Shri Ravinder Kumar, Ludhiana V. ACIT, CC-2, Ludhiana

ITA 926/CHANDI/2019

AI Insights

The case involves an appeal by Shri Ravinder Kumar against the order passed by the ld. Commissioner of Income Tax (Appeals) - 5, Ludhiana, which confirmed a penalty imposed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2003-04. The penalty was imposed following a survey at the premises of the assessee, where an unaccounted investment of Rs. 80,000 in Kisan Vikas Patra was discovered. The Assessing Officer added this amount to the returned income and initiated penalty proceedings. The assessee contested the penalty, arguing that the amount was a re-investment of an earlier investment in Kisan Vikas Patra, which was received as a gift from his father-in-law. The Tribunal, after considering the submissions and the regular compliance of the assessee with income tax filings, decided in favor of the assessee, leading to the deletion of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127875 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-08-2023
• Assessment Year: 2003-2004
• Appeal Filed On: 11-06-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 27; 6; 56

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ITA No 926/CHD/2019 नधा रण वष / Assessment Year : 2003-04 Shri Ravinder Kumar, Prop. M/s Raj Kumar Ravinder Kumar, Chowk Nikkamal, Ludhiana. Vs The ACIT, Central Circle-2, Ludhiana. थायीलेखासं./PAN NO: ACJPK8423C अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by: Shri Parikshit Aggarwal, CA राज व क ओर से/ Revenue by : Shri Dharam Vir, JCIT, Sr.DR स ु नवाई क तार"ख/Date of Hearing : 21.08.2023 उदघोषणा क तार"ख/Date of Pronouncement : 23.08.2023 आदेश/Order Per Sanjay Garg, Judicial Member: T h e p r e s e n t a p p e a l h a s b e e n p r e f e r r e d b y t h e as s e s s e e a g a i n s t t h e o r d e r p a s s e d b y t h e l d . C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) - 5 , L u d h i a n a [ h e r e i n a f t e r r e f e r r e d t o a s ‘ l d . C I T ( A ) ’ ] d a t e d 2 3 . 0 4 . 2 0 1 9 p e r t a i n i n g t o 2 0 0 3 - 0 4 a s s e s s m e n t y e a r . 2 . T h e a s s e s s e e i n t h i s a p p e a l h a s c o n t e s t e d t h e l ev y o f p e n a l t y o f R s . 2 1 , 5 6 9 / - u / s 2 7 1 ( 1 ) ( c ) o f t h e I n c o m e T a x A c t , 1 9 6 1 ( i n s h o r t ‘ t h e A c t ’ ) . ITA No.926/CHD/2019 A.Y. 2003-04 2 3 . T h e b r i e f f a c t s o f t h e c a s e a r e t h a t d u r i n g t h e s u r v e y a c t i o n a t t h e p r e m i s e s o f t h e a s s e s s e e , a K i s a n V i ka s P a t r a o f R s . 8 0 , 0 0 0 / - w a s f o u n d a t t h e p r e m i s e s o f t h e a s s e s se e . T h e A s s e s s i n g O f f i c e r ( i n s h o r t ‘ t h e A O ’ ) h e l d t h a t t h e a s s e s s e e c o u l d n o t e x p l a i n t h e s o u r c e o f i n v e s t m e n t o f R s . 8 0, 0 0 0 / - . T h e A O o b s e r v e d t h a t t h e a s s e s s e e h a d a l s o n o t d i s cl o s e d t h e i n t e r e s t i n c o m e o f R s . 2 3 0 0 / - i n t h e a f o r e s a i d a m o u nt i n h i s r e t u r n o f i n c o m e . H e , t h e r e f o r e , m a d e a d d i t i o n o f R s . 8 2 , 3 0 0 / - i n t o t h e r e t u r n e d i n c o m e o f t h e a s s e s s ee . H e a l s o i n i t i a t e d p e n a l t y p r o c e e d i n g s u / s 2 7 1 ( 1 ) ( c ) o f t h e A c t a n d i m p o s e d t h e i m p u g n e d p e n a l t y w h i c h h a s b e e n f u r t h e r c o n f i r m e d b y t h e l d . C I T ( A ) . 4 . B e f o r e u s , l d . C o u n s e l f o r t h e a s s e s s e e h a s s u b mi t t e d t h a t t h e a s s e s s e e i s a r e g u l a r I n c o m e T a x a s s e s s e e a n d h a s b e e n f i l i n g h i s I n c o m e T a x R e t u r n s . T h a t t h e a m o u nt o f i n v e s t m e n t o f R s . 8 0 , 0 0 0 / - i n K i s a n V i k a s P a t r a w a s a m e a g e r a m o u n t w h i c h w a s , i n f a c t , r e - i n v e s t m e n t o f t h e e a r li e r i n v e s t m e n t m a d e i n K i s a n V i k a s P a t r a b y h i s f a t h e r -i n - l a w . T h a t t h e s a i d K i s a n V i k a s P a t r a w a s g i f t e d t o h i m by h i s f a t h e r - i n - l a w . H e h a s s u b m i t t e d t h a t t h e r e w a s n e it h e r a n y u n e x p l a i n e d i n c o m e o f t h e a s s e s s e e n o r t h e a s s e s s e e h a s e v e r c o n c e a l e d h i s i n c o m e o r f u r n i s h e d i n a c c u r a t e p a r t i cu l a r s o f i n c o m e . H e h a s f u r t h e r s u b m i t t e d t h a t t h e p e n a l t y p r o c e e d i n g s a r e s e p a r a t e t o t h e q u a n t u m a s s e s s m e n t ITA No.926/CHD/2019 A.Y. 2003-04 3 p r o c e e d i n g s . T h a t m e r e l y b e c a u s e t h e a d d i t i o n h a s be e n m a d e i n t h e q u a n t u m p r o c e e d i n g s , t h a t i t s e l f , w o u l d n o t w a r r a n t t h e l e v y o f p e n a l t y . H e h a s s u b m i t t e d t h a t t h i s w as a m e a g e r a n i n v e s t m e n t i n K i s a n V i k a s P a t r a r e c e i v e d a s a g if t f r o m h i s f a t h e r - i n - l a w w h i c h w a s a r e - i n v e s t m e n t o f e a r l i e r o l d i n v e s t m e n t m a d e b y h i s f a t h e r - i n - l a w . H e h a s , t h e re f o r e , s u b m i t t e d t h a t i t i s n o t a f i t c a s e f o r l e v y o f p e na l t y u / s 2 7 1 ( 1 ) ( c ) o f t h e A c t . 5 . T h e L d . D R , h o w e v e r , h a s s u b m i t t e d t h a t t h e a s se s s e e h a d n o t p r o d u c e d a n y g i f t d e e d o f t h e s a i d K i s a n V ik a s P a t r a f r o m h i s f a t h e r - i n - l a w . 6 . T h e L d . A R , h o w e v e r , h a s r e l i e d u p o n t h e d o c u m e nt d a t e d 2 4 . 1 2 . 1 9 9 3 w r i t t e n i n U r d u l a n g u a g e a n d h a s s u b m i t t e d t h a t t h e s a m e i s t h e g i f t d e e d e x e c u t e d by h i s f a t h e r - l a w r e l a t i n g t o t h e e a r l i e r i n v e s t m e n t i n t he K i s a n V i k a s P a t r a . 7 . W e h a v e c o n s i d e r e d t h e r i v a l c o n t e n t i o n s . T h e ld . c o u n s e l h a s n o t p l a c e d o n r e c o r d a t r a n s l a t i o n o f th e U r d u d o c u m e n t r e l i e d u p o n b y h i m , t h e r e f o r e , t h e c o n t e n ts o f t h e s a i d d o c u m e n t c o u l d n o t b e a s c e r t a i n e d a n d , h e n c e , n o r e l i a n c e c a n b e p l a c e d o n t h e s a i d d o c u m e n t . H o w e ve r , c o n s i d e r i n g t h e s m a l l n e s s o f t h e a m o u n t a n d t h e a s se s s e e b e i n g a r e g u l a r I n c o m e T a x a s s e s s e e a n d r e g u l a r l y fi l i n g h i s ITA No.926/CHD/2019 A.Y. 2003-04 4 I n c o m e T a x R e t u r n s , w e d o n o t f i n d i t a c a s e o f c o nc e a l m e n t o f i n c o m e o r f u r n i s h i n g o f i n a c c u r a t e p a r t i c u l a r s of i n c o m e w a r r a n t i n g l e v y o f p e n a l t y . T h e r e f o r e , t h e i m p u g n e d p e n a l t y l e v i e d b y t h e A O i s o r d e r e d t o b e d e l e t e d . 6 . I n t h e r e s u l t , t h e a p p e a l o f t h e a s s e s s e e s t a n d s a l l o w e d . O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 2 3 r d A u g u s t , 2 0 2 3 . S d / - S d / - (VIKRAM SINGH YADAV) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER “Poonam” आदेश क त(ल)प अ*े)षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु +त/ CIT 4. )वभागीय त न.ध, आयकर अपील"य आ.धकरण, च0डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar