JASPAL SINGH SEHGAL, MUMBAI V. ITO 21(2)(1), MUMBAI

ITA 5351/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3142 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: J
• Next Hearing Date: 28-04-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 22-08-2014
• Court: TRIBUNAL
• Department Lawyers: ALOK JOHRI
• Assessee Lawyers: R S BINDRA
• Keywords: Gift; Source of fund

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL J , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ./ ITA NO. 5351 / MUM/20 1 4 ( / ASSESSMENT YEAR : 20 0 9 - 20 10 ) JASPAL SINGH SEHGAL, FLAT NO.501, ASHAR VILLA, PLOT NO.242, NEAR TAMIL SANGHAM HALL, SION(E), MUMBAI - 400022 VS. ITO - 22(2)(1), MUMBAI - 400051 ./ ./ PAN/GIR NO. : A RXPS 3569 C ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : SHRI R.S.BINDRA /REVENUE BY : SHRI ALOK JOHRI / DATE OF HEARING : 28 /0 4 /2016 / DATE OF PRONOUNCEMENT 23/06 /201 6 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN AP PEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MUMBAI, FOR THE ASSESSMENT YEAR 20 0 9 - 20 10 , IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE I.T.ACT . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. IN THIS CASE PENALTY WAS IMPOSE D WITH RESPECT TO ADDITION OF RS.20,65,000/ - UPHELD BY CIT(A) U/S.68 OF I.T.ACT. 3. FROM THE RECORD WE FOUND THAT DURING COURSE OF SCRUTINY ASSESSMENT THE AO FOUND THAT ASSESSEE HAS DEPOSITED VARIOUS CASH IN BANK ACCOUNT FOR WHICH HE COULD NOT EXPLAIN TH E SOURCE, ACCORDINGLY ADDITION OF RS.22,78,695/ - WAS MADE U/S.68/69A OF THE I.T.ACT. AS THE ITA NO. 5351 /1 4 2 ADDITIONS WERE UPHELD BY CIT(A), THE AO ALSO LEVIED PENALTY WITH RESPECT TO THESE DEPOSITS IN THE BANK ACCOUNT. AT THE OUTSET, LD. AR PLACED ON RECORD ORDER OF THE TRIBUNAL, WHEREIN QUANTUM ADDITION HAS BEEN DELETED WITH RESPECT TO OPENING OF CASH BALANCE OF RS.3,86,222/ - WITHDRAWAL FROM AXIS BANK RS.9,73,000/ - AND FROM PMC BANK RS.2,33,100/ - . AS THE ADDITIONS HAVE BEEN DELETED IN QUANTUM APPEAL BY THE TRIBUNAL VIDE ITS ORDER DATED 16 - 3 - 2016, NO PENALTY IS IMPOSABLE FOR SUCH ADDITION. ACCORDINGLY, WE DIRECT THE AO TO DELETE THE PENALTY WITH RESPECT TO THESE ADDITIONS. 4. WE FOUND THAT THE TRIBUNAL IN ITS QUANTUM APPEAL HAS UPHELD PENALTY WITH RESPECT TO ADDITION OF RS .3,55,000/ - AS FRIENDLY LOANS , RS.1,50,000/ - AS GIFT FROM MOTHER AN DRS.3,50,000/ - AS GIFT FROM FATHER. AS THE QUANTUM ADDITION MADE BY THE AO WITH RESPECT TO THESE SOURCES OF INCOME HAVE BEEN UPHELD BY THE TRIBUNAL, WE DIRECT THE AO TO RESTRICT THE PENALT Y ONLY WITH RESPECT TO THESE ADDITIONS AMOUNTING TO RS.8,55,000/ - (RS.8,55,000/ - ). 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 23/06 / 201 6 . SD/ - ( RAM LAL NEGI ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 23/06 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT ITA NO. 5351 /1 4 3 / B Y ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//