Sh.Ravinder Singh Nagi, V. Deputy Commissioner of Income Tax, Mohali

ITA 791/CHANDI/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5064 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 09-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDERKANTA
• Section: 147; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 789 TO 791/CHD/2017 ASSESSMENT YEARS: 2007-08 TO 2009-10 SH. RAVINDER SINGH NAGI, VS. THE DCIT, CIRCLE 6(1 ), MOHALI, PUNJAB MOHALI PAN NO. AAGPN3602B (APPELLANT) (RESPONDENT) APPELLANT BY : SH. T.N. SINGLA RESPONDENT BY : SMT. C. CHANDERKANTA DATE OF HEARING : 05.07.2017 DATE OF PRONOUNCEMENT : 14.07.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN PREFERRED BY THE ASSE SSEE AGAINST THE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX ( APPEALS)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)] ALL DATED 17.2.2017 RELATING TO ASSESSMENT YEARS 2007-08 TO 2009-10. 2. THE SOLE ISSUE TAKEN BY THE ASSESSEE IN ALL THE APPEALS IS REGARDING THE CONFIRMATION OF PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) 2 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). T HE FACTS, FOR THE SAKE OF CONVENIENCE ARE TAKEN FROM ITA NO.789/CHD/2017 AS L EAD CASE, FOR DISCUSSION. 3. THE BRIEF FACTS RELATING TO THE ISSUE UNDER CONS IDERATION ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CIVIL CONTRA CTOR OF ERECTION, FABRICATION AND INSTALLATION OF PLANT, MACHINERY, S TRUCTURE AND CIVIL WORKS. FOR THE RELEVANT YEAR UNDER CONSIDERATION, THE ASSE SSEE FILED RETURN OF INCOME ON 12.5.2011 DECLARING A TAXABLE INCOME OF R S. 71,97,950/-. SINCE THE RETURN OF INCOME WAS FILED BEYOND THE PRESCRIBE D PERIOD FOR FILING THE RETURN, HENCE, THE SAME WAS DECLARED INVALID RETURN . HOWEVER, THE ASSESSING OFFICER REOPENED THE ASSESSMENT U/S 147 OF THE ACT AND ASSESSED THE INCOME OF THE ASSESSEE AT RS. 1,24,63,297/-. TH E ASSESSING OFFICER ESTIMATED THE NET PROFITS OF THE ASSESSEE @ 12% OF THE GROSS RECEIPTS AS AGAINST 7% DECLARED BY THE ASSESSEE. HE HAS ALSO IM POSED PENALTY U/S 271(1)(C) OF THE ACT IN RESPECT OF THE ADDITIONAL INCOME ESTIMATED AS AGAINST DECLARED BY THE ASSESSEE AT RS.17,13,904/-. THE LD. CIT(A) CONFIRMED THE PENALTY SO LEVIED BY THE ASSESSING OF FICER. THE ASSESSEE IS, THUS, IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. ADMITTEDLY, IT IS A CASE OF ASSESSMENT OF THE INCOME OF THE ASSESSEE ON ESTIMAT ION BASIS. IT IS NOT THE CASE OF THE LOWER AUTHORITIES THAT ANY INACCURATE P ARTICULARS OF INCOME HAVE BEEN FURNISHED BY THE ASSESSEE. EVEN IN OUR VIEW, T HE SAME IS ALSO NOT A CASE OF CONCEALMENT OF INCOME. MERELY BECAUSE THE A SSESSING OFFICER HAS ASSESSED THE INCOME ON HIGHER PERCENTAGE OF GROSS P ROFIT THAN THAT WAS 3 DECLARED BY THE ASSESSEE, THAT ITSELF CANNOT BE SAI D TO BE A CASE OF FURNISHING OF INACCURATE PARTICULARS OF INCOME OR C ONCEALMENT OF INCOME. UNDER THE CIRCUMSTANCES, WE DO NOT FIND ANY JUSTIFI CATION ON THE PART OF THE LOWER AUTHORITIES IN IMPOSING THE IMPUGNED PENALTY, WHICH IS ACCORDINGLY ORDERED TO BE DELETED. 5. SINCE THE FACTS AND ISSUE INVOLVED IN ALL THESE APPEALS ARE IDENTICAL, HENCE, THE PENALTY IMPOSED IN ALL THE ABOVE CAPTI ONED APPEALS IS HEREBY ORDERED TO BE DELETED. 6. IN THE RESULT, THESE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.07.2017. SD/- SD/- ( ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14 TH JULY, 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR