Jai Prakash Singhania, V. ACIT,

ITSSA 1/RAN/2014

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 1198 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 03-02-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROUSHAN SR S C
• Assessee Lawyers: P S PAUL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL: CIRCUIT BENCH : RANCHI [BEFORE HONBLE S/SHRI N. S. SAINI, AM AND GEORGE M ATHAN, JM] IT (SS) A NO. 01/RAN/2014 [BLOCK PERIOD: 1996-97 TO 2002-03 (UP TO 30-01-2002 )] SRI JAI PRAKASH SINGHANIA, NORTH MARKET ROAD, UPPER BAZAR, RANCHI PAN: AGKPS 0137J VS THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, CENTRAL REVENUE BUILDING, RANCHI (APPELLANT) (RESPONDENT) APPELLANT BY SHRI P. S. PAUL, CA RESPONDENT BY SHRI DEEPAK ROUSHAN, SR. SC DATE OF HEARING: 28-10-2015 DATE OF PRONOUNCEMENT: 28-10-2015 O R D E R PER GEORGE MATHAN, JM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A), RANCHI (JHARKHAND) IN APPEAL NO.325 RAN/B.P./2006-07 DATED 17-09-2013 FOR THE BLOCK PERIOD 1996-97 TO 20 02-03 (UP TO 30-01-2002) IN CONFIRMING THE LEVY OF PENALTY U/S 1 58BFA(2) OF THE ACT. 2. SHRI P. S. PAUL, CHARTERED ACCOUNTANT REPRESENTE D ON BEHALF OF THE ASSESSEE AND SHRI DEEPAK RAKSHIT, LEARNED SR. S TANDING COUNSEL REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AR THAT THERE WA S A SEARCH OPERATION IN THE PREMISES OF THE ASSESSEE ON 30-01- 2002. AS A CONSEQUENCE OF THE SEARCH, THE UNDISCLOSED INCOME O F THE ASSESSEE HAD BEEN ASSESSED AT RS.1,65,70,978/- AS AGAINST AN UNDISCLOSED IT (SS) A NO.01/RAN/2014 [B.P: 1996-97 TO 2002-03 (UP TO 31-01-2002)] 2 INCOME RETURNED OF RS.36,26,310/-. IT WAS A SUBMISS ION THAT AFTER THE VARIOUS APPEALS, THE UNDISCLOSED INCOME WAS ASSESSE D AT RS.40,15,501/- I.E. THERE WAS AN ENHANCEMENT OF RS. 3,89,191/- OVER AND ABOVE THE UNDISCLOSED INCOME RETURNED BY THE AS SESSEE. IT WAS A SUBMISSION THAT THIS INCREASE WAS ON ACCOUNT OF EST IMATION AS DONE BY ITAT IN RESPECT OF THE INCOME FROM GOODS SENT FOR A PPROVAL TO AN EXTENT OF RS.41,36,555/- AS ON 31-01-2002 FOR WHIC H NO BILLS WERE RAISED. IT WAS A SUBMISSION THAT ON AN ESTIMATED AD DITION, NO PENALTY WAS LEVIABLE. THE LEARNED AR DREW OUR ATTENTION TO PAGE 3 OF THE PENALTY ORDER WHEREIN ASSESSEES EXPLANATION HAS BE EN EXTRACTED. IT WAS A SUBMISSION THAT THE PENALTY AS LEVIED U/S 158 BFA (2) OF THE ACT MAY BE DELETED. 4. IN REPLY, THE LEARNED DR VEHEMENTLY SUPPORTED T HE ORDER OF THE LEARNED CIT (A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE PENALTY ORDER, MORE SPECIFICALLY, THE REPLY FILED B Y THE ASSESSEE CLEARLY SHOWS THAT THE ASSESSEE HAS EXPLAINED THE VARIATION BETWEEN THE RETURNED INCOME AND THE ASSESSED INCOME. THE VARIAT ION CLEARLY IS ON ACCOUNT OF AN ESTIMATED ADDITION IN RESPECT OF THE GOODS WHICH HAD BEEN SENT FOR APPROVAL. THIS EXPLANATION OF THE ASS ESSEE NEITHER HAS BEEN DISLODGED BY THE REVENUE NOR HAS IT BEEN WHISP ERED THAT THE SAID EXPLANATION IS A FALSE EXPLANATION. IN FACT, THE EX PLANATION HAS BEEN CLEARLY SUPPORTED WITH THE ORDER OF THE TRIBUNAL FO R THE RELEVANT COMPUTATION THERETO. THIS BEING SO, WE ARE OF THE V IEW THAT ON ESTIMATED ADDITION, NO PENALTY IS LEVIABLE ON THE A SSESSEE AND CONSEQUENTLY, THE PENALTY AS LEVIED U/S 158BFA (2) OF THE ACT AND CONFIRMED BY THE LEARNED CIT (A) STANDS DELETED. IT (SS) A NO.01/RAN/2014 [B.P: 1996-97 TO 2002-03 (UP TO 31-01-2002)] 3 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THE ORDER WAS PRONOUN CED IN THE OPEN COURT AT THE CLOSE OF HEARING ON 28-10-2015. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (GEORGE MATHAN) JUDICIAL MEMBER DATE : 28.10.15 LK DEKA/SR.PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER IT (SS) A NO.01/RAN/2014 [B.P: 1996-97 TO 2002-03 (UP TO 31-01-2002)] 4 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 28.10.15 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28.10.15 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 28.10.15 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 28.10. 15 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 28.10.15 S R.PS 6. DATE OF PRONOUNCEMENT 28.10.15 SR.PS 7. FILE SENT TO THE BENCH CLERK 28.10.15 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER