SOMCHAND P. JHAKARIA, THANE V. ACIT CIR 1, KALYAN

ITA 5601/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1044 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 15-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M V RAJGURU
• Keywords: Revised return
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI SANDEEP GOSAIN, JM ./ I.T.A. NO. 5601/MUM/2016 ( / ASSESSMENT YEAR: 2009 - 10 ) SHRI SOMCHAN D P. JHAKARIA 501, SITAVIHAR BLDG., A - WING, NEAR DAMANI ESTATE, AGRA ROAD, THANE (W) / VS. ACIT CIRCLE 1, KALYAN ./ ./ PAN/GIR NO. AFRPJ 501 J ( / APPELLANT ) : ( / RESPONDENT ) / A PPELLANT BY : SHRI VIMAL PUNMIYA / RESPONDENT BY : SHRI M. V. RAJGURU / DATE OF HEARING : 02.11.2017 / DATE OF PRONOUNCEMENT : 04.01. 2018 / O R D E R PER SHAMIM YAHYA , A. M.: T HIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 2, THANE DATED 20.06.2016 AND PERTAINS TO THE ASSESSMENT YEAR 2009 - 10. 2. THE GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND LAW , THE LD. CIT(A) ERRED IN CONFIRMING THE PENALTY OF RS.2,29,695/ - INITIATED BY THE LD. ASSESSING OFFICER U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961. 3. BRIEF FACTS OF THE CASE ARE AS UNDER: 2 ITA NO. 5601/MUM/2016 (A.Y. 2009 - 10) SHRI SOMCHAND P. JHAKARIA VS. A CIT THE ASSESSEE HAD FILED HIS RETURN OF INCOME ON 18.02.2010 FOR TH E ASSESSMENT YEAR 2009 - 10 DISCLOSING TOTAL INCOME AT RS.4,72,520/ - . THE SAME WAS PROCESSED U/S. 143(1) OF THE ACT ON 12.01.2011. THE RETURN OF INCOME WAS REVISED SUBSEQUENTLY ON 31.03.2010, DECLARING THE TOTAL INCOME OF RS.11,42,450/ - . A SSESSEE HAS SHOWN TO HAVE DERIVED INCOME FROM BROKERAGE AND FROM OTHER SOURCES, DURING THE YEAR UNDER CONSIDERATION. 4. S UBSEQUENTLY, THE ASSESSMENT WAS REOPENED AND NOTICE WAS ISSUED U /S. 148 ON 06.03.2013 . IN THE ASSESSMENT ORDER , THE ASSESSMENT WAS DONE ON THE INCOME SHOWN IN THE REVISED RETURN AND NO ADDITION WAS MADE. HOWEVER , THE ASSESSING OFFICER INITIATED THE PENALTY FOR NOT DISCLOSING INCOME IN THE ORIGINAL RETURN. 5. IN THIS FACTUAL BACKGROUND , PENALTY PROCE EDINGS WERE INITIATED. ASSESSEE PLEA THAT HE HAD DISCLOSED THE INCOME AND PAID THE TAX S UO MOTO M UCH BEFORE THE RECEIPT OF THE REASSESSMENT NOTICE WAS NOT ACCEPTED AND PENALTY U /S. 271(1)(C) OF THE ACT AMO UNTING TO RS.2,29,695/ - WAS LEVIED. 6. UPON THE ASSESSEE'S APPEAL , THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE PENALTY. HE INTER ALIA DID NOT ACCEPT THE ASSESSEE'S RELIANCE UPON THE HON'BLE BOMBAY HIGH COURT DECISION IN THE CASE OF CIT VS. HIRALAL DOSHI (IN APPEAL NO. 2331 OF 2013 ORDER DATED 09.02.2016). 7. AGAINST THIS ORDER , THE ASSESSEE IS IN A PPEAL BEFORE THE ITAT. 8. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. WE FIND THAT THE ASSESSEE HAS REVISED ITS R ETURN OF INCOME M UCH BEFORE THE ISSUE O F REASSESSMENT NOTICE. THE REASSESSMENT WAS DONE ON THE AMOUNT ALRE ADY SHOWN BY THE ASSESSEE IN REVISED RETURN. HENCE , THERE IS NO CASE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME ON THE PART OF THE ASSESSEE. THE RELIANCE PLACED BY THE ASSESSEE 3 ITA NO. 5601/MUM/2016 (A.Y. 2009 - 10) SHRI SOMCHAND P. JHAKARIA VS. A CIT ON THE DECISION OF THE HON'BLE JURISDICTIONAL H IGH COURT ABOVE IS GERMANE AND SUPPORT S THE CASE OF THE ASSESSEE. ACCORDINGLY , IN THE BACKGROUND OF THE AFORESAID DISCUSSION AND PRECEDENT WE S ET ASIDE THE ORDER S OF THE AUTHORITIES BELOW AND DELETE THE LEVY OF PENALTY. 9. IN THE RESULT , THIS APPEAL BY TH E ASSESSEE STANDS ALLOWED ORDER PRONOUNCED IN THE OPEN COURT ON 04.01.2018 SD/ - SD/ - ( SANDEEP GOSAIN ) (S HAMIM YAHYA ) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 04.01.2018 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI