Rajiv Jain, Delhi V. ACIT Circle-35(1), New Delhi

ITA 7273/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6760 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 03-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 274; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC-2 BENCH, NEW DELH I BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.7273/DEL/2019 [A.Y 2010-11] RAJIV JAIN VS. ACIT LSC NO.-105-107, VARDHMAN CIRCLE 35 (1) CITY CENTRE, NEAR SHAKTI NEW DELHI NAGAR SUBWAY, DELHI-110007 APPELLANT BY : SH. LALIT MOHAN, CA RESPONDENT BY : MS. RAKHI VIMAL, SR. DR DATE OF HEARING : 14.09.2020 DATE OF PRONOUNCEMENT : 15. 09.2020 ORDER PER N. K. BILLAIYA , AM : 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A)-12, NEW DELHI DATED 28.06.2019 PERTAINING TO A.Y. 2010-11. 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSES SEE IS THAT THE CIT(A) ERRED IN UPHOLDING THE PENALTY LEVIED U/S. 2 71 (1) (C) OF THE ACT ON THIS STRENGTH OF A NOTICE WHICH DID NOT SPECIFY UND ER WHICH LIMB THE PENALTY HAS BEEN LEVIED. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE R OOTS FOR THE LEVY OF THE PENALTY LIE IN THE ASSESSMENT ORDER DATED 25.03 .2013 FRAMED U/S. 143 (3) OF THE ACT. 4. THE RETURNED INCOME WAS ASSESSED AS UNDER :- RS. TOTAL INCOME AS DECLARED 1,00,603/- ADD :- (I) ADDITION ON A/C OF UNDERSTATEMENT OF INSURANCE COMMISSION RECEIPTS (AS DISCUSSED) 8,22,390/- (II) ADDITION ON A/C OF UNEXPLAINED CASH DEPOSIT IS STANDARD CHARTERED BANK A/C (AS DISCUSSED) 16,42,592/- (III) ADDITION ON A/C OF UNEXPLAINED CASH DEPOSIT IN AXIS BANK A/C (AS DISCUSSED) 10,17,650 /- TOTAL INCOME 35,83,235/- ROUNDED OFF U/S. 288 A OF THE I. T. ACT TO RS.35,8 3,230/- 5. AT THE VERY OUTSET LET US UNDERSTAND THE STATUS OF THE QUANTUM ADDITION WHICH IS AS UNDER :- 6. THE FIRST NOTICE U/S. 274 OF THE ACT WAS ISSUED ON 25.03.2013 AND WHICH IS AS UNDER :- 7. THE SECOND NOTICE WAS ISSUED ON 07.03.2018 WHICH IS AS UNDER :- 8. A PERUSAL OF THE AFOREMENTIONED NOTICES SHOW TH AT NOWHERE THESE NOTICES STATE AS TO WHETHER THE ASSESSEE HAS CONCEA LED PARTICULARS OF INCOME OR FURNISH INACCURATE PARTICULARS OF INCOME. 9. THE FATE OF SUCH NOTICE HAVE BEEN DECIDED BY TH E HONBLE HIGH COURT OF DELHI IN THE CASE OF M/S. SAHARA INDIA LIF E INSURANCE COMPANY IN ITA NO.475/2019 ORDER DATED 02.08.2019. THE REL EVANT FINDINGS READ AS UNDER :- 10. A SIMILAR VIEW WAS TAKEN BY THE HONBLE KARNATA KA HIGH COURT IN THE CASE OF MANJUNATH COTTON AND GINNING FACTORY RE PORTED IN 359 ITR 565. THE RELEVANT FINDINGS READ AS UNDER :- 11. IN THE LIGHT OF THE AFOREMENTIONED DECISIONS OF THE HONBLE HIGH COURTS I HAVE NO HESITATION TO HOLD THAT THE P ENALTY NOTICES ISSUED U/S. 274 R.W.S 271 (1) (C) OF THE ACT ARE BAD IN LA W AND DESERVES TO BE QUASHED. ACCORDINGLY THE APPEAL FILED BY THE ASSESS EE IS ALLOWED. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15.09.2020. SD/- [ N. K. BILLAIYA] ACCOUNTANT MEMBER DATED: 15.09.2020 *NEHA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 15.09.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15.09.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 15.09.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 15.09.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 15.09.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 15.09.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 15.09.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 15.0 9.2020 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER