INCOME TAX OFFICER-3 (4), JALANDHAR V. SHRI HARNIDHAN SINGH , JLANDHAR

ITA 486/ASR/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9828 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHRAY SARNA LD
• Keywords: Revised return
• Section: 271(1)(c); 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N.K.CHOUDHRY, JUDICIAL MEMBER AND DR. A.L.SAINI, ACCOUNTANT MEMBER ITA NO. 486/ASR/2018 ASSESSMENT YEAR: 2014-15 INCOME TAX OFFICER-3(4) JALANDHAR. VS. SH. HARNIDHAN SINGH R/S 90, GURU GOBIND SINGH NAGAR, JALANDHAR. [PAN:BHLPS 0293Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SH. CHARAN DASS ( LD. DR) RESPONDENT BY: SH. ASHRAY SARNA (L D. DR) DATE OF HEARING: 29.11.2019 DATE OF PRONOUNCEMENT: 30.12.2019 ORDER PER N.K.CHOUDHRY, JM: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAINST THE IMPUGNED ORDER DATED 30.07.2018 PASSED BY THE LD. CIT(A)-2, JALANDHAR U/S 250(6) OF THE INCOME TAX ACT, 1961 (HERE INAFTER CALLED AS THE ACT). 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICE R HAS MADE AN ADDITION OF RS.1,86,41,816/- AND OBSERVED THA T THE ASSESSEE DELIBERATELY & WILLFULLY CONCEALED HIS PARTICULARS OF I NCOME IN THE ORIGINAL RETURN FILED ON 31.3.3015, FOR WHICH THE CASE WAS SELECTED FOR SCRUTINY. IN THE LAST PARA OF THE ASSESSMENT ORDER, THE A SSESSING OFFICER HAS OBSERVED THAT THUS I AM SATISFIED THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF HIS INCOME TO THE TUNE OF ITA N0.486/ASR/ 2018 (A.Y.2014-15) ITO VS. SH. HARNIDHAN SIN GH 2 RS.1,86,41,816/- IN HIS ORIGINAL RETURN OF INCOME AND THEREFORE, CONCEALED HIS INCOME. SUBSEQUENTLY, ISSUED THE NOTICE U/S 271 R.W.S 271 OF THE ACT FOR THE CONCEALMENT OF PARTICULARS OF INCO ME U/S 271(1)(C) AND ULTIMATELY VIDE PENALTY ORDER DATED 19 .06.2017 LEVIED THE PENALTY FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME. 3. THE ASSESSEE PREFERRED THE FIRST APPEAL BEFORE THE LD. CIT(A) WHO VIDE IMPUGNED ORDER DATED 30.07.2018 THOUGH DID NOT ACCEPT THE ISSUE QUA DEFECTIVE NOTICE U/S 274 OF THE ACT, RAISED BY T HE ASSESSEE, HOWEVER, ON MERIT DELETED THE PENALTY BY OBSERVING A S UNDER: 4.11. 4.11. I HAVE ALSO CAREFULLY CONSIDERED THE SUBM ISSIONS MADE ON MERITS OF THE CASE AND FIND THAT THESE FACT S ARE NOT DISPUTED THAT APPELLANT HAD MADE A SURRENDER OF INC OME ON 28.11.2015 AND ALSO REVISED THE RETURN OF INCOME ON 31.03.2016. IT IS SEEN FROM THE SEQUENCE EVENTS STA TED ABOVE THAT SURRENDER OF INCOME AND REVISED RETURN WAS FIL ED BEFORE THE FACTS OF BOGUS GAINS ON SHARE TRANSACTIONS WERE CONFRONTED BY THE AO. I HAVE ALSO GONE THROUGH THE JUDICIAL DECISIONS CITED BY THE APPELLANT ON THIS ISSUE INCL UDING THAT OF HONBLE PUNJAB & HARYANA HIGH COURT AND FIND THAT P ENALTY HAS BEEN IMPOSED BY THE AO MERELY ON THE BASIS OF S URRENDER OF INCOME MADE BY THE APPELLANT IN THE COURSE OF IN VESTIGATION PROCEEDINGS BEFORE THE ADIT AND ALSO A REVISED RETU RN OF INCOME WAS FILED. NO INDEPENDENT ENQUIRIES HAVE BEE N MADE OR ANY FINDING HAS BEEN GIVEN BY THE AO OR ANY OTHE R ADVERSE MATERIAL BEEN BROUGHT ON RECORD IN THE COURSE OF PE NALTY PROCEEDINGS TO HOLD THAT APPELLANT HAS FURNISHED IN ACCURATE PARTICULARS OF HIS INCOME OR HAS CONCEALED THE INCO ME. RESPECTFULLY FOLLOWING THE JUDICIAL DECISIONS CITED BY THE APPELLANT OF HONBLE PUNJAB & HARYANA HIGH COURT & HONBLE ITAT, DELHI BENCH ON THIS ISSUE, 1 HOLD THAT THERE IS NO JUSTIFICATION IN THE ACTION OF THE AO AND THEREFORE , DELETE THE PENALTY OF RS.63,68,527/- IMPOSED BY THE AO. 3.1 WE REALIZE THAT WHILE DEALING WITH THE PENALTY ORD ER, THE LD. CIT(A) NOT ONLY CONSIDERED THE PECULIAR FACTS AND CIRCUMST ANCES TO THE EFFECT THAT THE PENALTY HAS BEEN IMPOSED BY THE AO MER ELY ON THE ITA N0.486/ASR/ 2018 (A.Y.2014-15) ITO VS. SH. HARNIDHAN SIN GH 3 BASIS OF SURRENDERED INCOME MADE BY THE ASSESSEE IN THE COUR SE OF INVESTIGATION PROCEEDINGS BEFORE THE ADIT AND THE ASSESSE E HAS ALSO FILED HIS REVISED RETURN OF INCOME AND FURTHER NO INDE PENDENT ENQUIRIES HAVE BEEN MADE OR ANY FINDING HAS BEEN GIVEN BY THE AO OR ANY OTHER ADVERSE MATERIAL HAVE BEEN BROUGHT ON RECORD IN THE CO URSE OF PENALTY PROCEEDINGS TO HOLD THAT THE APPELLANT HAS FURNISHED IN ACCURATE PARTICULARS OF HIS INCOME OR HAS CONCEALED THE INCOME. ULTI MATELY, THE LD. CIT(A) DELETED THE PENALTY OF RS.63,68,527/- IMP OSED BY THE AO. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE F INDINGS OF THE LD. CIT(A) WHEREIN HE HAS ANALYZED ALL THE PECULIAR F ACTS AND CIRCUMSTANCES OF THE CASE AND RIGHTLY HELD THAT THE PENALT Y HAS BEEN IMPOSED MERELY ON THE BASIS OF SURRENDERED INCOME DURING THE INVESTIGATION PROCEEDINGS AND IT IS A FACT THAT THE ASSESSE E CORRECTED HIS RETURN BY FILING A REVISED RETURN OF INCOME. IT IS ALSO A FACT THAT NO ADVERSE MATERIAL WAS AVAILABLE BEFORE THE AO TO FASTE N THE LIABILITY AGAINST THE ASSESSEE QUA FURNISHING OF PARTICULARS OF INCO ME OR CONCEALING THE INCOME. CONSEQUENTLY, ON THE AFORESAID RE ASONS THE DELETION OF PENALTY BY THE LD. CIT(A) IS SUSTAINABLE A ND HENCE THE ORDER UNDER CHALLENGE DOES NOT REQUIRE ANY INTERFEREN CE BY THIS BENCH. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE DEPA RTMENT STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/1 2/2019. SD/- SD/- (DR. A.L.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED: 30/12/2019. /PK/ PS. ITA N0.486/ASR/ 2018 (A.Y.2014-15) ITO VS. SH. HARNIDHAN SIN GH 4 COPY FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THEN CIT(APPEALS) 5. SR DR, I.T.A.T. AMRITSAR 6. GUARD FILE TRUE COPY BY ORDER