SHRI SANTOSH AGRAWAL HUF, Jalgaon V. THE ITO, Burhanpur

ITA 445/IND/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5939 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 10-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

SANTOSH AGRAWAL ITA NO. 445/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 445/IND/2015 A.Y.2009-10 SANTOSH AGRAWAL JALGAON PAN AAAHA 8054Q ::: APPELLANT VS INCOME TAX OFFICER BURHANPUR ::: RESPONDENT APPELLANT BY NONE RESPONDENT BY SHRI RAJIV JAIN DATE OF HEARING 12.7.2016 DATE OF PRONOUNCEMENT 1 2 .7.2016 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 30. 1.2015. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LEA RNED CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY OF SANTOSH AGRAWAL ITA NO. 445/IND/2015 2 RS.35,000/- BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT. 3. I HAVE HEARD RIVAL SUBMISSIONS OF THE PARTIES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE MATERIAL AVAILABLE ON RECORD. BRIEF FACTS OF THE CASE ARE THAT WHILE MAKING THE ASSESSMENT ORDER THE ASSESSING OFFIC ER OBSERVED THAT THE ASSESSEE HUF HAD RECEIVED INTEREST OFRS.1,28,286/- FROM BANK WHICH WAS NOT SHOWN IN THE RETURN OF INCOME FILED BY IT. THE ASSESSEE DURING TH E COURSE OF ASSESSMENT PROCEEDINGS ACCEPTED THAT IT WAS DUE TO OVERSIGHT AND AGREED TO PAY TAX ON THAT. THEREAFTER, T HE ASSESSING OFFICER LEVIED PENALTY U/S 271(1)(C) OF TH E ACT OF RS.35,000/- ON THE GROUND OF CONCEALMENT OF INCOME B Y THE ASSESSEE WHICH WAS CONFIRMED IN APPEAL BY THE LEARN ED CIT(A). 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED BE FORE THE LOWER AUTHORITIES THAT IT WAS DUE TO BONAFIDE MISTAK E SANTOSH AGRAWAL ITA NO. 445/IND/2015 3 THAT THE ASSESSEE OMITTED TO SHOW INTEREST INCOME REC EIVED ON FDRS OF RS.1,28,286/- AND HENCE WAS NOT LIABLE TO PENALTY. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. I FIND THAT THE ASSESSEE DUE TO AN INADVERTENT MISTAK E FAILED TO SHOW THE INCOME OFRS.1,28,286/- BEING INTE REST RECEIVED ON FDRS. ON BEING POINTED OUT OF THIS MIS TAKE BY THE ASSESSING OFFICER, THE ASSESSEE READILY AGREED TO PAY TAX THEREON. THE ASSESSING OFFICER LEVIED PENALTY FO R CONCEALMENT OF INCOME OF RS.35,000/-. I FIND THAT IT IS NOT THE CASE OF THE REVENUE THAT THE FIXED DEPOSIT RECEIP TS WERE NOT DISCLOSED TO THE DEPARTMENT BY THE ASSESSEE. THAT BEING SO, IT CANNOT BE SAID THAT THE ASSESSEE HAD ANY INTENTION OF CONCEALMENT OF ITS INCOME. I FIND THAT THE HON'BLE SUPREME COURT IN THE CASE OF PRICE WATER HOUS E COOPER PVT. LTD. VS. CIT; CIVIL APPEAL NO. 6924/2012 ORDER DATED 25 TH SEPTEMBER, 2012 HAS HELD THAT WHERE THE SANTOSH AGRAWAL ITA NO. 445/IND/2015 4 ASSESSEE COMMITS A BONAFIDE AND INADVERTENT ERROR IN TH E RETURN OF INCOME, HE IS NOT EXIGIBLE TO PENALTY U/S 271(1)(C) OF THE ACT. I, THEREFORE, SET ASIDE THE ORDERS OF TH E AUTHORITIES BELOW AND DELETE THE PENALTY OF RS.35,000/ -. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. PRONOUNCED IN OPEN COURT ON 12 TH JULY, 2016 SD/- (N.S. SAINI) ACCOUNTANT MEMBER 12 TH JULY, 2016 DN/- SANTOSH AGRAWAL ITA NO. 445/IND/2015 5