Shri Prakashbhai P. Nariya, JAMNAGAR V. The Income Tax Officer, Ward-1(3), JAMNAGAR

ITA 569/RJT/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2288 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-12-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 07-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - C OURT AT AHMEDABAD] SHRI PRAKASHBHAI P. NARIYA, 2 - SHANTI NAGAR SOCIETY, KRISHNA NAGAR, MAIN ROAD, JAMNAGAR PAN: ADPPN5921K (APPELLANT) VS INCOME TAX OFFICER, WARD - 1(3), JAMNAGAR (RESPON DENT) REVENUE BY : S H RI C.S. ANJARIA , D . R. ASSESSEE BY: S H RI CHETAN AGARWAL , A.R. DATE OF HEARING : 04 - 12 - 2 015 DATE OF PRONOUNCEMENT : 12 - 0 2 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S ASSESSEE S APPEAL FOR A.Y. 2010 - 11 , AR ISES FROM ORDER OF THE CIT(A), JAMNAGAR DATED 11 - 08 - 2014 IN APPEAL NO. I T A NO . 569 / RJT /20 14 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 569 /RJT /20 14 A.Y. 2010 - 11 PAGE NO SHRI PRAKASH P. NARIYA VS. ITO 2 CIT(A) / JAM/95 /13 - 14/516 , IN PROCEEDINGS UNDER SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASS ESSEE S SOLE SUBSTANTIVE GROUND RAISED IN THE INSTANT APPEAL CHALLENGES SECTION 271(1)(C) PENALTY OF RS. 42,375/ - AS IMPOSED BY THE ASSESSING OFFICER AND UPHELD IN THE LOWER APPELLATE ORDER. FACTS OF THE CASE ARE I N A NARROW COMPASS. THE ASSESSEE IS PARTNER OF A FIRM AND ALSO DERIVES JOB WORK INC OME. HE FILED HIS RETURN ON 08 - 01 - 2011 STATING INCOME OF RS. 2,22,410/ - . THE ASSESSING OFFICER TOOK UP SCRUTINY. HE NOTICED ASSESSEE S SAVING BANK ACCOUNT WITH ICICI BANK C OMPRISING OF CASH/TRANSFERS DEPOSITS OF RS . 49,65,164/ - . HE SOUGHT TO INVOK E SECTION 68 OF THE ACT FOR TREATING THE SAME AS UNEXPLAINED CASH CREDIT. THE ASSESSEE FILED HIS RETURN SUBMISSION ON 17 - 12 - 2012 WORKING OUT NET PROFIT @ 5% BY TREATING THE ENTIRE AMOUNT AS TURNOVER THEREBY COMPUTING A SUM OF RS. 2,44,503/ - . THE ASSESSING OFFICER ACCEPTED THIS COMPUTATION AS FRAMED A REGULAR ASSESSMENT ON 26 - 12 - 2012. HE F URTHER INITIATED SECTION 271(1)(C) PENALTY ALLEGING CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. QUANTUM PROCEEDINGS ATTAINED FINALITY AT THIS STAGE. 3. THE ASSESSI NG OFFICER RESUMED WITH THE IMPU G N ED PENALTY PROCEEDINGS. THE ASSSESSE PLEADED TO HAVE AGREED FOR THE ABOVE STA T ED NET PROFIT COMPUTATION IN PURSUIT OF PEACE OF MIND AND TO AVOID UNNECESSARY LITIGATION. THE ASSESSING OFFICER DID NOT AGREE. HE INTER ALIA OBSERVED THAT THE ABOVE STATED DETECTION OF SAVING ACCOUNT I.T.A NO. 569 /RJT /20 14 A.Y. 2010 - 11 PAGE NO SHRI PRAKASH P. NARIYA VS. ITO 3 DEPOSITS, NONE DISCLOSURE OF PARTICULARS OF INCOME TRULY AND FULLY, FAILURE ON ASSESSEE S PART BY WAY OF SATISFACTORY EXPLANATION AND ABSENCE OF RECONCILIATION IN HIS ACTION LED TO THE CONCLUSION THAT THE SAME IS AN INSTANCE CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME U/S. 271(1)(C) OF THE ACT. ALL THIS DISCUSSION RESULTED IN THE IMPU GNED PENALTY OF RS. 42,375/ - BEING IMPOSED. 4. THE CIT(A) CONFIRMS ASSESSING OFFICER S ACTION BY A TOTALLY NON - SPEAKING ORDER. 5. WE HAVE HEAR D BOTH THE PART IES. CASE FILE PERUSED. IT EMI NATES THAT THE ASSESSEE S STAND FROM VERY BEGINNING HAS BEEN T HAT A SAVING BANK ACCOUNT (SUPRA) ALREADY STOOD REFLECTED IN REGULAR BOOKS O F ACCOUNT MAINTAINED, CASH BOOK AS WELL AS IN HIS REGULAR RETURN FILED U/S. 139(1) OF THE ACT. THE REVENUE FAILS TO REBUT THIS FACTUAL POSITION. WE OBSE R VE IN THIS BACKDROP OF FAC TS AND CIRCUMSTANCES THAT THE AUTHORITIES BELOW HAVE INVOKED THE IMPUGNED PENALTY WITHOUT REJECTING THIS SPECIFIC PLEA. WE FURTHER ARE OF THE VIEW THAT ONCE THE ASSESSEE HAS ALREA DY DISCLOSED ALL PARTICULARS OF HIS BANK ACCOUNT, THE MERE FACT THAT HE LAT ER ON DECLARED AN ESTIMATED 5% AMOUNT AS NET PROFIT DOES NOT AMOUNT TO CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. WE ACCEPT ASSESSEE S SOLE SUBSTANTIVE GROUND ACCORDINGLY. THE IMPUGNED PENALTY STANDS DELETED. I.T.A NO. 569 /RJT /20 14 A.Y. 2010 - 11 PAGE NO SHRI PRAKASH P. NARIYA VS. ITO 4 6. THIS ASSESSEE S AP PEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 12 - 02 - 201 6 SD/ - SD/ - (PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 12 /02 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT