Shri. Raj Kumar Malaiya, V. CIT-I, Jabalpur

ITA 89/JAB/2012

• Counselvise Citation: 8922914 RSA 2012
• Duration Of Justice: 1 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 28-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K K UPADHYAY
• Assessee Lawyers: DR H S MODH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.89/JAB/2012 ASSESSMENT YEAR: 2005-06 SHRI RAJ KUMAR MALAIYA, VS. COMMISSIONER OF INCO ME TAX-I, TILAK GANJ, JABALPUR. MALL GODOWN ROAD, SAGAR (M.P.) (PAN AIYPM 2692 L). (APPELLANT) (RESPONDENT) APPELLANT BY : DR. H.S. MODH, ADVOCATE RESPONDENT BY : SHRI K.K. UPADHYAY, D.R. DATE OF HEARING : 24.03.2014 DATE OF PRONOUNCEMENT : 27.03.2014 ORDER PER T.S. KAPOOR, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A) DATED 02.12.2011. 2. THE ISSUE INVOLVED IS PENALTY UNDER SECTION 271D FOR VIOLATION OF PROVISIONS OF SECTION 269SS OF THE INCOME TAX ACT, 1961. THE ASSESSING OFFICER HAS IMPOSED PENALTY OF RS.67,000/- FOR VIOLATION OF SEC TION 269SS OF THE ACT WHICH THE LD. CIT(A) HAS CONFIRMED. ITA NO.89 /JAB/2012 A.Y. 2005-06 2 3. AT THE OUTSET, THE LD. AUTHORISED REPRESENTATIVE INVITED OUR ATTENTION TO THE PENALTY ORDER AT PAGE NO.2 AND SUBMITTED THAT IN TH E CASE OF MAGAN LAL JAIN ORIGINALLY AN AMOUNT OF RS.10,000 WAS PAID TO HIM W HICH WAS RECOVERED ON 27.11.2004. THEREFORE, THIS AMOUNT OF RS.10,000/- CANNOT BE SAID AS A LOAN RATHER IT IS A REPAYMENT OF EARLIER DEBT. HE FURTHER SUBM ITTED THAT FROM THE SAME PERSON ON 06.10.2004 AN AMOUNT OF RS.15,000/- WAS RECEIVED WHICH APPARENTLY IS BELOW RS.20,000/- AND, THEREFORE, THE PENALTY WAS NOT IMP OSABLE ON THIS AMOUNT. HOWEVER, HE FAIRLY CONCEDED THAT IN RESPECT OF OTHE R DEPOSITS, FOR VIOLATION OF SECTION 269SS, THE LD. CIT(A) HAS RIGHTLY CONFIRMED THE PENALTY. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL PARTIES AND GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT OUT OF TOTAL AMOUNT OF RS.67, 000/- RECEIVED IN CASH FROM THREE PERSONS NAMELY ABHAY KUMAR, RAJESH KUMAR AND MAGAN LAL JAIN, THE AMOUNT OF RS 10,000/- WAS RECEIVED AS REPAYMENT AND THE ACCOU NT WAS SQUARED UP AND FURTHER AN AMOUNT OF RS.15,000 WAS RECEIVED ON 06.10.2004 A ND BALANCE OUTSTANDING DOES NOT EXCEED RS.20,000/-. THEREFORE, THESE TWO ENTRI ES DO NOT INVITE PENALTY UNDER SECTION 271D BECAUSE IN THESE TWO ENTRIES THE ASSES SEE DID NOT VIOLATE THE ITA NO.89 /JAB/2012 A.Y. 2005-06 3 PROVISIONS OF SECTION 269SS OF THE ACT. THEREFORE, WE ARE IN AGREEMENT WITH THE CONTENTION OF THE ASSESSEE AND IN VIEW OF THE ABOVE , THE PENALTY UPHELD BY THE LD. CIT(A) IS REDUCED BY AN AMOUNT OF RS.25,000/- AND T HE REST OF PENALTY AMOUNTING TO RS.42,000/- IS CONFIRMED. 6. IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE AS SESSEE IS PARTLY ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 27.03.2014) SD/- SD/- (BHAVNESH SAINI) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 27 TH MARCH, 2014 PBN/* COPY OF THE ORDER FORWARDED TO :- 1) APPELLANT 2) RESPONDENT 3) CIT (APPEALS) CONCERNED 4) CIT CONCERNED 5) D.R., ITAT, JABALPUR BENCH, JABALPUR 6) GUARD FILE. BY ORDER, SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, CAMP AT JABALPUR