SMT. BASANTI DEVI AGARWAL, Jaipur V. ITO, Jaipur

ITA 696/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54287 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 27 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: 08-11-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 22-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Gift; Revised return
• Section: 148

Judgement Text

1 ITA 696-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER ITA NO. 696/JP/2011 ASSTT. YEAR : 2003-04. SMT. BASANTI DEVI AGARWAL, VS. THE INCOME-TAX OFF ICER, 34, RAGHU VIHAR, MAHARANI FARM, WARD 6(3), DURGAPURA, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJEEV SOGANI RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 08.11.2011. DATE OF PRONOUNCEMENT : 18.11.2011 ORDER DATE OF ORDER : 18/11/2011. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2003-04. 2. THE ASSESSEE IS OBJECTING IN CONFIRMING THE LEVY OF PENALTY OF RS. 44,708/- LEVIED BY AO UNDER SECTION 271(1)(C) RELATING TO ASSESSMEN T YEAR 2003-04. 3. THE ASSESSEE FILED HER RETURN OF INCOME ON 29.09 .2003 DECLARING AN INCOME OF RS. 1,25,792/-. THEREAFTER, THE RETURN WAS REVISED ON 19.7.2005 BY WHICH AN AMOUNT OF RS. 1,50,000/- RECEIVED AS GIFT FROM ONE SHRI DHARMENDR A KUMAR AGARWAL WAS OFFERED FOR TAXATION. THEREAFTER, NOTICE UNDER SECTION 148 WAS ISSUED TO ASSESSEE ON 31.3.2008. THIS NOTICE PERHAPS WAS ISSUED TO REGULARIZE THE REVISED RETURN. THEREAFTER THE ASSESSMENT WAS 2 COMPLETED ON THE BASIS OF REVISED RETURN. PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) WAS ALSO INITIATED. THE ASSESSEE WAS GIVEN A SHOWN CAUSE NOTICE THAT WHY PENALTY ON THE AMOUNT OF RS. 1,50,000/- BE NOT IMPOSED AS THE PERS ON FROM WHOM THE GIFT WAS RECEIVED RELATES TO SHRI B.C. PUROHIT GROUP. DETAILED REPLY WAS FILED BY WHICH IT WAS STATED THAT RETURN WAS REVISED VOLUNTARILY, THEREFORE, NO PENAL TY CAN BE LEVIED. HOWEVER, THE AO WAS NOT SATISFIED WITH THE EXPLANATION AS IN HIS VIEW T HE AMOUNT OF RS. 1,50,000/- SHOWN UNDER THE GARB OF GIFT IS NOT GENUINE AS THE PERSON WHO GIFTED THE AMOUNT BELONGS TO B.C. PUROHIT GROUP, WHO IS INDULGING IN PROVIDING BOGUS ENTRIES TO VARIOUS PERSONS. THE LD. CIT (A) ALSO CONFIRMED THE LEVY OF PENALTY. 4. AFTER CONSIDERING THE ORDERS OF AUTHORITIES BELO W AND WRITTEN SUBMISSIONS, I FIND THAT ON THE FACTS OF THE PRESENT CASE NO PENALTY CA N BE LEVIED. IT IS A MATTER OF FACT THAT ASSESSEE FILED REVISED RETURN VOLUNTARILY AND THERE AFTER NOTICE UNDER SECTION 148 WAS ISSUED JUST TO REGULARIZE THE REVISED RETURN AND AS SESSMENT WAS COMPLETED ON THE BASIS OF REVISED RETURN. THEREFORE, THIS IS NOT A CASE THAT ASSESSEE HAS CONCEALED ANY PARTICULARS OF INCOME. THE PERSON FROM WHOM GIFT WAS SHOWN WHETHE R RELATES TO B.C. PUROHIT GROUP OR NOT IS NOT RELEVANT HERE. ASSESSEE HIMSELF HAS OFF ERED THE AMOUNT OF RS. 1,50,000/- RECEIVED AS GIFT IN REVISED RETURN FILED VOLUNTARIL Y. THEREFORE, THIS IS NOT A CASE OF LEVY OF PENALTY AT ALL. ACCORDINGLY, I CANCEL THE LEVY OF PENALTY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 18. 11.2011. SD/- ( R.K. GUPTA ) JUDICIAL MEMBER JAIPUR, 3 D/- COPY FORWARDED TO :- SMT. BASANTI DEVI AGARWAL, JAIPUR. THE ITO WARD 6(3), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 696/JP/2011) BY ORDER, AR ITAT JAIPUR.