ITO, New Delhi V. Dr. Raman Khera, New Delhi

ITA 4551/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74000 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 01-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI) BEFORE SHRI U. B. S. BEDI, JUDICIAL MEMBER AND SHRI J. S. REDDY, ACCOUNTANT MEMBER I.T.A. NO. 4551 /DEL/2013 (ASSESSMENT YEAR 2006-07) ITO, WARD 25(3), VS. DR. RAMAN KHERA, NEW DELHI. C/O RAHUL KAPOOR & ASSOCIATES, CHARTERED ACCOUNTANTS, E-186, GRATER KAILASH-I, NEW DELHI. PAN/GIR NO.: AAOPK7822J (APPELLANTS) (RESPONDENTS) DEPARTMENT BY: MS. MEENAKSHI VOHRA, SR. DR ASSESSEE BY : NONE ORDER PER U B S BEDI, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY LD. CIT(A) - XXIV, NEW DELHI DATED 22.05.2013 RELEVANT TO ASSESSMENT YEAR 2006-07 WHEREBY, DEPARTMENT HAS CHALLENGED THE DELE TION OF PENALTY OF RS.39,22,510/- IMPOSED BY THE A.O. U/S 271(1)(C) OF THE I. T. ACT, 1961. 2. THE FACTS INDICATE THAT ASSESSMENT U/S 143(3) WA S COMPLETED IN THIS CASE ON 22.12.2008 AT AN INCOME OF RS.80,46,433/- A S AGAINST THE RETURNED INCOME OF RS.3,82,155, THEREBY MAKING TOTAL ADDITIO N OF RS.76,64,278/-. SUBSEQUENTLY, FOLLOWING THE DIRECTIONS OF THE LD. C IT(A) XXIV IN APPEAL NO.429/08-09 DATED 24.11.2010, THE ASSESSED INCOME WAS FURTHER ENHANCED I.T.A. NO. 4551/DEL/2013 2 TO RS.1,19,56,474/-. THE ADDITION WAS MADE BY THE A.O. ON THE GROUND THAT OUT OF TOTAL RECEIPTS OF RS.1,21,83,494/- FORM U.G. HOSPITALS (P) LTD. DURING THE PERIOD RELEVANT TO ASSESSMENT YEAR UNDER CONSID ERATION, ASSESSEE HAD OFFERED FOR TAXATION ONLY RS.6.09,175/- FOR THE PUR POSE OF TAXATION AS HIS PROFESSIONAL RECEIPTS AND REMAINING SUM WAS SHOWN A S ADVANCE FOR THE SUBSEQUENT 5 YEARS. THE A.O., WHILE COMPLETING THE ASSESSMENT, HELD THAT IN THE ABSENCE OF MOU CLAIMED TO HAVE BEEN ENTERED INT O BETWEEN THE ASSESSEE AND U.G. HOSPITALS (P) LTD., WHICH COULD NOT BE FIL ED BEFORE HIM, THE CLAIM OF THE ASSESSEE THAT HE RECEIVED PROFESSIONAL RECEI PTS OF RS.1,21,83,494/- IS NOT TENABLE AND HE ASSESSED THE SAME AS CONCEALED I NCOME. HOWEVER, HE GAVE A DEDUCTION OF 35% WHICH COMES TO RS.42,65,000 /- TO EARN THIS INCOME AND ASSESSED THE INCOME OF THE ASSESSEE AT RS.79,18 ,494/- AS CONCEALED INCOME FOR THE YEAR UNDER CONSIDERATION. BEING AG GRIEVED WITH THE ORDER OF THE A.O., ASSESSEE PREFERRED APPEAL BEFORE LD. CIT( A) XXIV, WHO HELD THAT, ASSESSEE DO NOT ENTITLE FOR ANY DEDUCTION AND DIREC TED THE A.O. TO TAX THE ENTIRE INCOME AS INCOME OF THE YEAR UNDER CONSIDERA TION. WHILE GIVING APPEAL EFFECT TO THE ORDER OF THE LD. CIT(A) XXIV, A.O. ENHANCED THE INCOME ACCORDINGLY AND INITIATED PENALTY PROCEEDING S U/S 271(1(C) ON THE INCOME FOR CONCEALMENT OF INCOME AND DURING THE COU RSE OF APPELLATE PROCEEDINGS HELD THAT ASSESSEE HAS FAILED TO DISCLO SE THE TRUE PARTICULARS OF INCOME AND IMPOSED PENALTY U/S 271(1)(C) BEING 100% OF TAX SOUGHT TO BE EVADED. 3. AGGRIEVED BY THE ORDER OF THE A.O., ASSESSEE TOO K UP THE MATTER IN APPEAL AND PLEADED BEFORE THE FIRST APPELLATE AUTHO RITY THAT SINCE ADDITIONS I.T.A. NO. 4551/DEL/2013 3 MADE IN THE ASSESSMENT ORDER HAVE BEEN DELETED BY I TAT DELHI BENCHES, ON APPEAL AND, THEREFORE, AS THE VERY BASIS ON WHICH T HE PENALTY WAS IMPOSED HAVE BEEN VANISHED, THERE WAS NO QUESTION OF LEVYIN G PENALTY U/S 271(1)(C) OF THE ACT. BY PLACING COPY OF THE SAID ORDER OF D ELHI BENCHES F BENCH IN I.T.A. NO. 476/DEL/2011 FOR THE ASSESSMENT YEAR 200 6-07 DATED 22.02.2013 IN THE CASE OF DR. RAMAN KHERA VS ITO, IT WAS PRAYE D FOR DELETION OF PENALTY BY DECIDING THE ISSUE IN FAVOUR OF THE ASSE SSEE. 4. LD. CIT(A) WHILE CONSIDERING THIS FACTUAL ASPECT AND IN VIEW OF ITATS ORDER IN QUANTUM APPEAL, HAS OPINED THAT CON CEALMENT PENALTY IMPOSED BY THE A.O. HAS NO LEGS TO STAND UPON SO, H E DELETED THE PENALTY. 5. AGGRIEVED BY THE ORDER OF DELETION OF PENALTY, D EPARTMENT HAS COME UP IN APPEAL AND IT WAS PLEADED FOR SETTING ASIDE T HE ORDER OF LD. CIT(A) AND RESTORING THAT OF THE A.O. WHEN LD. D.R. WAS SPECI FICALLY ASKED TO PINPOINT ANY INFIRMITY OF LAW IN THE ORDER OF LD. CIT(A), SH E JUST RELIED UPON THE ORDER OF THE A.O. 6. DESPITE SENDING NOTICE OF HEARING SUFFICIENTLY I N ADVANCE, NOBODY ATTENDED ON BEHALF OF THE ASSESSEE, THEREFORE, WE P ROCEEDED EX-PARTE QUA THE ASSESSEE TO DECIDE THIS APPEAL IN VIEW OF THE ARGUM ENTS OF LD. D.R. AND MATERIAL ON RECORD. 7. AFTER HAVING HEARD LD. D.R. AND CONSIDERING THE MATERIAL ON RECORD, WE FIND THAT LD. CIT(A) HAS DELETED THE PENALTY ON THE BASIS OF ITATS ORDER IN ASSESSEES OWN CASE IN QUANTUM PROCEEDINGS WHERE BY ALL THE ADDITIONS MADE BY THE A.O. HAVE BEEN DELETED. NO CONTRARY MA TERIAL HAS BEEN BROUGHT ON RECORD BY THE DEPARTMENT. THEREFORE, CONSIDERIN G THE ENTIRETY OF THE FACTS I.T.A. NO. 4551/DEL/2013 4 AND CIRCUMSTANCES OF THE CASE AND MATERIAL ON RECOR D, WE DO NOT FIND ANY REASON OR BASIS TO INTERFERE IN THE ORDER PASSED BY LD. CIT(A), WHICH IS CONFIRMED AND APPEAL OF THE REVENUE IS DISMISSED BE ING DEVOID OF ANY MERIT. 8. AS A RESULT, APPEAL OF THE REVENUE GETS DISMISSE D. 9. ORDER PRONOUNCED SOON AFTER CONCLUSION OF HEARIN G ON 22 ND JAN., 2014. SD./- SD./- (J. S. REDDY) (U.B.S.BEDI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 22 ND JAN., 2014. SP. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XXV, NEW DELHI AR, ITAT, 5. CIT(ITAT), NEW DELHI NEW DELHI