ACIT, Jaipur V. RAMESH JHALANI, Jaipur

ITA 644/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99528 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 23-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Section: 2

Judgement Text

1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 644/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ACIT, CIRCLE-1, JAIPUR CUKE VS. SHRI RAMESH JHALANI PROP. M/S JHALANI STONES, 17, GOPOALJI KA RASTA, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ABKPJ 0383L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19 .11.2015 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 30/11/2015. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-I, JAIPUR DATED 04.07.2014 WHEREIN THE REVEN UE HAS TAKEN THE FOLLOWING GROUND: WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE PENALT Y OF RS. 10,36,610/- IMPOSED BY THE AO U/S 271(1)(C). 2 ITA NO. 644/JP/14, ACIT, CIRCLE-I JAIPUR, V. SHRI RAMESH JHALANI 2. AT THE OUTSET THE LD. AR SUBMITTED THAT THE MATT ER HAS BEEN DECIDED IN THE QUANTUM PROCEEDINGS BY THE HONBLE I TAT VIDE ITS ORDER DATED 25.04.2013 IN ITA NO. 107/JP/12 WHERE THE WHO LE OF THE ADDITIONS HAVE BEEN DELETED EXCEPT FOR AN AMOUNT O F RS. 1,27,791/-. REGARDING ADDITION OF RS. 1,27,791/- THE LD. AR SU BMITTED THAT SIMILAR ADDITION ON ACCOUNT OF GOODS GIVEN ON APPROVAL LYIN GWITH THIRD PARTIES WERE MADE IN THE CASE OF SHRI PRABHU DAYAL JHALANI FATHER OF THE ASSESSEE WHICH HAS BEEN DECIDED FAVOURABLY BY THE H ONBLE ITAT VIDE ITS ORDER DATED 25.04.2013. 2.1 THE LD. DR RELIED ON THE ORDER OF LOWER AUTHORI TIES. HOWEVER, HE AGREED THAT ADDITION ON ACCOUNT OF EXCESS STOCK MO UNTING TO RS. 28,95,607/- AND ADDITION ON ACCOUNT OF EXCESS STOC K AMOUNTING TO RS. 26,401/- HAS BEEN DELETED BY THE HONBLE ITAT VIDE ITS ORDER DATED 25.04.2013. 3 ITA NO. 644/JP/14, ACIT, CIRCLE-I JAIPUR, V. SHRI RAMESH JHALANI 2.2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FIRSTLY IT IS NOTED THAT COOR DINATE BENCH OF ITAT VIDE ITS ORDER DATED 25.04.2013 HAS DELETED THE ADD ITION OF RS. 28,95,609/- ON ACCOUNT OF EXCESS STOCK AND RS. 26,4 01/- ON ACCOUNT OF EXCESS CASH . IN LIGHT OF DELETION OF ADDITIONS I N QUANTUM PROCEEDINGS THE LEVY OF CONSEQUENT PENALTY DOES NOT SURVIVE HE NCE THE SAME IS DELETED. 2.3 REGARDING PENALTY LEVIED AN ADDITION OF RS. 1, 27,791/- ON ACCOUNT OF VALUE OF STOCK GIVEN TO THIRD PARTIES ON APPROVAL, THE FINDING OF THE LD. CIT(A) IS NOTED WITH APPROVAL AS UNDER: SO FAR AS THE PENALTY LEVIED ON THE ADDITION OF RS . 1,27,791/- IS CONCERNED, IT IS NOTED THAT THE ADDITION WAS MADE ON THE PRESUMPTION THAT THE STOCK WAS WITH THE THIRD PARTY ON APPROV AL BASIS. HOWEVER, THERE IS NO CONCRETE EVIDENCE IN THIS RESPECT SO AS TO ATTRACT THE LEVY OF PENALTY U/S 271(1)(C). IT IS FURTHER NOTED THAT TH E ADDITION MADE ON SIMILAR GROUND IN THE CASE OF SHRI P.D. JHALANI, FA THER OF THE APPELLANT 4 ITA NO. 644/JP/14, ACIT, CIRCLE-I JAIPUR, V. SHRI RAMESH JHALANI HAS BEEN DELETED BY THE HONBLE ITAT. HENCE, THE LEVY OF PENALTY ON THIS AMOUNT ALSO DOES NOT APPEAR TO BE JUSTIFIED A ND IS, ACCORDINGLY, CANCELLED. 2.4 WE ARE IN AGREEMENT WITH THE FINDING OF THE LD. CIT(A) AND DO NOT LIKE TO INTERFERE WITH THE SAME. HENCE THE LEVY OF PENALTY ON ADDITION OF RS.1,27,791/- DOES NOT SURVIVE AND IS DELETED. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON /11/2015 . SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 30 /11 /2015 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-1, JAIPUR 2. THE RESPONDENT- SHRI RAMESHJHALANI 3. THE CIT(A).I, JAIPUR 4. THE CIT-I JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.644/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR. 5