ACIT, JODHPUR V. M/s. Laxmi Engineers, JODHPUR

ITA 460/JODH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5240 (ITAT-JODHPUR)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 01-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MOURYA
• Assessee Lawyers: DEEPAK ARORA
• Keywords: Sale consideration of property below Jantri Value
• Section: 40A(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI N.S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 460 / JODH /201 5 (ASST. YEAR : 20 1 0 - 11 ) AC IT, CIRCLE - 1, JODHPUR . VS. M/S. LAXMI ENGINEERS, G - 558(B), MIA, 2 ND PHASE, BASNI, JODHPUR. PAN NO. AABFL 1327 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI DEEPAK ARORA C A. DEPARTMENT BY : S HRI S.L. MOURYA - DR DATE OF HEARING : 1 5 / 0 3 /201 6 . DATE OF PRONOUNCEMENT : 1 5 / 03 /201 6 . O R D E R PER N.S. SAINI , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , JODHPUR , DATED 2 2 /0 7 /201 5. 2. THE SOLE G R OUND OF APPEAL TAKEN BY THE REVENUE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DELETING THE PENALTY LEVIED UNDER SEC. 271(1)(C) OF THE ACT OF RS. 15,60,450/ - . 3 . BRIEF FACTS OF THE CASE ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER FUND TH A T THE ASSESSEE FIRM MADE MANY WITHDRAWALS WITH CHEQUE PAYABLE TO SELF FROM ITS BANK ACCOUNT N O . 23200100136314 IN PUNJAB NATIONAL BANK , JODHPUR , BUT THE SAME WERE SHOWN TO BE PAID TO PARTIES AGAINST EXPENSES . A CCORDINGLY, AFTER 2 ITA NO. 460/JODH/2015 CONSIDERING RS. 1 LAC AS CAPITAL WITHDRAW A L, THE BALANCE AMOUNT OF RS.50,50,000/ - WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE UNDER SEC. 40A(3A) OF THE ACT CONSIDERING THE SAME AS DEEMED PROFIT OF THE YEAR, AS ALL THESE PAYMENTS MADE AGAINST EXPENSES ARE ABOVE RS.20,000/ - AND HAD BEEN PAID TO ONE SINGLE PERSON EACH DAY . THEREAFTER , PENALTY PROCEEDINGS WERE ALSO INITIATED FOR FURNISHING THE INACCURATE PARTICULARS OF INCOME. THE ASSESSING OFFICER CONCLUDED TH A T THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF INCOME AND LEVIED PENALTY OF RS. 15,60,450/ - BEING 1 0 0% OF TAX SOUGHT TO BE EVADED. 4 . ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) FOLLOWING THE ORDER OF THE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. MODERN THEATRE LTD . , DATED 14/05/2013 WHERE IT WAS HELD TH A T PENALTY UNDER SEC. 271(1)(C) CANNOT BE IMPOSED ON QUANTUM ADDITION MADE UNDER SEC. 50C OF THE ACT , DELETED THE LEVY OF PENALTY. 5. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDER OF THE ASSESSING OFFICER, WHEREAS AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). 6 . WE FIND THAT THE AHM E DABAD B' BENCH OF THIS TRIBUNAL IN THE CASE OF ITO VS. M/S. BESTO TRADELINK (P) LTD. IN ITA NO. 2652/ADH/2011 , ORDER DATED 09/06/2015 , HELD AS UNDER: - WE REITERATED THAT QUANTUM AND PENALTY PROCEEDINGS UNDER THE ACT SAND ON A DIFFERENT FOOTING AND EACH AND EVERY DISALLOWANCE/ADDITION DOES NOT LEAD TO AUTOMATIC IMPOSITION OF PENALTY AS HELD BY HON'BLE APEX COURT IN RELIANCE PETROPRODUCTS LTD. [(322 ITR 158 (SC)] ASSESSMENT YEAR 2001 - 02 . THEREFORE, WE HOLD THAT THE ASSESSING OFFICER HAD WRONGLY HELD ASSESSEES CASE AS THAT OF FURNISHING OF INACCURATE PARTICULARS OF INCOME UNDER SEC. 271(1)(C) OF THE ACT. WE ALSO FIND IN THE SAME TUNE THAT THE ASSESSING OFFICER HAS COMPUTED THE OTHER DISALLOWANCE OF INTEREST AMOUNT AND THE ONE UNDER SEC. 40A(3) ONLY ON THE BASIS 3 ITA NO. 460/JODH/2015 OF ASSESSEES ACCURATE PARTICULARS ALREADY SUBMITTED ON RECORD IN THE COURSE OF SC RUTINY. RESPECTFULLY, FOLLOWING THE ABOVE QUOTED DECISION , WE DISMISS THE GROUND OF APPEAL OF THE REVENUE. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON TUESDAY , THE 1 5 TH DAY OF MARCH , 201 6 AT JODHPUR . S D / - S D / - (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER D ATED : 1 5 TH MARCH , 201 6 . VR/ - COPY TO: 1. THE ASSESS E E. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R . 6. GUARD FILE. BY ORDER .