Hari Om Verma, Kanpur V. DY. Commissioner of Income Tax-2, Kanpur

ITA 768/LKW/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0576 (ITAT-LUCKNOW)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 26-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Assessee Lawyers: JAGDISH
• Keywords: Unexplained investment; Unexplained expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. T. S. KAPOOR , ACCOUNTANT MEMBER ITA NO. 768/LKW/2016 BLOCK PERIOD FROM 1/4/1998 TO 12/3/1999 HARI OM VERMA 43/18, DHOBI MAHAL KANPUR V. DCIT - 2 KANPUR T AN /PAN : ABGPV1423R (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI JAGDISH, ADVOCATE RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE OF HEARING: 07 12 201 7 DATE OF PRONOUNCEMENT: 08 12 201 7 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) CONFIRMING THE PENALTY LEVIED UNDER SECTION 158BFA OF THE ACT. 2 . DURING THE COURSE OF HEARING, THE LD. A.R. OF THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE TRIBUNAL P ASSED IN QUANTUM AND ASSESSMENT ORDER GIVING EFFECT TO THE ORDER OF THE TRIBUNAL , WITH THE SUBMISSION THAT WHILE GIVING EFFECT TO THE ORDER OF THE TRIBUNAL, THE ASSESSING OFFICER HAS MADE ADDITION OF RS.5,23,895/ - UNDER DIFFERENT HEADS. THIS ADDITION WAS NOT CHALLENGED BY THE ASSESSEE. THE ASSESSING OFFICER ACCORDINGLY INITIATED PENALTY PROCEEDINGS UNDER SECTION 158BFA OF THE ACT. THE LD. A.R. OF THE ASSESSEE HAS CONTENDED THAT SMALL SMALL ADDITIONS WERE MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT : - 2 - : UNDER DI FFERENT HEADS . THOUGH THE ASSESSEE HAS FURNISHED EXPLANATION, BUT IT WAS NOT ACCEPTED BY THE ASSESSING OFFICER. THEREFORE, ON ACCOUNT OF NON - ACCEPTANCE OF THE EXPLANATIONS OF THE ASSESSEE, THE ASSESSING OFFICER HAS LEVIED PENALTY OF RS.3,14,337/ - UNDER S ECTION 158BFA OF THE ACT . THE LD. A.R. OF THE ASSESSEE FURTHER CONTENDED THAT SINCE ASSESSEE HAS FURNISHED ALL THE RELEVANT INFORMATION TO EXPLAIN THE SOURCE OF SMALL INVESTMENTS, PENALTY SHOULD NOT HAVE BEEN LEVIED. 3 . THE LD. D.R., ON THE ORDER HAND, RELIE D UPON THE ORDER OF THE LD. CIT(A). 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS , WE FIND THAT WHILE GIVING EFFECT TO THE ORDER OF THE TRIBUNAL, THE ASSESSING OFFICER HAS MADE ADDITION OF RS.5,23,895/ - , THE DETAILS OF WHICH ARE AS UNDER: - 1. UNEXPLAINED ACQUISITION OF CASH RS. NIL 2. UNEXPLAINED ACQUISITION OF STOCK OF GOLD JEWELLERY RS. NIL 3. UNEXPLAINED ACQUISITION OF KV PS AND ITS ACCRUED INTEREST RS. 48,56 0 / - 4. UNEXPLAINED DEPOSIT S IN THE S/B A /C NO.3035 RS. 7,344/ - 5. UNEXPLAINED ACQUISITION OF NS C AND ITS ACCRUED INTEREST RS. 896/ - 6. UNDISCLOSED LONG TERM CAPITAL GAINS ON SALE OF PROPERTY IN A GRA R S.33,955/ - 7. UNEXPLAIN ED EXPENDITURE ON THE MARRIAGE OF DAUGHTER GITA VERMA RS. NIL 8. UNEXPLAINED EXPENDITURE ON THE MARRIAGE OF SON NARAIN VERMA RS.1,60,991/ - 9. UNEXPLAINED EXPENDITURE ON THE MARRIAGE OF BROTHER GANPAT VERMA RS.34,436/ - 10. UNEXPLAINED CONSTRUCTION IN THE HOUSE NO.43/18, DHOBI MOHAL, KANPUR RS. 39,213/ - 11. UNEXPLAINED EXPENDITURE AND UNDISCLOSED INCOME OF INTEREST AS PER LP - 3 (166) RS.1,98,500/ - 12. UNDISCLOSED INCOME RS.NIL TOTAL UNDISCLOSED INCOME RS.5,23,895/ - : - 3 - : 5 . BEING NOT CONVINCED WITH THE EXPLANATIONS OF THE ASSES SEE WITH REGARD TO SMALL INVESTMENTS, THE ASSESSING OFFICER HAS LEVIED PENALTY UNDER SECTION 158BFA OF THE ACT OF RS.3,14,337/ - . 6 . WE HAVE CAREFULLY EXAMINED THE ISSUES ON WHICH ADDITIONS WERE MADE BY THE ASSESSING OFFICER AND WE FIND THAT THERE WERE SMALL S MALL AMOUNTS INVESTED. THOUGH THE ASSESSEE HAS TRIED TO EXPLAIN THE SAME, BUT IT WAS NOT ACCEPTED BY THE ASSESSING OFFICER. NO DOUBT FOR NON - ACCEPTANCE OF EXPLANATIONS OF THE ASSESSEE, ADDITION CAN BE MADE BUT PENALTY UNDER SECTION 158BFA OF THE ACT C OUL D NOT BE SUSTAINED. WE, THEREFORE, FIND NO MERIT IN THE PENALTY LEVIED BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE PENALTY. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/ - SD/ - [ T. S. KAPOOR ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 8 TH DECEMBER , 201 7 JJ: 0712 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A ) 4 . CIT 5 . DR ASSISTANT REGISTRAR