Shashank Gupta, Muzaffarnagar V. ITO, Ward-2(3), Muzaffarnagar

ITA 6446/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8401 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 08-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PGC VS ITO WARD MUZAFFARNAGAR
• Assessee Lawyers: ANIL JAIN ADV SHRI S L ANURAGI
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 6446/DEL/2018 ASSESSMENT YEAR: 2014-15 SHASHANK GUPTA 3 D, VAKIL ROAD, NEW MANDI, MUZAFFARNAGAR, UTTAR PRADESH. PAN NO. ABYPG3776C VS ITO WARD 2(3) MUZAFFARNAGAR. APPELLANT RESPONDENT ASSESSEE BY SH. ANIL JAIN, ADV. REVENUE BY SHRI S.L. ANURAGI, SR. DR ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(APPEALS), MUZAFFARNAGAR DATED 28.08.2018. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT T HE CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY IMPOSED OF RS. 2, 15,500/- U/S 271(1)(C) OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER COMPLETED THE ASSESSMENT FOR THE YEAR UNDER CONSIDE RATION OF THE ASSESSEE AT AN INCOME OF RS. 11,84,740/- BY MAKING AN ADDITION OF RS. 6,89,655/- ON ACCOUNT OF SURRENDER OF SALE A MOUNT OF THE ASSESSEE IN PLACE OF RETURNED INCOME OF RS. 4,95,08 0/-. DATE OF HEARING 11.04.2019 DATE OF PRONOUNCEMENT 12.04.2019 2 ITA NOS. 6446/DE L/2018 4. THEREAFTER, THE AO LEVIED PENALTY U/S 271(1)(C) OF THE ACT OF RS. 2,15,500/- FOR CONCEALMENT/FURNISHING INACCURAT E PARTICULARS OF INCOME. 5. ON APPEAL, LD. CIT(A) CONFIRMED THE ACTION OF TH E ASSESSING OFFICER. 6. THE AR OF THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN THE CASE OF DEEPTI AGGARWAL VS. ITO, CHARU AGGARWAL VS. ITO IN ITA NOS. 1301 & 1302/DEL/2018 ORDER DATED 10.09.2018 PASSED IN TH E AY 2014- 15. 7. THE DR RELIED ON THE ORDERS OF THE LOWER AUTHORI TIES. I FIND THAT THE TRIBUNAL IN THE CASE OF DEEPTI AGGARWAL, C HARU AGGARWAL (SUPRA) HAS HELD AS UNDER: 4. I HAVE GIVEN THE THOUGHTFUL CONSIDERATION TO T HE ORDERS OF THE AUTHORITIES BELOW. I FIND THAT IN THE COMPU TATION OF INCOME THE ASSESSEE HAS DULY DISCLOSED ALL THE PART ICULARS OF HER INCOME AND UNDER THE HEAD INCOME WITH FULL EXEMPTION THE ASSESSEE HAS CLAIMED DIVIDEND INCOME AS EXEMPT AND ALSO LONG TERM CAPITAL GAIN ON WHICH STT IS PAID WHICH IS ALSO EXEMPT FROM TAX. I FURTHER FIND THAT DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDING S THE AO HAS PROCEEDED BY THE ASSUMPTION THAT THE SHARES PURCHASED AND SOLD BY THE ASSESSEE COMES INTO THE CATEGORY OF PENNY STOCK COMPANIES. THE AO HAS DRAW N SUPPORT FROM OUTSIDE INFORMATION. IN MY CONSIDERED OPINION THE SURRENDER OF EXEMPTION BY THE ASSESSEE ON REPETITIVE QUERIES WOULD NOT AMOUNT TO FURNISHING O F INACCURATE PARTICULARS OF INCOME. THE ASSESSEE HAS CLAIMED EXEMPTION AS PER THE PROVISIONS OF LAW, THO UGH 3 ITA NOS. 6446/DE L/2018 SURRENDERED DURING THE COURSE OF ASSESSMENT PROCEED INGS. IN MY CONSIDERED OPINION, ON THE FACTS OF THE CASE, NO PENALTY IS LEVIABLE U/S 271(1)(C) OF THE ACT. I AC CORDINGLY SET ASIDE THE FINDING OF THE LD. CIT(A) AND DIRECT THE AO TO DELETE THE PENALTY SO LEVIED. 8. FACTS BEING IDENTICAL. RESPECTFULLY FOLLOWING T HE PRECEDENT, I SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND D ELETE THE LEVY OF PENALTY OF RS. 2,15,500/-. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/04/2019 SD/- (N.S. SAINI) ACCOUNTANT MEMBER DATED: 12.04.2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NOS. 6446/DE L/2018 DATE OF DICTATION 11/04/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12/04/19 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 12.4.19 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 12.4.19 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 12.4.19 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 12.4 .19 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER