TEJSINGH BAID LEGAL HEIR OF LATE SHRI MANSING BAID, MUMBAI V. ITO WD 14(3)(1), MUMBAI

ITA 5254/MUM/2010

• Counselvise Citation: 525419914 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2001-2002
• Appeal Filed On: 25-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOLI SRINIWAS RAO
• Assessee Lawyers: D C JAIN
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH: MUMBAI BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.5254/MUM/2010 (ASSESSMENT YEAR: 2001-02) TEJSINGH BAID LEGAL HEIR OF LATE SHRI MANSINGH BAID, HANUT NIWAS, GR. FLOOR, DADABHAI CROSS ROAD NO.2, ADNHERI (WEST), MUMBAI -400 058 ....... APPELLANT VS ITO14(3)(1), 6 TH FLOOR, EARNEST HOUSE, NARIMAN POINT, MUMBAI -400 021 ..... RESPONDENT PAN: AAAPB 9794 Q APPELLANT BY: SHRI D.C. JAIN RESPONDENT BY: SHRI GOLI SRINIWAS RAO DATE OF HEARING: 23.08.2011 DATE OF PRONOUNCEMENT: 30.08.2011 O R D E R PER R.S. PADVEKAR, JM: IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-25, MUMBAI DATED 26.03.2010 FOR THE A.Y. 2001-02. THE ASSESSEE HAS TAKEN THE FOLLOWING EFFECTIVE GROU NDS:- I. THE LD CIT (A) HAS ERRED IN CONFIRMING PART OF THE PENALTY LEVIED U/S.271(1)(C) TO THE TUNE OF LEVY @ 100% ON GIFT AMOUNTING TO ` 5,36,594/-, WITHOUT PROPERLY APPRECIATING FACTS OF THE CASE. 2. THE ABOVE SAID ORDER DT. 26.03.2010 WAS RECEIVED BY THE ASSESSEE ON OUR ABOUT 29.04.2010. PRIOR TO THE REC EIPT OF ITA 5254/MUM/2010 TEJSINGH BAID L. H. OF LATE SHRI MANSINGH BAID 2 THE SAID ORDER, THE ASSESSEE HAD ALSO FILED WITH CI T (A)S OFFICE ON 26.04.2010, THE ORDER DT. 13.04.2010, OF HONBLE ITAT, K BENCH, MUMBAI, RELATED TO QUANTUM APPEAL, WHEREIN ADDITION FOR THE DISPUTED GIFT OF ` 5,36,594/-, WAS DELETED. AND AS SUCH NO PENALTY CAN BE LEVIED ON T HE SAID GIFT AMOUNT OF ` 5,36,594/-. HOWEVER, THE LD. CIT (A), HAS ALSO ERRED BY NOT GR ANTING FURTHER HEARING TO THE ASSESSEES APPLICATION, TOGE THER WITH ITAT ORDER FOR THE QUANTUM APPEAL, FILED TO HIS OFF ICE ON 26.04.2010. 2. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL SUBM ITS THAT THE QUANTUM ADDITION, WHICH WAS SUBJECTED TO THE PENALT Y U/S.271(1)(C) HAS BEEN DELETED BY THE TRIBUNAL AND HENCE, THE PEN ALTY DOES NOT SURVIVE. THE LD. COUNSEL ALSO FILED COPY OF THE TR IBUNAL ORDER IN THE ASSESSEES OWN CASE IN ITA NO.740/MUM/2006 DATED 13 .04.2010. WE HAVE ALSO HEARD THE LD. D.R. WHO FAIRLY CONCEDED TH AT THE QUANTUM ADDITION IS DELETED BY THE TRIBUNAL. THE ASSESSEE S CASE WAS COMPLETED U/S.143(3) OF THE ACT AND THE A.O. MADE T HE ADDITION TO THE EXTENT OF ` 15,78,603/-. THE A.O. INITIATED THE PENALTY PROCE EDINGS AND LEVIED THE PENALTY U/S.271(1)(C) ON FOLLOWING ADDITIONS I) GIFT RECEIPT FROM SHRI KANWALJIT SINGH ` 5,36,594/- II) UNSECURED LOANS ` 6,74,550/- III) CASH DEPOSIT WITH BANK ` 1,90,000/- IT APPEARS THAT SAVE THE ADDITION IN RESPECT OF GIF T OF ` 5,36,594/- THE OTHER ADDITIONS WERE DELETED BY THE LD. CIT (A). T HE ADDITION IN RESPECT OF THE GIFT OF INSURGENT BONDS OF ` 5,36,594/- WAS DELETED BY THE TRIBUNAL AS THE ADDITIONS ON WHICH THE PENALTY IS BASED IS DELETED HENCE, NOW, THE PENALTY DOES NOT SURVIVE. ITA 5254/MUM/2010 TEJSINGH BAID L. H. OF LATE SHRI MANSINGH BAID 3 3. WE, ACCORDINGLY, ALLOW THE APPEAL FILED BY THE A SSESSEE AND DELETE THE PENALTY LEVIED ON THE GIFT OF ` 5,36,594/-. 4. IN THE RESULT, ASSESSEES APPEALS IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 30TH AUGUST 2011. SD/- SD/- ( PRAMOD KUMAR ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 30TH AUGUST 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)25, MUMBAI. 4) THE CIT 14, MUMBAI. 5) THE D.R. H BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN ITA 5254/MUM/2010 TEJSINGH BAID L. H. OF LATE SHRI MANSINGH BAID 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 23.08.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 24.08.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER