Mukesh Khurana, New Delhi V. DCIT, Central Circle, Noida

ITA 4708/DEL/2018

AI Insights

The case involves Mukesh Khurana, an individual with income from business and other sources, who faced a penalty under section 271(1)(c) of the Income Tax Act, 1961, following a search and seizure operation under section 132. Initially, Khurana declared a significantly lower income in his return, which was later substantially increased following the search. The Assessing Officer (A.O.) and CIT(A) both upheld the penalty for concealment of income. The Tribunal, after considering the submissions and the material on record, agreed with the lower authorities and dismissed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122172 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 12-12-2022
• Assessment Year: 2008-2009
• Appeal Filed On: 25-06-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “E”: DELHI BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA.No.4708/Del./2018 Assessment Year 2008-09 Mukesh Khurana B-7/100, Safdarjung Enclave Extn. New Delhi 110055 PAN AMYPK1514B vs. Dy. Commissioner of Income Tax, Central Circle Noida. (Appellant) (Respondent) For Assessee : None For Revenue : Ms. Sarita Kumari, CIT-DR Date of Hearing : 13.12.2022 Date of Pronouncement : 05.01.2023 ORDER PER ANIL CHATURVEDI, A.M. : This appeal filed by the assessee is directed against the Order of the Ld. CIT(A)-IV, Kanpur, dated 12.04.2018 in Appeal No.CIT(A)-IV/KNP/10371/DCIT- CC/Noida/2016-17/58 relating to the A.Y. 2008-09. 2. The relevant facts as culled from the material on records are as under : 2 ITA.No. 4708/Del./2018 2.1. Assessee is an individual who is stated to be having income from business and other sources. Assessee had filed original of income on 29.09.2088 declaring total income at Rs. 11,05,270/-. A search & seizure operation u/s. 132 of the Act was conducted on 09.11.2013 on the premises of the assessee comprising Shubkamna Buildtech Pvt. Ltd., group of cases. Consequently notice u/s. 153A was issued on 06.08.2015 and in response to which assessee filed the return of income for A.Y. 2008-09 on 22.03.2016 declaring total income of Rs. 8,91,78,562/-. The case of the assessee was taken up for scrutiny and thereafter, assessment was framed under section 143(3) r.w.s. 153A of the I.T. Act, 1961, vide order dated 31.03.2016 and the total income was determined at Rs. 8,91,78,562/-. A.O. held that the additional income declared by the assessee was consequent to the search action u/s. 132 of the Act and thus the case was covered within the meaning of concealment of income and furnishing of inaccurate particulars of income as 3 ITA.No. 4708/Del./2018 contemplated u/s. 271(1)(c) of the Act. He thereafter levied penalty of Rs. 3,03,03,876/- u/s. 271(1)(c) of the Act. 2.2. Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A) who vide order dated 12.04.2018 Appeal No. CIT(A)- IV/KNP/10371/DCIT-CC/Noida/2016-17/58, dismissed the appeal of the assessee. 3. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised various grounds. The grounds raised by the assessee are argumentative in nature but however we find that the crux of the issue is the confirmation of levy of penalty u/s. 271(1)(c) of the Act. 4. The case file reveals that the case was listed for hearing on various dates in the past but since there was no representation from the side of the assessee, the hearing of the appeal was adjourned on those dates. The case file further reveals that on 08.09.2022, the appeal was adjourned to 13.12.2022 at the request of the assessee and the date of hearing was communicated in the presence of 4 ITA.No. 4708/Del./2018 the AR of the assessee but on the date of present hearing there is no appearance of the assessee nor there is any adjournment application. Preferring an appeal does not mean merely formally fling it but also taking all the necessary steps to effectively purse the appeal. When an appeal is filed before the Tribunal by the assessee against the order of the lower authorities it is expected that assessee may put forth documentary evidence to support his contentions and it is the duty of the assessee to lead evidence in support of its claim before the adjudicating authority. In the absence of any co-operation from the side of assessee, we do not find any reason to keep the matter pending before us. In such a situation we proceed to dispose of the appeal ex-parte qua the assessee after considering the material on record and after hearing the Learned DR. 5. Before us, Ld. DR supported the order of lower authorities and further pointed to para 5.2 to sub paras at page no 4 to 6 of Ld. CIT(A) order, wherein CIT(A) has held that levy of penalty under explanation 5A to u/s. 271(1)(c) has been correctly levied as the income was disclosed 5 ITA.No. 4708/Del./2018 consequent to the search conducted by the Department. He thus supported the order of lower authorities. 6. We have heard the rival submission and perused the material on record. The issue in the present ground is with respect to levy of penalty u/s. 271(1)(c) of the Act. We find that the levy of penalty was upheld by Ld. CIT(A) by a well reasoned order after considering the submissions of the assessee. Before us no fallacy in the findings of Ld. CIT(A) has been pointed by the assessee. Considering the totality of the aforesaid facts we find no reason to interfere with the order Ld. CIT(A). Thus the ground of assessee dismissed. 7. In the result, appeal of the assessee is dismissed. Order pronounced in the open Court on 05.01.2023. Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi, Dated 05 th January, 2023 NV/- 6 ITA.No. 4708/Del./2018 Copy to 1. The appellant 2. The respondent 3. CIT(A) concerned 4. CIT concerned 5. D.R. ITAT ‘E’ Bench, Delhi 6. Guard File. // By Order // Assistant Registrar : ITAT Delhi Benches : Delhi.