NARAYAN MANNAPPA KOTIAN, KALYAN V. ITO WD 3(2), KALYAN

ITA 6188/MUM/2013

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0720 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2000-2001
• Appeal Filed On: 22-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T A KHAN
• Section: 142(1); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ITA NO.6188/M/2013 ASSESSMENT YEAR: 2000-01 SHRI NARAYAN MANNAPPA KOTIAN, C/O. ADV. N.A. KULKARNI, 1 ST FLOOR, WADAL BUILDING, NEAR DNSB BANK, DOMBIVLI (EAST) PAN: ABHPK3777E VS. INCOME TAX OFFICER, WARD 3(2), RANI MENTION, 2 ND FLOOR, MURBAD ROAD, KALYAN (W), THANE, MAHARASHTRA. (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI T.A. KHAN, D.R. DATE OF HEARING : 05.12.2017 DATE OF PRONOUNCEMENT : 12.01.2018 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 23.08.2013 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2000-01. 2. THE ONLY EFFECTIVE GROUND IS AGAINST CONFIRMING THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT. THE SHORT FACT S OF THE CASE ARE AS UNDER: ITA NO.6188/M/2013 SHRI NARAYAN MANNAPPA KOTIAN 2 ON 14.03.2001 THE ASSESSEE FILED A LETTER BEFORE TH E ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) REVISIN G THE FIGURE OF ADDITIONAL INCOME DECLARED AT RS.19,03,800/- AS UND ER: TOTAL CALCULATED AMOUNT RS.22,06,200/- ADD: THE COST OF THE LAND OF HIS BUNGALOW NEEDS TO BE ADDED AT THE RATE OF RS.200/- PER SQ.YD/ FOR 217 SQ. YDS RS. 43,400 /- RS.22,49,600/- LESS: AMOUNT TO BE REDUCED FOR FIVE FLATS FROM NITYANAND CYAHA SOC. 5 FLATS 2258 SQ. FT. * 100 (ALLOTTED TO GOVT. OF MAH. FOR WEAKER RS. 2,25,8 00/- SECTIONS) RS.20,23,800/- LESS: THE DIFFERENCE ON ACCOUNT OF LAND TO BE DEDUCTED RS. 1,20,000/- RS.19,03,800/- THE ASSESSEE, HOWEVER, DID NOT FILE ANY RETURN OF I NCOME OFFERING THE ABOVE MENTIONED INCOME FOR TAXATION. NOTICE U/S 148 OF THE ACT DATED 05.03.2003 WAS ISSUED AND SERVED ON T HE ASSESSEE ON 06.03.2003. ON 01.04.2003, THE ASSESSEE FILED A LE TTER BEFORE THE AO REQUESTING FOR COPIES OF DOCUMENTS/STATEMENT RECORD ED DURING THE COURSE OF SURVEY. THE SAME WERE SUPPLIED TO THE AS SESSEE ON 07.04.2003. STILL NO RETURN OF INCOME WAS FILED BY THE ASSESSEE. SUBSEQUENTLY, NOTICES U/S 143(2) & 142(1) WERE ISSU ED AND THE ASSESSMENT WAS COMPLETED AFTER MAKING THE ADDITION OF RS.19,03,800/-, WHICH THE ASSESSEE HAD HIMSELF DISC LOSED DURING THE COURSE OF SURVEY AND SUBSEQUENTLY BY FILING THE LET TER BEFORE THE AO. ITA NO.6188/M/2013 SHRI NARAYAN MANNAPPA KOTIAN 3 THE SHOW CAUSE NOTICE WAS GIVEN AND AFTER SHOW CAUS E NOTICE THE AO HAS LEVIED THE PENALTY OF RS.6,28,254/-. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. AFTER GOING THROUGH THE RECORD, WE FIND THAT LD. CIT(A) HAS RIGHTLY DEC IDED THE APPEAL AND CONFIRMED THE PENALTY BY OBSERVING AS UNDER: 11. I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE FACTS OF THE CASE. THE APPELLANT HIMSELF HAD DECLARED ADDITIONAL INCOM E DURING THE COURSE OF SURVEY AT HIS PREMISES ON 13.03.2001, WHICH WAS ULT IMATELY AGREED AT RS. 19,03,800/- VIDE HIS LETTER DATED 14.03.2001 FILED BEFORE THE A.O. THE CONTENTION OF THE APPELLANT THAT THE DECLARED INCOM E PERTAINED TO ASSESSMENT YEAR 2001-02 AND NOT TO THE ASSESSMENT YEAR 2000-01 , IN WHICH THE A.O. HAS ASSESSED THE SAME, IS WITHOUT ANY BASIS BECAUSE THE APPELLANT HAS NEITHER OFFERED THIS INCOME FOR TAXATION IN AY 2000-01 NOR IN AY2001-02. MOREOVER, NOTHING HAS BEEN BROUGHT ON RECORD BY THE APPELLANT TO SHOW THAT THE INCOME DECLARED BY HIM DURING THE COURSE OF SURVEY AND SUB SEQUENTLY BY FILING A LETTER ON NEXT DAY, HAD NOT BEEN EARNED BY HIM. STILL THE AP PELLANT DID NOT FILE ANY RETURN OF INCOME OFFERING THE SAME FOR TAXATION. THE AO WAS, THEREFORE, RIGHT IN IMPOSING PENALTY U/S 271(1)(C) OF THE I.T. ACT, IN RESPECT O F THIS ADMITTED INCOME WHICH WAS NOT OFFERED FOR TAXATION EVEN AFTER ISSUE OF NOTICE U/S. 148 OF THE I.T. ACT. THEREFORE, PENALTY AMOUNTING TO RS.6,28,254/- U/S. 271(1)(C) OF THE I.T. ACT, IS CONFIRMED. 4. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12.01.2018. SD/- SD/- (G. MANJUNATHA) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 12.01.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.