Ravindra Gambhir Patil, Jalgaon V. The Income Tax Officer, Ward-2(4), Jalgaon

ITA 425/PUN/2023

AI Insights

The case involves three appeals by the appellant, Ravindra Gambhir Patil, against the orders of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2011-12. The appeals challenge the quantum addition and the imposition of penalties under sections 271(1)(c) and 271B of the Income-tax Act, 1961. The appellant was initially a non-filer, and upon information from the State Bank of India regarding substantial cash deposits, his case was reopened. The AO, after the appellant failed to respond to notices, completed the assessment under section 144 and imposed penalties for concealment and non-compliance with section 44AB. The Tribunal, after hearing the parties, decided to remand the case for a fresh assessment and penalty consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136293 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-05-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 10-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KALPESH RUPAVATIYA
• Keywords: Unexplained investment
• Section: 147; 69; 148; 271(1)(c); 144; 250; 271B; 44AB

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE SHRI S S VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 423 to 425/PUN/2023 निर्धारण वर्ा / Assessment Year : 2011-12 Ravindra Gambhir Patil, At Post Changdev, Tal-Muktainagar, Jalgaon - 425 306 PAN: ANGPP1849K . . . . . . . अपऩलधथी / Appellant बनाम / V/s Income Tax Officer, Ward - 2(4) Jalgaon . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Pramod Shingte Revenue by : Dr. Kalpesh Rupavatiya सपिवधई की तधरऩख / Date of conclusive Hearing : 30/05/2023 घोर्णध की तधरऩख / Date of Pronouncement : 30/05/2023 आदेश / ORDER PER BENCH; These bunch of three appeals of the assessee for the assessment year [for short “AY”] 2011-12 is assailed against the first appellate order of National Faceless Appeal Centre, Delhi [for short “CIT(A) /NFAC”] dt. 13/02/2023 passed u/s 250 of the Income-tax Act, 1961 [for short “the Act”], Ravindra Gambhir Patil ITA No. 423 to 425/PUN/2023 A.Y. 2011-12 ITAT-Pune Page 2 of 4 2. The ITA No 425/PUN/2023 is assailed against the quantum addition, whereas the ITA No. 424/PUN/2023 and 423/PUN/2023 are agitated against the imposition of consequential penalty u/s 271(1)(c) and 271B of the Act respectively. Since these appeals are inter connected and based on facts originated out of order of assessment passed u/s 144 r.w.s. 147 of the Act, for the purpose of brevity and convenience these are heard together for a common order. 3. Clinching facts emerging from the assessment order and penalty orders are as under; 3.1 The appellant assessee is a non-filer. Upon the receipt of information from State Bank of India that the assessee has deposited a total cash of ₹1,39,56,850/- into his account maintained with Muktainagar Branch Jalgaon, the case of the assessee after recording reasons and obtaining approval was reopened by service of notice dt. 30/03/2018 u/s 148 of the Act. Ravindra Gambhir Patil ITA No. 423 to 425/PUN/2023 A.Y. 2011-12 ITAT-Pune Page 3 of 4 3.2 In the event of assessee’s failure to attend further notices dt. 26/06/2018 and 27/10/2018 issued, the Ld. AO after putting the assessee to show case notices dt. 17/09/2018, 26/10/2018 & 27/10/2018 culminated the assessment u/s 144 of the Act by an order dt. 17/12/2018 and thereby brought to tax the entire amount of cash deposit as unexplained investment u/s 69 of the Act. 3.3 When assessee failed to represent his case in consequential penal proceedings, the Ld. AO culminated both penal proceedings by an order of even dt. 14/06/2019 imposing a minimum penalty of ₹41,62,290/- u/s 271(1)(c) for concealment & a penalty @0.5% u/s 271B of the Act for failure to comply with section 44AB of the Act. 4. These matters have travelled to the Tribunal, when aforestated quantum addition & levy of penalty without any effective representation were unsuccessfully agitated before first appellate authority. Ravindra Gambhir Patil ITA No. 423 to 425/PUN/2023 A.Y. 2011-12 ITAT-Pune Page 4 of 4 5. After hearing to rival contentions of both the parties; and subject to the provisions of rule 18 of ITAT, Rules 1963 perused the material placed on record. Without going into merits of the case, finding force in the submission of Ld. AR and after noting no objection from the Revenue, we remand these matters to the file of Ld. AO with a direction to accord further two effective opportunities to the appellant to adduce necessary documentary evidences in support of his claim and also direct to reframe the assessment de- nova and consequential levy of penalty (if any). 5. In result, these appeals are ALLOWED FOR STATISTCIAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Tuesday 30 st day of May, 2023. -S/d- -S/d- S S VISWANETHTRA RAVI G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 31 st day of May, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT-1, Nashik 4. The CIT(A)-NFAC, Delhi 5. DR, ITAT, Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. Ashwini 2:1 आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.