Shri Rajendra Mehta, JAIPUR V. ACIT, UDAIPUR

ITA 522/JODH/2010

• Counselvise Citation: 52223314 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 03-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N MAURYA
• Assessee Lawyers: SHRAWANA GUPTA

Judgement Text

1 ITA 522-10-JD IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 522/JODH/2010 ASSTT. YEAR : 2003-04. SHRI RAJENDRA MEHTA, VS. THE ACIT, CENTRAL CIRCL E-1, P/O M/S. CHIMANLAL BHAGWAN DAS UDAIPUR. MEHTA, NEW COLONY, DUNGARPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHRAWANA GUPTA RESPONDENT BY : SHRI M.N. MAURYA DATE OF HEARING : 16.12.2011. DATE OF PRONOUNCEMENT : 19.01.2012. ORDER DATE OF ORDER : 19/01/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST CONFIRMING L IABILITY OF PENALTY OF RS. 15,300/- UNDER SECTION 271(1)(C) RELATING TO ASSESS MENT YEAR 2003-04. 2. BRIEF FACTS OF THE CASE ARE THAT A SEARCH AND SE IZURE PROCEEDING WAS CARRIED OUT AT THE BUSINESS AS WELL AS RESIDENTIAL PREMISES OF THE ASSESSEE ON 02.12.2004. THE ASSESSEE DECLARED INCOME AT RS. 2,53,000/- IN THE RETURN FIL ED UNDER SECTION 153A. THE INCOME WAS SHOWN ON ACCOUNT OF TRADING OF GOLD AND SILVER ORNAMENTS. THE ASSESSMENT WAS COMPLETED ON A FIGURE OF RS. 3,04,000/- BY MAKING A DDITION OF RS. 51,000/- ON ACCOUNT OF VALUE OF CONSTRUCTION AT RS. 3,04 LACS. PENALTY PR OCEEDINGS UNDER SECTION 271(1)(C) WERE 2 ALSO INITIATED. THEREAFTER, AO LEVIED PENALTY OF R S. 15,300/- WHICH HAS BEEN CONFIRMED BY LD. CIT (A). 3. IT WAS SUBMITTED THAT ON SIMILAR CIRCUMSTANCES P ENALTY LEVIED FOR 2006-07 WAS CANCELLED BY LD. CIT (A) AND IN SIMILAR CIRCUMSTANC ES IN CASE OF SHRI BHANWAR LAL JAIN IN APPEAL NO. 126/09-10 DATED 28.10.2009 THE PENALTY W AS ALSO CANCELLED. IT WAS FURTHER SUBMITTED THAT VALUE OF CONSTRUCTION WAS TAKEN ON A DHOC BASIS AND THERE WERE NO INACCURATE PARTICULARS FURNISHED BY THE ASSESSEE. THEREFORE, PENALTY IS NOT LEVIABLE. RELIANCE WAS PLACED ON VARIOUS CASE LAWS MENTIONED IN THE WRITTEN SUBMISSION FILED ON BEHALF OF THE ASSESSEE. 4. ON THE OTHER HAND, THE LD. D/R RELIED ON THE ORD ERS OF THE AO AND LD. CIT (A). 5. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A), WE FIND THAT THE ASSESSEE DESERVES TO SUCCEED IN HIS APPEAL. IT IS SEEN THAT VALUATION OF THE CONSTRUCTION WAS ADOPTED ON ADHOC BASIS AND, THEREFORE, IT CANNOT BE SAID THAT ASSESSEE HAS CONCEALED PARTICULARS OF INCOME BY FURNISHING ANY INACCURATE PARTICULARS. ACCORDINGLY, WE HOLD THAT AT LEAST PENALTY CANNOT BE LEVIED. THEREFORE, THE SAME IS CANCELLED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 7. THE ORDER IS PRONOUNCED ON 19.01.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- SHRI RAJENDRA MEHTA, DUNGARPUR. THE ACIT, CENTRAL CIRCLE-1, UDAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 522/JODH/2010) BY ORDER, AR ITAT JAIPUR.