Sou Jyoti Anil Kothari, Pune V. ITO, Wd.-5(4), Pune

ITA 791/PUN/2007

• Counselvise Citation: 79124514 RSA 2007
• Duration Of Justice: 4 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-11-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 28-05-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI I C SUDHIR, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO 791/PN/07 (ASSTT. YEAR: 2002-03) MRS KOTHARI JYOTI ANIL, .. APPELLANT PLOT NO 39/44 SADASHANTI APARTMENT, LANE NO 9, PRABHAT ROAD, PUNE 411 004 PAN AFPPK5066E VS. INCOME-TAX OFFICER, .. RESPONDENT WD. 5(4), PUNE APPELLANT BY: NONE RESPONDENT BY: SMT NEERA MALHOTRA DATE OF HEARING : 29.11.2011 DATE OF PRONOUNCEMENT : 30.11.2011 ORDER PER G.S. PANNU, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, PUNE WHICH IN TURN, HAS ARISEN FROM THE PENALTY ORDER OF THE ASSESSING OFFICER DATED 27.3.20 07 PASSED UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT), PERTAINING TO THE ASSESSMENT YEAR 2002-03. 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE COMMISSIO NER OF INCOME- TAX (APPEALS) ERRED IN CONFIRMING THE PENALTY OF RS 96 ,160/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE ACT. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSIN G MADE ADDITIONS OF (I) RS 89,596/- ON ACCOUNT OF DIFFERENCE I N PURCHASES AND SALES, (II) ON ACCOUNT OF UNSECURED LOAN OF RS 1,69,200/-, AND (III ) GIFT RECEIVED DURING THE ASSESSMENT YEAR UNDER APPEAL OF RS 61,750/-. ALL THESE A DDITIONS WERE CONFIRMED IN APPEAL BY THE COMMISSIONER OF INCOME-TAX ( APPEALS). THE ASSESSING OFFICER ACCORDINGLY LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT AMOUNTING TO RS 96,160/-, WHICH TOO WAS CONFIRMED IN AP PEAL BY THE COMMISSIONER OF INCOME-TAX (APPEALS). STILL AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE. T HE LEARNED DEPARTMENTAL REPRESENTATIVE, HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS MADE BY T HE LEARNED DEPARTMENTAL REPRESENTATIVE AND HAVE ALSO PERUSED THE RECORDS. WE FIND THAT IN THE APPEAL FILED BY THE ASSESSEE BEFORE THE TRIBUNAL AG AINST THE QUANTUM PROCEEDINGS, THE TRIBUNAL VIDE ITS ORDER DATED 29.11.2 011 IN ITA NO 648/PN/06 HAS DELETED THE ADDITION OF RS 89,596/- MADE ON ACCOUN T OF DIFFERENCE IN PURCHASES AND SALES AND IN RESPECT THE ADDITION OF RS 1, 69,200/- ON ACCOUNT OF UNSECURED LOANS, MAJOR PORTION OF ADDITION HAS BEEN DE LETED, WHILE ADDITION ON ACCOUNT OF GIFT HAS BEEN SUSTAINED. IN SO FAR AS THE A DDITIONS SUSTAINED ON ACCOUNT OF UNSECURED LOAN AND UNEXPLAINED GIFTS ARE CONCE RNED, IN OUR VIEW, THE SAME DO NOT FALL WITHIN THE MEANING OF CONCEALMENT OR FURNISHING OF INACCURATE PARTICULARS OF INCOME PER SECTION 271(1)(C) OF THE ACT. I T IS A CASE WHERE THERE IS ONLY A FAILURE TO SUBSTANTIATE THE EXPLANATION AND NO T A CASE WHERE THE EXPLANATION FURNISHED BY THE ASSESSEE HAS BEEN FOUND TO BE FALSE. 3 6. IN VIEW OF THE AFORESAID DISCUSSION, THE PENALTY LEVI ED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE ACT AMOUNTING T O RS 96,160/- NO LONGER SURVIVES AND IS ACCORDINGLY DIRECTED TO BE DELETED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON THE 30 TH DAY OF NOVEMBER, 2011. SD/- SD/- (I C SUDHIR) (G .S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEM BER PUNE, DATED: 30 TH NOVEMBER, 2011 B COPY TO:- 1) APPELLANT 2) RESPONDENT 3) THE CIT (A)-II, PUNE 4) CIT-II, PUNE 5) DR, B BENCH, ITAT, PUNE. 6) GUARD FILE TRUE COPY BY ORDER SR. PS, I.T.A.T., PUNE