Om Venkateswara General Merchants, Amalapuram V. THE ITO, WARD - 1, Amalapuram

ITA 455/VIZ/2014

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9906 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-08-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 14-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Assessee Lawyers: N O N E

Judgement Text

ITA NO.455/VIZAG/2014 M/S. OM VENKATESWARA GENERAL MERCHANTS, AMALAPURAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ./I.T.A.NO.455/VIZAG/2014 ( / ASSESSMENT YEAR: 2005-06) M/S. OM VENKATESWARA GENERAL MERCHANTS, AMALAPURAM VS. ITO, WARD - 1, AMALAPURAM [PAN: AAAFO3448L ] ( / APPELLANT) ( ! / RESPONDENT) / APPELLANT BY : N O N E / RESPONDENT BY : SHRI M.K. SETHI, DR / DATE OF HEARING : 16. 0 8.2016 / DATE OF PRONOUNCEMENT : 22.08.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A), VISAKHAPATNAM DATED 27.5.2014 FOR THE ASSES SMENT YEAR 2005-06. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS A REGIST ERED FIRM DEALING IN WHOLESALE PULSES AND OILS. IT HAD FILED ITS RETURN OF INCOME BY ADMITTING ITA NO.455/VIZAG/2014 M/S. OM VENKATESWARA GENERAL MERCHANTS, AMALAPURAM 2 A TOTAL INCOME OF RS.3,22,390/-. THE ASSESSEES CA SE WAS SELECTED FOR SCRUTINY AND AFTER DUE PROCESS, ASSESSMENT WAS COMP LETED BY DETERMINING TOTAL INCOME OF THE ASSESSEE AT ` 4,80,270/- WHICH INCLUDES AN ADDITION OF ` 41,750/- TOWARDS SUPPRESSION OF TURNOVER. SUBSEQUENTLY, THE A.O. HAS INITIATED PENALTY PROCEE DINGS U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'). IT WAS SUBMITTED BEFORE THE A.O. THAT THE SALES TAX DEPART MENT HAS MENTIONED IN THE ASSESSMENT ORDER, A SUM OF ` 41,750/- TOWARDS PROBABLE SUPPRESSION AND BASED ON THE SALES TAX DEPARTMENTS ASSESSMENT ORDER, ADDITION WAS CONFIRMED IN THE ORIGINAL ASSESSMENT O RDER AS WELL AS IN THE PENALTY ASSESSMENT ORDER ALSO. THE LD. CIT(A) ALSO CONFIRMED THE ORDER OF PENALTY. 3. I HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. I FIND THAT THE SALES TAX DEPARTMENT MADE AN ADDITION ON THE GR OUND THAT THERE IS A PROBABLE SUPPRESSION OF TURNOVER TO THE EXTENT OF ` 41,750/-. WHEN THE SCRUTINY ASSESSMENT WAS TAKEN PLACE, THE ASSESS ING OFFICER HAS TAKEN INTO CONSIDERATION THE SALES TAX DEPARTMENTS ASSES SMENT ORDER AND ACCORDINGLY ADDITION WAS MADE. ASSESSEE HAS NOT CA RRIED THE MATTER IN APPEAL BECAUSE THE AMOUNT IS VERY SMALL. I FIND TH AT THE ASSESSEE ITA NO.455/VIZAG/2014 M/S. OM VENKATESWARA GENERAL MERCHANTS, AMALAPURAM 3 NEITHER CONCEALED THE INCOME NOR FILED INACCURATE P ARTICULARS. ONLY THE A.O. ON THE BASIS OF SALES TAX ASSESSMENT ORDER IS NOT JUSTIFIED IN SAYING THAT ASSESSEE CONCEALED PARTICULARS OF INCOME OR FU RNISHED INACCURATE PARTICULARS. THUS, THE PENALTY ORDER PASSED BY THE A.O. AS CONFIRMED BY LD. CIT(A) IS CANCELLED AND APPEAL FILED BY THE ASS ESSEE IS ALLOWED. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND AUG16. SD/- ( . ) (V. DURGA RAO) /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 22.08.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT M/S. OM VENKATESWARA GENERAL MER CHANTS, 5-2-47/15, GOLLAGUDEM, BYPASS ROAD, AMALAPURAM-533 201. 2. / THE RESPONDENT THE ITO, WARD-1, AMALAPURAM 3. ) / THE CIT, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM