Shri Badre Alam, Basti V. Income Tax Officer, Basti

ITA 780/LKW/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5762 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K DEY
• Assessee Lawyers: H RAHMAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 780/LKW/2013 ASSESSMENT YEAR: 2009 - 10 SHRI. BADRE ALAM MUNDERWA BAZAR BASTI V. INCOME TAX OFFICER BASTI PAN: AGLPA4829L (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. H. RAHMAN, ADVOCATE RESPONDENT BY: SHRI. P. K. DEY, D.R. DATE OF HEARING: 07.01.2014 DATE OF PRONOUNCEMENT: 07.03.2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPE AL IS PREFERRED BY THE ASSESSEE AGAINST THE PENALTY OF ` 65,000 LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED IN SHORT 'THE ACT') WHICH WAS LATER ON CONFIRMED BY THE LD. CIT(A). 2 . DURING THE COURSE O F HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE PENALTY WAS LEVIED ON THE ADDITION OF ` 3,44,937 MADE ON ACCOUNT OF UNDISCLOSED SALES OF PADDY HUSK. IN APPEAL, THE ADDITION WAS REDUCED TO ` 50,000 AND THESE FACTS WERE NOT TA KEN INTO ACCOUNT WHILE LEVYING THE PENALTY AT ` 65,000. IF THE ADDITION IS REDUCED FROM ` 3,44,937 TO ` 50,000, THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT, IF LEVIABLE, WOULD BE VERY NOMINAL. IT WAS FURTHER CONTENDED THAT THE ADDITION WAS MADE ON ACCOUN T OF ESTIMATION OF SUPPRESSED SALES OF PADDY HUSK. THEREFORE, THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS NOT SUSTAINABLE. : - 2 - : 3 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDERS OF THE LOWER AUTHORITIES, WE FIND THAT THE ADDITION , FOR WHICH PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED , WAS REDUCED FROM ` 3,44,937 TO ` 50,000. THEREFORE, THE PENALTY SHOULD A LSO BE ACCORDINGLY REDUCED AND IF IT IS DONE IT WOULD BE VERY NOMINAL. MOREOVER , IT IS ALSO A FACT THAT THE ADDITION WAS MADE ON ACCOUNT OF ESTIMATION OF SUPPRESSED SALES. THEREFORE, THERE IS NO DIRECT EVIDENCE TO SHOW THAT THE ASSESSEE HAS EITHER CONCEA LED THE INCOME OR HAS FURNISHED THE INACCURATE PARTICULARS OF INCOME. THEREFORE, UNDER THESE CIRCUMSTANCES, THE PENALTY OF ` 65,000 LEVIED UNDER SECTION 271(1)(C) OF THE ACT IS NOT SUSTAINABLE. WE ACCORDINGLY DELETE THE SAME. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07.03.2014 SD/. SD/. [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07.03.2014 JJ: 0603 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGIST RAR