Palli Thavudu, Srikakulam V. The ITO, Srikakulam

ITA 43/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5158 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 03-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C DAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 4 3 / VIZ /201 7 (ASST. YEAR : 20 11 - 12 ) PALLI THAVUDU, D.NO. 3/4, PALLIPETA KOSTA VILLAGE, RANASTHALAM, SRIKAKULAM DIST. IT O , WARD - 2 , SRIKAKULAM . PAN NO. BIIPP 1194 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM , C A. DEPARTMENT BY : SHRI K.C. DAS , SR. DR DATE OF HEARING : 18 / 0 7 /201 8 . DATE OF PRONOUNCEMENT : 20 / 0 7 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 , GUNTUR , DATED 13 /0 7 /201 6 FOR ASSESSMENT YEAR 20 11 - 12 , WHEREBY PENALTY ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) HAS BEEN CONFIRMED . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS NOTICED THAT THERE IS A OPENING CAPITAL OF RS. 9,39,500/ - , UNSECURED LOANS OF 2 ITA NO. 43/VIZ/2017 ( PALLI THAVUDU ) RS. 21,50,000/ - AND INVESTMENT MADE DURING THE ACCOUNTING YEAR OF RS. 7,23,809/ - . IN RESPECT OF THE ABOVE AMOUNTS, THE ASSESSING OFFICER HAS A S KED THE ASSESSEE TO EXPLAIN THE SOU RCES . THE ASSESSEE NEITHER FIELD ANY DET A ILS NOR APPEAR ED BEFORE THE ASSESSING OFFICER . THEREFORE, THE ASSESSING OFFICER HAS ADDED THE ABOVE AMOUNTS TO THE TOTAL INCOME OF THE ASSESSEE. SUBSEQUENTLY , A NOTICE UNDER SEC TION 271(1)(C) OF THE ACT , DATED 07/03/2014 HAS BEEN ISSUED TO THE ASSESSEE. IN REPLY TO THE NOTICE, THE ASSESSEE HAS FILED A REPLY ON 02/04/2014 REQUESTING THE ASSESSING OFFICER TO KEEP PENDING THE PENALTY PROCEEDINGS , TILL THE FINALIZATION OF THE APPEAL PREFERRED BY HIM BEFORE THE LD.CIT(A) , WHICH WAS FOLLOWED BY ANOTHER LE T TER DATED 08/09/2014 . AGAIN THE ASSESSING OFFICER HAS ISSUED SHOW - CAUSE NOTICE ON 24/02/2014, WHICH WAS SERVED ON THE ASSESSEE ON 26/02/2014, BUT NO RESPONSE FROM THE ASSESSEE . ACCORDINGLY, THE ASSESSING OFFICER HAS LEVIED MINIMUM PENALTY OF RS. 12,80,600/ - UNDER SECTION 271(1)(C) OF THE ACT FOR CONCEALMENT OF INCOME . 3 . ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE NEITHER FILED ANY EVIDENCE IN RESPECT OF THE SOURCE OF INVESTMENT NOR EXPLANATION WAS FURNISHED. THEREFORE, LD. CIT(A) CONFIRMED THE PENALTY ORDER PASSED BY THE ASSESSING OFFICER. EVEN BEFORE US, THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE SIMPLY RELIED ON 3 ITA NO. 43/VIZ/2017 ( PALLI THAVUDU ) THE GROUNDS RAISED BY THE ASSESSEE, BUT NOT FILED ANY EVIDENCE OR EXPLANATION TO SUBSTANTIATE THAT THE PENALTY LEVIED IS , NOT CORRECT. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE , WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE L D. CIT(A). THUS, THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. 4 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 0 T H DAY OF JULY , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 0 T H JULY , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE - PALLI THAVUDU, D.NO. 3/4, PALLIPETA KOSTA VILLAGE, RANASTHALAM, SRIKAKULAM DIST. 2. THE REVENUE ITO, WARD - 2, SRIKAKULAM. 3. THE PR. CIT - 2, VISAKHAPATNAM. 4. THE CIT(A) - 2, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.