Nitya Nand, Gurgaon V. ITO WARD - 3(1), Gurgaon

ITA 6434/DEL/2019

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 0359 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 11-03-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 30-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. K. JAIN
• Assessee Lawyers: DEEPAK KATARIA
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.6434/DEL/2019 Assessment Year 2013-14 Dipesh Singh Legal Heir of Late Nitya Nand 438, Yadav Niwas, Kasan Road Village Manesar, Gurugram Vs. ITO Ward-3(1) Gurugram, Haryana TAN/PAN: ALWPN9240N (Appellant) (Respondent) Appellant by: Shri Deepak Kataria, CA Respondent by: Shri R.K. Jain, Sr.DR Date of hearing: 12 03 2024 Date of pronouncement: 21 03 2024 O R D E R PER PRADIP KUMAR KEDIA-AM: T h e c a p t i o n e d a p p e a l h a s b e e n f i l e d b y t h e a s s e s s ee a g a i n s t t h e o r d e r o f t h e C o m m i s s i o n e r o f In c o m e T a x ( A p p e a l s ) - I I , G u r g a on ( ‘ C IT ( A ) ’ i n s h o r t ) d a t e d 2 8 .0 5 .2 0 1 9 i n r e l a t i o n t o t h e p e n a lt y o r d e r da t e d 3 1 . 0 3 . 2 0 1 8 u n d e r S e c t i o n 2 7 1 ( 1 ) ( c ) o f t h e I n c o m e T a x A c t , 1 9 6 1 ( t h e A c t ) c o n c e r n i n g A Y 2 0 1 3 - 1 4 . 2. T h e s ol i t a r y is s ue i n t he c a pt i o ne d a p p e a l i s j u s ti f i c a t i o n o f i m po s i t i on o f p e na l t y a mo u nt i n g t o R s . 9, 1 1 , 3 4 0/ - on a c c ou n t o f f a i l ur e o f t he a s s e s s e e t o e x p l a i n t he s ou rc e o f c a s h d e po s i t i n t h e ba n k a c c o u nt a m ou n ti n g t o R s . 3 1 , 9 3, 0 0 0/ - . 3. I n t he m a t t e r, t he l d . c o un s e l f o r t h e a s s e s s e e f a i rl y s u b m it s t ha t t he C o- o r d i na t e B e n c h o f t h e I T A T i n IT A N o. 6 5 08 / D el / 2 0 1 6 o rd e r d a t e d 30 . 0 1. 2 0 20 ha s r e j e c t e d t h e e x p la n a t i on o f t he a s s es s e e t ow a rd s s o u rc e o f c a s h d e po s i t a n d d e c li n e d t o i n t e r f e r e w i t h t he o r de r of t h e C I T (A ) . T he l d. c o un s e l f u r t he r s ub m i t s t ha t t he p e na l t y pr oc e ed i n gs u n d e r Se c t i o n 27 1 (1 )( c ) a r e a l l t o ge t h e r o n d i f f e re n t f o ot i n g s a nd i s q u i t e d i s t in c t i n i t s na t u re . I.T.A. No.6434/Del/2019 2 3. 1 A s re ga r d s s o u rc e o f c a s h de p os it s , t he l d . c o uns e l s u b m it s t h a t t he de c e a s e d -a s s e s s e e h a d re c e i ve d s u c h a m o un t f r om i t s r e l a t i ve s . T he a s s e s s e e s u b m it s t h a t i t is t h e m a t t e r o f r e c o r d t ha t c o p y o f I T R a c kn ow l e d ge m e n t o f u n c l e s ho w i n g c a s h w i t h d r a w a l s in th e i r a c c o un t a nd c or r e s po n d i n g d e po s i t i n t h e ba n k a c c o un t of a s s e s se e w a s f u r ni s h e d . T he l d. c o un s e l s u b m i t s th a t t he m o t he r o f t h e de c e a s e d-a s s e s s e e i s n ot t a xa b l e s in c e s he i s a f a r m e r a nd t h e a m ou n t r e c e ive d o n s a l e o f a gr i c ul t u ra l l a n d a p a r t of w hi c h w a s gi ve n to a s s es s e e w he r e a s t he u nc l e of t h e a s s e s s e e h a d f i l e d r e t u r n of i nc o m e a nd t h e ba n k s ta t e m e n t w a s a l s o f ur n is he d . T he l d. c o un s e l t hu s s u bm i t s t h a t wh i l e s u c h e vi d e nc e m i gh t no t ha ve s t o o d w i t h t h e t e s t o f j u di c i a l s c r ut i n y i n t h e q ua n t um pr o c e e d i n g s , t hi s b y i ts e lf w i l l n ot e n t i t l e t h e A O t o i m po s e pe n a l t y un d e r Se c t i o n 2 71 ( 1 ) (c ) a s a m a t t e r o f c ou rs e . T h e b ur de n w h i c h l a y up o n t he a s s e s s e e t ow a r d s s o u r c e o f de p o s i t i s br o a dl y ex pl a i n a b l e w he n s e e n i n t h e c o n t e xt o f pe n a l li a b i l i t y u n d e r S e c t i o n 27 1( 1 ) ( c ) o f t h e A c t . 4. I t i s t r i t e t h a t b u r d e n o f p ro o f i n t he p e na l t y p r oc e e d i n gs va r i e s f r o m t h a t in a n a s s e s s m e n t p r oc e e di n gs . M e r e d i s a l low a nc e o f e xp e nd i t u r e o r e nh a n c e m e n t o f re t u r n e d i nc o m e d oe s n ot i p s o f a c to c a l l f o r i m po s i t i on o f pe n a l t y u nd e r Se c t i on 2 71 (1 ) (c ) of t h e A c t . O n f a c t s , w e n ot e t h a t th e a s s e s s e e ha s ta k e n c on s i s t e n t s t a nd t ow a r d s s o u r c e o f c a s h d e p os i t s f ro m h i s un c l e a n d m o t he r . T he b a nk st a t e m e nt v ou c he s f o r w i t h d r a w a l o f c a s h i n t he ha n ds of r e la t i ve s . T h e as s e s s e e t hu s h a s of f e r e d e xp l a na t i o n in r e s p e c t of s o u rc e o f c a s h dep os i t w h i c h m a y n o t ha ve b e e n a c c e pt e d f o r t he p u r p os e s of q ua n t um p r oce e d in gs b u t s u s t a i ni n g s u c h a d d i t i o n i n t he q ua n t um p r o c e e di n gs c o u ld no t , i n o u r vi e w , w a r r a n t a c o nc l u s i o n t h a t a s s e s s e e h a s c on c e al e d c e r t a i n p a rt i c ul a r s of i n c o m e o r f u r n i s h e d i na c c u ra t e p a rt i c u l a r s o f i nc om e p e r s e . 5. I n t he c i r c u m s t a n c e s e x i s t i n g i n t h e p re s e n t c a se , w e a r e i nc l i n e d t o a gre e w i t h t h e c o nt e n t i o n o n b e ha l f of t h e a s s e ss e e t ha t d is c re t i o n ve s t e d w i t h t h e A O u n de r Se c t io n 27 1 ( 1 ) ( c ) o u ght t o ha ve be e n e x e r c i s e d i n f a vo u r o f t h e a s s e s s e e a n d i m po s i t i o n of p e n a l t y i s n ot j us t i f i e d. I t i s t ri t e t h a t i m p os i t i o n o f pe n a l ty un d e r S e c ti o n 2 71 (1 ) (c ) i s no t a u t om a t i c I.T.A. No.6434/Del/2019 3 a nd s h o u l d no t b e i m p o s e d m e r e l y be c a us e i t i s l a w ful t o d o s o. S om e de g r e e o f pl a u s i b i li t y c a n be a s s i gne d to t he pl e a ra i s e d on be h a l f of the a s s e s s e e . W e a l s o no t e t ha t t h e a s s e s s e e be i n g de c ea s e d , i t m a y n o t be po s s i b l e o n be h a l f o f t h e a s s e s s e e t o p r o v e th e c i rc u m s t a nt i a l f a c t s t o t he hi l t i n t h is i n de p e n d e n t p r o c e e di n g. T h us , a s o f t in s t a nc e de s e r ve s i n t he pr e s e n t c a s e . 6. I n t he l i g h t o f t he m i t i ga t i n g c i rc u m s t a n c e s , t he f i r s t a p p e ll a t e or d e r i s s e t a s i d e a n d t he A O i s di r e c t e d t o r e ve r se a n d d e l e te t h e pe n a l t y i m po s e d i n q ue s t i o n . 7. I n t h e r e s ul t , t h e a p p e a l of t he a s s e s s e e i s a l lo w e d . Order pronounced in the open Court on 21/03/2024 Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /03/2024 Prabhat