Shri Malaybhai S.Karbhari, Baroda V. The Income tax Officer,Ward-2(4), Baroda

ITA 755/AHD/2012

• Counselvise Citation: 75520514 RSA 2012
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 03-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DK MISHR A
• Assessee Lawyers: WRITTEN SUBMISSIONS

Judgement Text

, , , , SMC, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , !' # ' !' # ' !' # ' !' # ' BEFORE SHRI G.C. GUPTA, VICE-PRESIDENT ITA NO.755/AHD/2012 [ASSTT.YEAR : 2006-2007] MALAYBHAI S. KARBHARI ABHINANDAN B/H. 16, HARINAGAR SOCIETY, GOTRI ROAD, VADODARA. /VS. THE ITO, WARD-2(4) BARODA. ( (( (%& %& %& %& / APPELLANT) ( (( ('(%& '(%& '(%& '(%& / RESPONDENT) )* + , #/ ASSESSEE BY : WRITTEN SUBMISSIONS . + , #/ REVENUE BY : SHRI D.K. MISHRA, SR.DR / + *01/ DATE OF HEARING : 9 TH DECEMBER, 2013 234 + *01/ DATE OF PRONOUNCEMENT : 10-01-2014 #5 / O R D E R THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-07 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, BAROD A DATED 08.02.2012. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE T IME OF HEARING BEFORE THE TRIBUNAL. THE ASSESSEE HAS FILED WRITTE N SUBMISSIONS BEFORE THE TRIBUNAL. ACCORDINGLY, THE APPEAL OF THE ASSES SEE IS BEING DISPOSED OF EX PARTE QUA THE ASSESSEE-APPELLANT AFTER CONSIDERING WRITTEN S UBMISSIONS FILED BY THE ASSESSEE AND THE ARGUMENTS OF THE LEAR NED DR. ITA NO.755/AHD/2012 3. THE ONLY EFFECTIVE GROUND OF APPEAL OF THE ASSES SEE IS GROUND NO.1 WHICH IS REPRODUCED AS UNDER: 01) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW THE LD. CIT(A) WAS ERRED IN CONFIRMING THE PENALTY OF RS.4,500/- U/S.271(1)(C) ON THE NOTIONAL INCOME ON THE GROUND THAT THE APPELLANT HAS FAILED TO SHOW A POLLUSABLE EXPLANATI ON INSPITE OF APPELLANT HAD GIVEN POLLUSABLE EXPLANATION. 4. THE LEARNED DR RELIED ON THE ORDERS OF THE AO AN D THE CIT(A). I HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND P ERUSED THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. I FIND THAT THE ONLY GROUND IN THIS APPEAL OF THE ASSESSEE IS REGARDING VALIDITY OF PEN ALTY OF ` 4,500/- ONLY UNDER SECTION 271(1)(C) OF THE ACT. I FIND THAT TH E PENALTY WAS IMPOSED ON ACCOUNT OF NOTIONAL ANNUAL LETTING VALUE ADDED W ITH REGARD TO THE VACANT PROPERTY OF THE ASSESSEE. THE ASSESSEE HAS THROUGHOUT PLEADED BEFORE THE AO AND THE CIT(A) THAT HE WAS NOT AWARE OF THE PROVISIONS THAT THE TAX IS TO BE PAID ON ANNUAL LETTING VALUE OF THE VACANT PROPERTY ALSO. HE HAS RELIED ON THE DECISION OF THE HONBL E SUPREME COURT IN THE CSE OF K.P. MADHUSUDANAN VS. CIT, 251 ITR 99 (SC). IN ANY CASE, THE ASSESSEE HAS SUBMITTED THAT IT WAS UNDER BONA FIDE BELIEF, AND THEREFORE, NO PENALTY SHOULD BE LEVIED ON THE ASSESSEE. I FIN D THAT THE ASSESSEE HAS FILED AN EXPLANATION AND THE SAME CANNOT BE SAID TO BE NOT BONA FIDE . THE BASIC FACTS WERE AVAILABLE ON RECORD AND PLEA OF TH E ASSESSEE THAT THE PROPERTY IN QUESTION WAS VACANT DURING THE RELEVANT PERIOD, COULD NOT BE CONTROVERTED ON BEHALF OF THE REVENUE. IN THESE FA CTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW CONSIDERED VIEW THAT NO PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIABLE ON THE AS SESSEE ON THE NOTIONAL VALUE OF THE VACANT PROPERTY IN QUESTION. ACCORDIN GLY, PENALTY ITA NO.755/AHD/2012 U/S.271(1)(C) OF THE ACT OF ` 4,500/- IS CANCELLED AND THE GROUND OF THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD