ITO, Jaipur V. SURAJ NARAYAN KHATORIA, Jaipur

ITA 645/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99530 (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

Judgement Text

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. 645/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ITO, WARD 1(3), JAIPUR CUKE VS. SHRI SURAJ NARAIN KHATORIA TRIPOLIA BAZAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ABZPK 1639F 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 03.07.2014 WHEREIN THE REVEN UE HAS TAKEN THE FOLLOWING GROUND OF APPEAL: WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE PENAL TY U/S 271(1)(C) OF RS. 14,09,005/- IMPOSED BY THE AO. 2 ITA NO/ 645/JP/14 ITO, WARD 1(3), JAIPUR VS. SHRI SURAJ NARAIN KHAT ORIA 2. AT THE OUTSET THE LD. AR SUBMITTED THAT THE MATT ER IN QUANTUM PROCEEDINGS HAS BEEN DECIDED IN FAVOUR OF THE ASSES SEE BY THE HONBLE BENCH VIDE ITS ORDER DATED 27.05.2013 IN ITA NO. 1 043/JP/11 EXCEPT FOR DISALLOWANCE OF RS. 74,923/- ONLY. FURTHER LD. AR SUBMITTED THAT THE PENALTY ON ADDITION OF RS.74,923/- HAS BEEN RIGHTLY DELETED BY THE LD. CIT(A) GIVEN THE FACTS AND CIRCUMSTANCES OF THE CAS E. 2.1 THE DR RELIED ON THE ORDER OF THE ASSESSING OF FICER. HOWEVER, AS FAR AS THE PENALTY LEVIED BY THE AO ON ACCOUNT OF SHORT TERM CAPITAL GAINS AMOUNTING TO RS. 42 LAKHS, THE LD. DR AGREED THAT IN THE QUANTUM PROCEEDINGS, THE ADDITION HAS ALREADY BEEN DELETE D BY THE HONBLE TRIBUNAL. 2.2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IT IS AN ADMITTED FACT THAT THE ADDITION OF RS. 42 LAKHS ON ACCOUNT OF SHORT TERM CAPITAL GAINS HAS B EEN DELETED BY THE COORDINATE BENCH IN ASSESSEES OWN CASE IN ITA NO.1 043/JP/11 DATED 27.05.2013, HENCE THE PENALTY ON THE SAID ADDITION DOES NOT STAND AND HENCE DELETED. 3 ITA NO/ 645/JP/14 ITO, WARD 1(3), JAIPUR VS. SHRI SURAJ NARAIN KHAT ORIA 3. REGARDING PENALTY IN RELATION TO DISALLOWANCE O F EXPENSES OF RS. 74,923/- IS CONCERNED, THE COORDINATE BENCH HAS CON FIRMED THE FINDING OF THE LD. CIT(A) IN THE QUANTUM PROCEEDINGS. IN T HE CONTEST OF PENALTY PROCEEDINGS, THE LD. CIT(A) HAS GIVEN THE FOLLOWING FINDINGS WHICH IS REPRODUCED AS UNDER: THE REMAINING AMOUNT OF RS.74,923/- RELATES TO ESTI MATED DISALLOWANCE OUT OF EXPENSES INCURRED BY THE APPELLANT ON BANK C HARGES, FINANCE, BROKERAGE, CAR INSURANCE ETC. THE DISALLOWANCE OUT OF THESE EXPENSES ON ESTIMATE BASIS DOES NOT THE AMOUNT TO CONCEALMENT O F INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. IN VIEW OF THESE FACTS THE LEVY OF PENALTY BY THE AO DOES NOT APPEARS TO BE J USTIFIED AND ACCORDINGLY CANCELLED. 3.1 WE AGREE WITH THE ORDER OF LD. CIT(A) THAT WHE RE THE DISALLOWANCE OF THE EXPENSES HAVE BEEN DONE ON AN ESTIMATE BASI S, THE SAME CANNOT FROM THE BASIS FOR LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. HENCE, THE PENALTY ON ADDITION OF RS. 74,923/- DOES NOT STAND AND HENCE DELETED. 4 ITA NO/ 645/JP/14 ITO, WARD 1(3), JAIPUR VS. SHRI SURAJ NARAIN KHAT ORIA IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. I ORDER PRONOUNCED IN THE OPEN COURT ON 30/11.20 15 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-5, JAIPUR 2. THE RESPONDENT- SHRI VIMAL GUPTA 3. THE CIT(A).II, JAIPUR 4. THE CIT-I JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.669/JP/13) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR