Mrs. Alka Pande, Chandigarh V. ITO, Chandigarh

ITA 903/CHANDI/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6826 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 11-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, A CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 903/CHD/2016 ASSESSMENT YEAR: 2010-11 MRS. ALKA PANDE, VS. THE ITO, WARD 1(2), CHANDIGARH CHANDIGARH PAN NO. AJBPP7791B (APPELLANT) (RESPONDENT) APPELLANT BY : SH. M.R.SHARMA RESPONDENT BY : SMT. CHANDERKANTA DATE OF HEARING : 14.07.2017 DATE OF PRONOUNCEMENT : 29.09.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-1 [HE REINAFTER REFERRED TO AS CIT(A)], CHANDIGARH DATED 4.5.2016. 2. THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME-T AX ACT, 1961 (IN SHORT 'THE ACT'). 2 3. BRIEF FACTS OF THE CASE ARE THAT DURING THE RELE VANT YEAR UNDER CONSIDERATION, ON EXAMINATION OF THE DETAILS REGARD ING FOREIGN TRAVEL, IT WAS FOUND THAT ON THREE OCCASIONS I.E. ON 24.09.200 8, 05.01.2009 AND 25.12.2009, THE DAUGHTER OF THE ASSESSEE ACCOMPANIE D HER TO TRIPS TO LONDON FOR WHICH A TOTAL EXPENSE OF RS. 1,55,233/- WAS INCURRED. THE ASSESSEE COULD NOT OFFER ANY EXPLANATION DURING THE ASSESSMENT PROCEEDINGS AND THE SAME WAS CONSIDERED AS THE EXPENSES FOR NON -BUSINESS PURPOSES. ADDITION WAS MADE ON THIS ACCOUNT AND PENALTY PROCE EDINGS U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 WAS INITIATED FOR FURNI SHING INACCURATE PARTICULARS OF INCOME. DURING THE PENALTY PROCEEDIN GS ALSO, THE ASSESSEE COULD NOT FURNISH ANY REASON FOR SUCH TRAVEL EXPENS E INCURRED FOR THE TRAVEL OF HER DAUGHTER. IT WAS, THEREFORE, HELD THAT THE ASSESSEE HAS CONCEALED INCOME AND FURNISHED INACCURATE PARTICULARS OF HER INCOME AND A PENALTY OF RS. 47,966/- WAS LEVIED U/S 271(1)(C) OF THE ACT. 3. BEFORE THE LD. CIT(A), THE ASSESSEE SUBMITTED TH AT WHILE FILING THE RETURN OF INCOME THE ASSESSEE ADDED BACK AN AMOUNT OF RS. 1,60,299/- TO HER INCOME TOWARDS THE PERSONAL EXPENSES WHICH WERE INCLUSIVE OF RS. 1,07,493/- BEING THE AMOUNT OF COST OF TRAVELLING O F HER DAUGHTER. IT WAS, THEREFORE, SUBMITTED THAT IN VIEW OF THIS ADDING OF INCOME BY THE ASSESSEE HERSELF WHILE COMPUTING THE INCOME AND FILING THE R ETURN OF INCOME, SUCH DISALLOWANCE CANNOT BE CONSIDERED A CONCEALMENT OF INCOME OR FURNISHING INACCURATE PARTICULARS OF INCOME WITHIN THE MEANIN G OF SECTION 271(1)(C) OF THE ACT. 3 4. THE LD. CIT(A), HOWEVER, NOTED FROM THE RECORD THAT THE ASSESSEE HAD ADDED AN AMOUNT OF RS. 1,60,299/- UNDER THE HEA D VEHICLE EXPENSES CONSIDERED PERSONAL. HE HELD THAT THE ADDITION ON ACCOUNT OF PERSONAL USE OF VEHICLE EXPENSES CANNOT BE CONSIDERED AS EXPENSE S ON ACCOUNT OF PERSONAL FOREIGN TOUR AND TRAVEL. HE ACCORDINGLY UP HELD THE PENALTY LEVIED BY THE ASSESSING OFFICER. 5. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBM ITTED THAT ASSESSEE DID NOT OWN ANY VEHICLE, NO DEPRECIATION ON ANY VEH ICLE HAS EVER BEEN CLAIMED BY THE ASSESSEE. HE HAS FURTHER EXPLAINED T HAT IN FACT WHILE SUO MOTO ADDING THE EXPENSES ON ACCOUNT OF PERSONAL TRA VEL, THE HEAD WAS WRONGLY MENTIONED AS VEHICLE EXPENSES CONSIDERED P ERSONAL. HE HAS ALSO RELIED IN THIS ASPECT ON THE ACCOUNTS OF THE ASSESS EE. THE LD. DR COULD NOT REBUT THE ABOVE AVERMENTS MADE BY THE ASSESSEE. IN VIEW OF THE ABOVE, WE DO NOT THINK THAT IN THIS CASE PENALTY U/S 271(1)(C ) OF THE ACT IS WARRANTED. WE ACCORDINGLY, DELETE THE PENALTY SO LEVIED BY THE AUTHORITIES BELOW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HE REBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.09.2017 SD/- SD/- ( ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :29 TH SEPT. 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR