Rhul Vijay Munot, Ahmednagar V. Income-tax Officer,

ITA 887/PUN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0754 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 31-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: I P NAGO
• Keywords: Opportunity of being heard; Peak credit

Judgement Text

] IQ.KS ] IQ.KS ] IQ.KS ] IQ.KS IQ.KS IQ.KSIQ.KS IQ.KS IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , ' # BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.887/PN/2014 '% % / ASSESSMENT YEAR : 2009-10 SHRI RAHUL VIJAY MUNOT, C/O. NEWASKAR CAR CARE, OLD VASANT TALKIES ROAD, AHMEDNAGAR PAN NO.AGJPM8199M . / APPELLANT V/S ITO, WARD-1, AHMEDNAGAR . / RESPONDENT / ASSESSEE BY : SHRI SUNIL GANOO / DEPARTMENT BY : SHRI I.P. NAGO / ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER DATED 28-03-2014 OF THE CIT(A)-IT/TP, PUNE RELATING TO ASSESSM ENT YEAR 2009- 10. 2. THE ASSESSEE IN THE GROUNDS OF APPEAL HAS CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE LEVY OF PENALTY OF RS.39,44,300/- U/S.271(1)(C) OF THE I.T. ACT BY THE AO. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND FILED HIS RETURN OF INCOME ON 07-05-2010 DECLARING TOTAL INC OME OF / DATE OF HEARING :31.12.2015 / DATE OF PRONOUNCEMENT:31.12.2015 2 ITA NO.887/PN/2014 RS.5,50,510/-. THE AO COMPLETED THE ASSESSMENT U/S.143(3) DETERMINING THE TOTAL INCOME AT RS.1,21,33,490/-. IN THE ASSESSMENT O RDER, THE AO APART FROM OTHER ADDITIONS HAD MADE ADDITION OF RS.65,76,900 /- AS UNEXPLAINED INCOME ON ACCOUNT OF CASH DEPOSITS IN THE VAR IOUS SAVING BANK ACCOUNTS MAINTAINED BY THE ASSESSEE BEING THE PEAK CASH CRE DIT. 4. IN APPEAL THE LD.CIT(A) ENHANCED SUCH ADDITION TO RS.1,8 5,27,900/- BEING THE ENTIRE CASH DEPOSITS IN THE VARIOUS SAVING BANK ACCOUNTS AS UNEXPLAINED INCOME OF THE ASSESSEE AS AGAINST THE PEAK C REDIT OF RS.65,76,900/- TREATED BY THE AO AS UNEXPLAINED INCOME. T HE AO, THEREAFTER, INITIATED PENALTY PROCEEDINGS U/S.271(1)(C) OF THE I .T.ACT AND LEVIED PENALTY OF RS.39,44,300/- VIDE PENALTY ORDER DATED 27-04-2012 . THE ASSESSEE CHALLENGED LEVY OF PENALTY U/S.271(1)(C) BEFORE THE CIT(A). THE LD.CIT(A) VIDE ORDER DATED 28-03-2013 HAS DIRECTED THE A O TO MODIFY THE PENALTY ORDER U/S.271(1)(C) FOR THE A.Y. 2009-10 BY SUBSTITU TING THE AMOUNT OF RS.2,35,54,750/- AS AGAINST THE TOTAL INCOME OF RS.1,16,03,750/- DETERMINED BY THE AO IN THE PENALTY ORDER WHILE COMPUTING THE PENALTY. IN EFFECT HE HAD DIRECTED THE A O TO SUBSTITUTE THE FIGURE OF RS.1,85,27,900/- AS AGAINST RS.65,76,900/-. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBM ITTED THAT THE TRIBUNAL VIDE ITA NO.1923/PN/2013 ORDER DATED 31-03-201 5 IN THE QUANTUM PROCEEDINGS HAS SET ASIDE THE ORDER OF THE CIT (A) AND DIRECTED THE AO TO RETAIN THE ADDITION OF RS.65,76,900/- AS THE UND ISCLOSED INCOME OF THE ASSESSEE. HE ACCORDINGLY SUBMITTED THAT THE MATTE R MAY BE RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO RECOMPUTE THE P ENALTY IN THE LIGHT 3 ITA NO.887/PN/2014 OF THE DECISION OF THE TRIBUNAL AND SUBSTITUTE THE FIGURE OF RS.65,76,900/- AS AGAINST RS.1,85,97,900/- DIRECTED BY THE CIT(A). 7. THE LD. DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION FOR THE ABOVE PROPOSITION. 8. AFTER HEARING BOTH THE SIDES, WE FIND THE TRIBUNAL VIDE ITA NO.1923/PN/2013 FOR A.Y. 2009-10 WHILE DECIDING THE QUANTUM APPEAL OF THE ASSESSEE HAS OBSERVED AS UNDER : 16. THEREFORE, IN CONCLUSION, WE HOLD THAT THERE W AS NO JUSTIFICATION FOR THE CIT(A) TO ENHANCE THE INCOME AMOUNTING TO RS.1,85,9 7,900/- HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE. THE ASSESSI NG OFFICER WAS QUITE JUSTIFIED IN APPLYING THE PEAK CREDIT AND BRIN GING TO TAX A SUM OF RS.65,76,900/- ON ACCOUNT OF THE UNEXPLAINED DEPOSITS IN THE THREE SAVING BANK ACCOUNTS. AS A CONSEQUENCE, WE SET-SIDE THE ORDER OF THE CIT(A) AND RETAIN THE ADDITION OF RS.65,76,900/- MADE BY THE ASSESSING OFFICE R AS UNDISCLOSED INCOME IN THE HANDS OF THE ASSESSEE. CONSEQUENTLY, ASSESSEE SUCCEEDS IN GROUND OF APPEAL NO.1. 9. IN VIEW OF THE ABOVE, WE RESTORE THE ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO MODIFY THE PENALTY ORDER BY SUBSTITUTING THE FIGURE OF RS.65,76,900/- AS AGAINST THE ENHANCED INCOME OF RS.1,85,97,9 00/- DIRECTED BY THE CIT(A) ON ACCOUNT OF THE DEPOSITS IN THE VARIOUS BANK ACCOUNTS. THE AO SHALL RECOMPUTE THE PENALTY AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE HOLD AN D DIRECT ACCORDINGLY. GROUNDS RAISED BY THE ASSESSEE ARE ACCOR DINGLY PARTLY ALLOWED. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEA RING ITSELF, I.E. ON 31-12-2015. SD/- SD/- ( VIKAS AWASTHY ) ( R.K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER IQ.KS PUNE ; # DATED : 31 ST DECEMBER, 2015. LRH'K 4 ITA NO.887/PN/2014 ( )'+ , / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT (A) - I T/TP , PUNE 4. 5. 6. CIT-IT/TP, PUNE ' *, *, IQ.KS / DR, ITAT, B PUNE; / GUARD FILE. / BY ORDER , ' //TRUE COPY// / * / SR. PRIVATE SECRETARY *, IQ.KS / ITAT, PUNE