Arun Jain, New Delhi V. ITO, Ward-47(5), New Delhi

ITA 8885/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6345 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 13-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I. T. A. No. 8885/ De l/ 2019 ( नधा रण वष / As s es s ment Yea r : 2014-15) A r un J a in B- 4/ 7, F F , Ran a P r a t a p Ba g h, N e w D el hi P A N N o. A A L P J 312 5A बनाम/ V s . ITO Wa r d- 4 7 (5 ) N e w D e l hi (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Sh. Gurjeet Singh, CA यथ क ओर से / Respondent by : Sh. Zahid Parvez, Sr. DR स ु नवाई क तार ख / D a t e o f H e a r i ng 13.06.2022 घोषणा क तार ख /D a te o f P r o n o u nc e me n t 17.06.2022 आदेश/O R D E R PER PRADIP KUMAR KEDIA, AM: T he c a p t i on e d a pp e al h as b ee n fi l e d a t t he i ns t a n c e o f t he a s s es s e e a ga in s t t he or de r o f th e Co m mi s s i on e r o f In c o m e T a x (A p pe a l s ) -1 6, N e w D el hi ( ‘C I T (A ) ’ i n s ho r t ) , da t e d 1 3. 09 . 20 1 9 c on c e r n i n g A Y 2 014 -1 5. 2. T he a s s e s se e has r a i s e d th e fo l l ow i ng gr o un d s o f a p pe a l : - 1. B ec aus e t he a c t i o n f or l e v y i ng t h e P e n a lt y u/ s . 27 1 (1 ) (c ) i s be i ng c ha l l en ge d on fa c t s an d la w s i nc e AO has no t s pe c i f ie d u nd er w hi c h l i m b p e n a l t y i s l e v i e d i . e. w he th er fo r c o n c e al m e n t of p ar t i c ul ar s of i n c om e or f ur n is h in g of i n a c c ur a t e par t i cu la r s of i nc om e. 2. B ec aus e t he ac t i on i s un der c ha l l e n g e on fa ct s an d l aw f o r l e v y i n g p e n al t y of Rs . 1 1 , 63, 76 0 /- u/ s . 27 1 ( 1) (c ) b y t r ea ti ng d i f f e r en ce i n s t oc k as un e x p l a i n e d i n ve s t m e nt . 3. Wh en t he ma t t e r w as c al l e d fo r he a r i n g t h e L d. Cou nse l fo r a s s es s e e fa i rl y su b mi t t e d t ha t fi rs t g r ou n d is te c hni c al a nd i s n o t pr es s e d. G r oun d N o. 1 is t hu s d is mis s e d a s not pre ss ed . 4. A s re gar ds gr o u nd N o. 2, th e L d. C o uns e l s u b mi t t e d th a t t h e a s s es s men t o f t h e a s s es s e e w a s co mp l e t e d u/ s . 14 3 (3 ) o f t he A c t . T he i n co me o f t h e as s e s s ee w a s a s s es s e d a t Rs . 44 , 1 4, 320 /- a s a ga in s t r e t u r ne d i nc o me o f Rs . 4, 64, 32 0 / -. Wh i l e fr ami n g t he a s s es s men t, t he A O ma de a n a d di t i o n o f Rs . 39, 5 0 , 0 0 0/ - o n a c c o u n t o f une xp l a in ed i n v es t me nt s u / s . 69 o f th e A c t t ow a rds a ddi t i o n on a cc ou n t o f ex c e s s o p e ni n g s to c k . T he p en al t y o f Rs .11 , 6 3, 7 60 / - w e re i m p os e d p u rs u an t t o pe na l t y p ro c e edi ng s s i m ul tan e o u s ly i ni ti a t e d o n t h e a d d it i o ns s o mad e . In th is con te xt t he L d. Co uns e l s ub mi tt e d t ha t t he qu an t u m a dd i t io n s w a s s ub s ta nt i al l y b r o ug ht do w n w a s b y th e c o or d i n at e Be nc h o f I TA T i n I T A N o. 78 6 3/ D el / 2 01 8 o rd e r d a t ed 1 3. 05. 20 2 2. T he T r i b una l i n t h e qu a n t u m pr o c e e d in gs ha v e r es t ri c t e d t he a dd i t i o ns on a cc ou nt o f l o w N P ra t e be in g 2 % o f t h e to ta l s a l e s t ur n o ve r a n d del e t ed t he re m ai ni ng a d di t i o n s . The L d. Co un s el t h us s u b m i t t e d th at t h e a dd i t io ns h av e b ee n r e t a i n o n a p ure l y e s t i m a t e d b as i s fo r w h i c h i mp os it i o n o f p e na l t y u/ s . 2 71 ( 1 )( c ) i s not j us t i fi e d. 5. T he Ld. D R fo r t he r e ve nu e r e l i ed up on t h e o rd e rs of t h e CI T( A ) . 6. A s poi nt ou t o n b e ha l f o f t he a s s es s e e, t he qu a nt u m ad d i ti on i t se l f h as be e n s ubs t a n ti a l l y mod i fi e d an d s c a l e d do w n by t h e c oo r d i n at e B e nc h o f I T A T i n ITA N o. 7 86 3/ D e l/ 20 1 8 ord e r da t ed 13 . 0 5. 2 02 2. 7. T he o per at i v e p ar a o f t he IT A T or d e r i s re pr o d uc ed h e re u nd e r : “ 7. In t h e t ot a l i t y o f fa c t s and c i r cu m s t an c e s of th e i s s ue as n o te d a bo v e , I r e ac h t o a lo gi ca l co nc lu sion t h at t he As s e s s in g O ff i ce r was no t c or r e ct an d ju s t i f ie d i n m ak i n g a dd i t i on i n th e h an ds of a s s es s e e m e r el y o n th e ba s is of di ff e r en c e in t he tw o f i g ur e s , i. e . c l os i ng s t oc k as on 3 1. 03. 2 0 1 3 a n d op e n i n g s t oc k as on 0 1. 04. 2 0 1 3. H owe v er , t o co ve r al l po s s ib le l e a ka g e s of r e ve nu e, I am of t h e co n s id er e d o pi n i o n t h a t t he a d d i ti on i s r e qui r e d t o be m ade i n th e h a nds of as s e s s ee on a cc o u n t o f l ow N P r at e . T he r ef or e , t he A s s e ss i ng O f fi c er i s di r e ct e d t o m ak e ad di t i o n in t h e ha n d s of a ss e s s e e t ak i ng N P r a t e o f t o t a l s al e t ur no ve r a s 2 % of s a le s / t ur n o v e r . T h e As s e s si ng O f fi c er is d i r ec t ed t o r e c a lc ul at e t h e ad d i t i o n ac c or di ng l y . ” 8. In t h e l i g ht o f o r de r o f th e I TA T , i t i s ma ni fe s t th a t a d d i t i on s re t ai ne d i n t h e qu a nt u m a r e pu r el y on es t i ma te d b asi s w it h ou t a n y c o mp r e h e ns i v e a l l e g at i o n o f ‘ fu r n i s hi ng o f in a c c u r at e p a r ti c u l ar s o f i nc o me ’ e t c. pe r se c . 9. U nde r t h e s e ci rc u ms ta n c es , s u st a i n i n g p e n a l t y o n e s ti ma t e d a dd i t io n is un j u s ti fi e d i n th e l i g h t o f d e ci s i o n o f H o n’ bl e D e l h i H i gh Co urt in t he ca s e o f CIT v s. No ki a I n d i a Pv t. L t d. a s re po r te d i n 3 43 IT R 434 ( D e l ). 10 . Co ns eq ue n tl y, w e fi nd m e r i t i n t h e pl ea o f t h e a s s es s e e. T h e gr o un d N o . 2 o f t he app ea l o f t h e a s s es se e is t hus all ow e d. 11 . In th e re s ul t , t he ap pe a l o f t h e as s e s s ee is p ar tl y a ll ow e d. Sd/- Sd/- (C. N. PRASA D) (PRADI P KUMA R KEDI A) JUDI CI AL M EMBER ACCOUNT AN T M EM BER Dated: 17/06/2022 *Neha, Sr. Private Secretary Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI This Order pronounced on 17/06/2022 Date of dictation 16.06.2022 Date on which the typed draft is placed before the dictating Member 17.06.2022 Date on which the typed draft is placed before the Other Member 17.06.2022 Date on which the approved draft comes to the Sr. PS/PS 17.06.2022 Date on which the fair order is placed before the Dictating Member for pronouncement 17.06.2022 Date on which the fair order comes back to the Sr. PS/PS 17.06.2022 Date on which the final order is uploaded on the website of ITAT 17.06.2022 Date on which the file goes to the Bench Clerk 17.06.2022 Date on which the file goes to the Head Clerk