Jahangir Ali, South 24 Parganas V. I.T.O., Ward-26(3), Kolkata

ITA 635/KOL/2019

AI Insights

The case involves an appeal by Jahangir Ali Molla against the order of the Commissioner of Income Tax (Appeals)-7, Kolkata, which confirmed a penalty imposed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961. The penalty was levied following an assessment for the year 2014-15, where additions were made to the assessee's income on an estimated basis. The Tribunal noted that the penalty was not justified as the additions were not based on any concealment or inaccurate furnishing of income details but were merely estimated additions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128687 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 28-03-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3); 250

Judgement Text

आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता म ें IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA श्री राजपाल यादव, उपाध्यक्ष (कोलकाता क्ष े त्र) एवं डॉ. मनीष बोरड, ल े खा सदस्य क े समक्ष Before SRI RAJPAL YADAV, VICE PRESIDENT & DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A. No.: 635/KOL/2019 Assessment Year: 2014-15 Jahangir Ali Molla...................................................Appellant [PAN: AFVPM 4590 F] Vs. ITO, Ward-26(3), Kolkata......................................Respondent Appearances by: Sh. Swapan Kumar Khamarua, A/R, appeared on behalf of the Assessee. Smt. Ranu Biswas, Addl. CIT (D/R), appeared on behalf of the Revenue. Date of concluding the hearing : January 30 th , 2023 Date of pronouncing the order : February 06 th , 2023 ORDER Per Manish Borad, Accountant Member: This appeal filed by the assessee pertaining to the Assessment Year (in short “AY”) 2014-15 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the “Act”) by Commissioner of Income Tax (Appeals)-7, Kolkata [in I.T.A. No.: 635/KOL/2019 Assessment Year: 2014-15 Jahangir Ali Molla. Page 2 of 3 short ld. “CIT(A)”] dated 22.01.2019 which is arising out of the assessment order framed u/s 143(3) of the Act dated 05.10.2016. 2. The assessee is in appeal before this Tribunal raising the following grounds: “1. For that the Assessing Officer of income tax ward 26(3) passed the illegal order. 2. For that the Assessing Office unjustified claim of Rs. 1,04,657/- for penalty 271(1)C. 3. For that if any other quarries, the petitioner should be produce further information.” 3. The sole grievance of the assessee is that ld. CIT(A) erred in confirming the action of ld. AO levying penalty u/s 271(1)(c) of the Act at Rs. 1,04,657/-. 4. We have heard rival contentions and perused the records placed before us. 5. We notice that additions were made in the hands of the assessee in the assessment proceedings carried out u/s 143(3) of the Act for AY 2014-15 vide order dated 05.10.2016. The assessee is said to be engaged in the construction work. Additions made are mostly on estimate basis which have not been challenged before the higher appellate authorities. Ld. AO levied penalty u/s 271(1)(c) of the Act at Rs. 1,04,657/-. Appeal by the assessee before ld. CIT(A) was dismissed for non-appearance. We, on perusal of the assessment records observe that the impugned penalty is levied on the additions made on estimate basis and this fact stands unrebutted by ld. D/R. Therefore, since it is not a case of concealing the particulars of income or furnishing of inaccurate I.T.A. No.: 635/KOL/2019 Assessment Year: 2014-15 Jahangir Ali Molla. Page 3 of 3 particulars of income and additions made by ld. AO are only on estimate basis, we fail to find any merit in the action of ld. AO imposing penalty on the assessee. We, accordingly delete the penalty of 1,04,657/- levied u/s 271(1)(c) of the Act and allow the effective ground no. 2 raised by the assessee. 6. Other grounds are general in nature which need no adjudication. 7. In the result, the appeal filed by the assessee is allowed. Kolkata, the 06 th February, 2023 Sd/- Sd/- [Rajpal Yadav] [Manish Borad] Vice President Accountant Member Dated: 06.02.2023 Bidhan (P.S.) Copy of the order forwarded to: 1. Jahangir Ali Molla, Vii- Taraganj, Post- Bishira, Dist- South 24 Parganas, West Bengal-743 504. 2. ITO, Ward-26(3), Kolkata. 3. CIT(A)-7, Kolkata. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy// By order Assistant Registrar ITAT, Kolkata Benches Kolkata