SHRI VIKAS GARG, Jaipur V. ITO, Kishangarh

ITA 685/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54296 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-11-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 15-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH, S.M.C., JAIPUR (BEFORE SHRI R.K.GUPTA) ITA NO.685/JP/11 ASSESSMENT YEAR : 2007-08 SHRI VIKAS GARG, VS. THE INCOME TAX OFFICER, KISHANGARH. KISHANGARH. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANISH AGARWAL RESPONDENT BY: SHRI D.K.MEENA DATE OF HEARING : 09.11.2011 DATE OF PRONOUNCEMENT: 18.11.2011 ORDER DATE OF ORDER 18.11.2011 PER R.K.GUPTA,J.M. THIS APPEAL BY ASSESSEE AGAINST CONFIRMING THE LEVY OF PENALTY AT RS.94,729/- LEVIED U/S 271(1)(C) RELATING TO ASSESSMENT YEAR 2007-08. 2. BRIEF FACTS OF THE CASE ARE THAT DURING THE COUR SE OF ASSESSMENT PROCEEDINGS, AO OBSERVED THAT APPELLANT HAS SHOWN SUNDRY CREDIT BALANCE OF R S.3,59,738/- IN THE NAME OF MAYANK FABRICS. AO MADE ENQUIRY U/S 133(6) FROM MAYANK FABRICS AND THEY INTIMATED THAT NO AMOUNT IS DUE TO BE RECEIVED BY THEM FROM APPELLANT AS ON 31.03.2007 . THIS WAS BROUGHT TO THE NOTICE OF APPELLANT BY AO. HE AGREED TO SURRENDER THE AMOUNT OF RS.3,59 ,738/- AND PAID TAX ON THE SAME. PENALTY PROCEEDINGS WERE ALSO INITIATED DURING THE COURSE O F ASSESSMENT AND AFTER CONSIDERING REPLY OF APPELLANT AO LEVIED PENALTY OF RS.94,729/- U/S 271( 1)(C). 3. CIT(A) ALSO CONFIRMED THE ACTION OF THE AO. - 2 - 4. AFTER CONSIDERING THE ORDER OF THE CIT(A) ON WHI CH RELIANCE HAS BEEN PLACED BY LD.D/R AND CONSIDERING THE WRITTEN SUBMISSION FILED BY LD. A/R., I FOUND THAT ASSESSEE DESERVED TO SUCCEED IN HIS APPEAL. IT IS SEEN FROM THE ASSESSME NT ORDER COPY OF WHICH PLACED ON RECORD, THE ASSESSEE SURRENDERED THE AMOUNT OF RS.3,59,738/- FO R TAXATION TO BUY PIECE AND TO AVOID LITIGATION. IT IS FURTHER SEEN THAT AMOUNT OF RS.3, 59,739/- WAS CREDIT BALANCE IN THE NAME OF M/S.MAYANK FABRICS AT THE END OF YEAR. THIS AMOUNT HAS BEEN PAID BY CHEQUE IN SUBSEQUENT YEAR THEREFORE IT CAN NOT BE SAID THAT ASSESSEE HAS FURN ISHED IN-ACCURATE PARTICULAR TO CONCEAL THE INCOME. THOUGH LD.D/R HAS STATED THAT NO EVIDENCE W AS FILED BEFORE A.O. OR BEFORE CIT(A) IN RESPECT TO PAYMENT MADE IN SUBSEQUENT YEAR BUT THE FACT REMAINS THAT IT HAS CATEGORICALLY STATED THAT THE AMOUNT HAS BEEN PAID IN SUBSEQUENT YEAR. M ERELY ON THE BASIS OF STATEMENT OF MAYANK FABRICS ADVERSE INFERENCE DRAWN AGAINST ASSESSEE IS NOT JUSTIFIED. ASSESSEE HAS ALREADY HAS PAID THE TAX ON THE AMOUNT DIFFERENCE JUST AVOID LITIGAT ION, THEREFORE, IN MY VIEW LEVY OF PENALTY IS NOT JUSTIFIED. ACCORDINGLY THE SAME IS CANCELLED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON18.1 1.2011. SD/- (R.K.GUPTA) JUDICIAL MEMBER DATED : 18.11.2011 *BASANT* COPY FORWARDED TO :- 1. SHRI VIKAS GARG, KISHANGARH. 2. THE I.T.O., KISHANGARH. 3. THE CIT, BY ORDER 4. THE CIT(A) 5. THE D.R.,ITAT, JAIPUR. 6. THE GUARD FILE IN ITA NO.685/JP/11 A.R.,ITAT., JAIPUR