The ITO, Ward-1(3), RAJKOT-GUJARAT V. Shri Smbic P. Nadiyapara, JAMNAGAR

ITA 7/RJT/2014

• Counselvise Citation: 724914 RSA 2014
• Duration Of Justice: 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 28-01-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 02-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT B JHAVERI
• Section: 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NOS. 06 & 07/RJT/2014 ASSESSMENT YEAR : 2006-07 INCOME-TAX OFFICER, WARD-1 (3), JAMNAGAR ( / APPELLANT) SHRI AMBIC P. NADIYAPARA, PROP. OF M/S. AMBIC CORPORATION, 5 TH FLOOR, ANJARIA CHAMBERS, JAMNAGAR PAN : ABXPN 7255 N / RESPONDENT / REVENUE BY DR. JAYANT B. JHAVERI, DR / ASSESSEE BY NONE / DATE OF HEARING 28.01.2014 !'# / DATE OF PRONOUNCEMENT 29.01.2014 / ORDER THESE TWO APPEALS BY THE REVENUE ARE AGAINST TWO SE PARATE ORDERS OF LD. CIT(A)-JAMNAGAR, BOTH DATED 16.07.2012 , CANCELLING THE PENALTY OF RS.46,225/- AND RS. 37,500/- LEVIED BY THE ASSESSING OFFICER U/S 27 1D AND 271E OF THE INCOME-TAX ACT RESPECTIVELY, FOR THE ASSESSMENT YEAR 2006-07. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL, ENGAGED IN THE BUSINESS OF TRADING IN COAL OF VARIOUS TYPE ON WHOL ESALE AND RETAILS BASIS. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS ACCEP TED CASH LOANS EXCEEDING RS.20,000/- FROM AMBICA COAL IN VIOLATION OF THE PR OVISIONS OF SECTION 269SS. HE ACCORDINGLY LEVIED PENALTY OF RS.46,225/- U/S 271D OF THE INCOME-TAX ACT, 1961. 3. THE ASSESSING OFFICER ALSO LEVIED PENALTY U/S 27 1D OF RS.37,500/- FOR REPAYING THE LOAN IN CASH TO SMT. KUKTA P. NADIAPARA I.E. R S.18,500/- ON 02.06.2006 AND RS.18,500/- ON 03.02.2006 WHICH IS IN VIOLATION OF PROVISIONS CONTAINED IN SECTION 269T OF THE ACT. ON THIS REPAYMENT ALSO THE ASSESSI NG OFFICER LEVIED PENALTY OF RS.37,500/- U/S 271D OF THE INCOME-TAX ACT. ON APP EAL BEFORE THE LD. CIT(A), THE ASSESSEE PLEADED THAT LOOKING INTO THE SMALLNESS AN D FREQUENCY OF TRANSACTIONS IN QUESTION, THESE ARE NOT IN THE NATURE OF LOAN OR DE POSIT. HE ACCORDINGLY CANCELLED BOTH THE PENALTIES. AGGRIEVED WITH THE ORDERS OF T HE LD. CIT(A), THE REVENUE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 4. ON THE DATE FIXED FOR HEARING, NONE WAS PRESENT FROM THE SIDE OF THE ASSESSEE. WE, THEREFORE, PROCEED TO DECIDE BOTH THE APPEALS O N THE BASIS ON SUBMISSIONS 2 06 & 07-RJT-2014 SHRI AMBIC P. NADIYAPARA (SMC) MADE BY THE LD. DR AND THE MATERIALS AVAILABLE ON R ECORD. DR. JAYANT B. JHAVERI, DR, APPEARED ON BEHALF OF THE REVENUE, RELYING ON THE R EASONING GIVEN BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER, CONTENDED THAT THE LD. CIT(A) IS NOT CORRECT IN CANCELLING BOTH THE PENALTIES AS THE ASSESSEE FAILE D TO DEMONSTRATE THAT THE TRANSACTIONS IN QUESTION ARE NOT IN THE NATURE OF L OAN OR DEPOSIT BEFORE THE ASSESSING OFFICER. 5. AFTER HEARING LD. DEPARTMENTAL REPRESENTATIVE, I HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINEN T TO NOTE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN COAL OF VARIO US TYPE ON WHOLESALE AND RETAIL BASIS. FROM BOTH THESE PARTIES, I.E. AMBICA COAL AN D SMT. MUKTA P. NADIAPARA, THE ASSESSEE WAS HAVING BUSINESS TRANSACTIONS WHICH IS NOT DISPUTED BY THE LD. DR. I AM, THEREFORE, OF THE VIEW THAT THE LD. CIT(A) IS L EGALLY AND FACTUALLY CORRECT IN ACCEPTING THE EXPLANATION OF THE ASSESSEE THAT THE TRANSACTIONS IN QUESTIONS ARE NOT IN THE NATURE OF LOAN OR DEPOSIT. I, THEREFORE, IN CLINE TO UPHELD THE ORDER OF LD. CIT(A) CANCELLING THE PENALTY OF RS.46,225/- AND RS. 37,50 0/- LEVIED BY THE ASSESSING OFFICER U/S 271D AND 271E OF THE INCOME-TAX ACT RESPECTIVEL Y. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +),/ ORDER DATE: 29.01.2014 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- INCOME-TAX OFFICER, WARD-1 (3), JAMNA GAR 2. / RESPONDENT- SHRI AMBIC P. NADIYAPARA, PROP. OF M /S. AMBIC CORPORATION, 5 TH FLOOR, ANJARIA CHAMBERS, JAMNAGAR 3. ,0,1 * * 2 / CONCERNED CIT, JAMNAGAR 4. * * 2- / CIT(A), JAMNAGAR 5 . 567 1, * 1 #, !$ / DR, ITAT, RAJKOT 6 . 79 :; / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT