Yuvraj Singh, New Delhi V. ITO, Ward-30(1), New Delhi

ITA 4543/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8739 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AMIT KUMAR
• Section: 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.4543/DEL/2019 Assessment Year 2011-12 Yuvraj Singh, 72, Gulmohar Land, Church Road, Mall Road, Vasant Kunj, New Delhi. ITO, Ward-30(1), New Delhi. TAN/PAN: BIEPS9585D (Appellant) (Respondent) Appellant by: Shri Amit Kumar, CA Respondent by: Shri Toufel Tahir, Sr.DR Date of hearing: 06 06 2022 Date of pronouncement: 10 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f In co me Tax (Ap p eals)XXXIII, New Delh i (‘CIT(A)’ in sh o rt) d ated 2 2 .0 3 .20 19 in rela tio n to p en alty p ro ceed in g s in iti ated u n d er Sectio n 2 7 1 B o f th e In co me Tax Act, 1 9 6 1 (th e Act) co n cern in g AY 2 0 11 -12 . 2 . As p er th e g ro u nds o f ap p eal, th e assessee h as ch al le n g ed th e i mp o si tio n o f p en alty o f Rs .7 7 ,4 6 2 /- u n d er Sectio n 2 7 1 B o f th e Act fo r al leg ed v io la tio n o f Sec ti o n 4 4AB o f the Ac t. 3 . Wh en th e mat ter was cal led fo r h ea rin g , th e ld . co u n sel fo r th e ass essee p o in t ed o u t th at th e a ssessee h as d ec lar ed a to tal tu rn o v er o f Rs. 5 8 ,4 2 ,50 0 /-, an d th ere fo re, b e in g a s ma ll b u sin essman was n o t o b lig ed to k eep th e acco u n ts. Th e retu rn was I.T.A. No.4543/Del/2019 2 fi led u n d er Sect io n 4 4 AD o f th e Ac t an d co n seq u en tly p ro v isio ns o f Sect io n 44 AB were n o t app licab l e to th e assessee p er se. Th e Assessin g Offi cer h o wev er p ro ceed ed o n th e b asis tha t c ash d ep o sits in th e n at u re o f ad v an ces a mo u n tin g to Rs .1 , 5 4 ,9 2 ,40 0 /- fo rms p art o f th e t u rn ov er o f th e assessee , an d th erefo re, case o f th e asses see is co v ered u nd er Secti o n 44 AB o f th e Act. Th e ld . co u n sel su b mi tt ed th a t th e ad d i tio n s mad e to ward s ca s h d ep o sits o f Rs.1 ,5 4 ,9 2 ,4 0 0 /- h as sin ce b een sett led u n d er ‘V i v a d se V i sh w a s S c h e m e , 2 0 2 0 ’ ( V S V ) . Un d er th e circu mstan c es, th e ld . co u n sel fo r th e ass essee su b mi tted th at th e ac tio n o f th e Ass essin g Offic er in imp o sin g p en alty u n d er Sectio n 2 71 B o f th e Act assumin g th e cash d ep o sits in th e n atu re tu rno v er fo r th e p u rp o ses o f Sectio n 4 4AB o f th e Act is wh o ll y u n ju sti fied . 4 . Th e Ld . DR fo r t h e Rev en u e rel ied u p o n th e o rd ers o f th e au th o ritie s b e lo w. 5 . In th e lig h t o f th e su b missio n s mad e o n b eh alf of th e assesse e, we fin d th at reaso n ab le ca u se ex ists fo r fa il u re o f th e assesse e to g et h is acco u n t au d ited in resp ect o f prev io u s y ear relev an t to Assess men t Year 2 0 1 1 -12 in q u estio n . The assess ee h as cla i med tu rn o v er in b u sin ess to th e tu n e o f Rs .5 8 ,4 2 ,5 00 /- wh ich is b elo w th e th resh o ld o f Rs.6 0 lac ap p lic a b le at th e relev an t ti me . Th e assesse e h as fi le d a retu rn tak in g sh elter o f Sect io n 4 4 AD o f th e Act an d d ecla red 8 % on th e tu rno v er on est imat ed b asis as p ro v id ed u nd er th e p resu mp t iv e tax a tio n sch eme o f S ect io n 4 4 AD o f th e Act. Th e Assessin g Offi cer in th e co u rse o f ass ess men t h as d i sp lac ed th e tu rn o v er d ecla red b y th e assesse e b y in c lu d in g th e c ash d ep o sits re fl ect ed as l i ab il ity b y th e assesse e in th e relev an t asses smen t y ear. Th u s, wh en seen with th e fact th at th e q u an tu m li tig a tio n h as co me to an en d u nd er I.T.A. No.4543/Del/2019 3 ‘ V i v a d s e V i s h w a s S c h e m e , 2 0 2 0 ’ ( V S V ) an d th ere i s n o fin al ju d icia l fin d in g av ailab l e reg ard in g th e co rrectn ess o f tu rn o v er d eclared b y th e assessee , th e b en efit o f d o u b t mu st g o to th e assesse e. Th e in co me h as b een ass essed an d th e tax h as b een co lle cted wi th o u t p ro tracted l it ig at io n . Hen ce, th e s ta l e cau se in th e fo rm o f p en al t y un d er Sectio n 27 1 B sh ou ld b e shun n ed in the p ecu liar c ircu msta n ces. We th u s se t asid e th e o rd er o f th e CIT(A) an d rev erse th e ac t io n o f th e Assess in g Officer . 6 . In th e resu l t, th e a p p eal o f th e asses s ee is a l lo wed . Order pronounced in the open Court on 10/06/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2022