Shri Brijesh Sukhdev Patel, Ahmedabad V. The Income Tax Oficer, Ward-6(5), Ahmedabad

ITSSA 183/AHD/2015

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3429 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 15-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IT(SS)A NO. 183/AHD/2015 BRIJESH SUKHDEV PATEL VS ITO ASSESSMENT YEAR: 2009-10 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] IT(SS)A NO. 183/AHD/2015 ASSESSMENT YEAR: 2009-10 SHRI BRIJESH SUKHDEV PATEL ................. .APPELLANT PROP A-128, HERITAGE BUNGLOWS, SOLA BHADEJ ROAD, OPP. SCIENCE CITY ROAD, AHMEDABAD - 380061 [PAN : AGWPP 4151 H] VS. INCOME-TAX OFFICER ............................RESPONDENT WARD 6 (5), AHMEDABAD APPEARANCES BY: HEM CHHAJED FOR THE APPELLANT MUDIT NAGPAL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 24.10.2017 DATE OF PRONOUNCING THE ORDER : 26.10.2017 O R D E R PER PRAMOD KUMAR AM: 1. THE SHORT ISSUE THAT WE ARE REQUIRED TO ADJUDICA TE IN THIS APPEAL IS WHETHER OR NOT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, LEARNED CIT(A) WAS JUSTIFIED IN UPHOLDING THE IMPUGNED PENALTY OF RS.4,490/- IMPOSE D ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. THE ASSESSMENT YEAR INVOLVED IS 2009-10 AND THE IMPUGNED CIT(A)S ORDER WAS PASSED ON 13.03.2015. 2. BRIEFLY STATED, THE RELEVANT MATERIAL FACTS ARE LIKE THIS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER MADE AN ADDITION OF RS.50,400/- IN RESPECT OF NOTIONAL RENT FROM HOUSE PROPERTY IN VAI SANAVADEVI APARTMENT. IN APPEAL, THE ADDITION WAS RESTRICTED TO RS.25,200/-. THE MA TTER DID NOT REST THERE. THE ASSESSING OFFICER ALSO IMPOSED A PENALTY OF RS.4,49 0/-, BEING ONE HUNDRED PERCENT OF TAX SOUGHT TO BE EVADED BY THE ASSESSEE, FOR FUR NISHING INACCURATE PARTICULARS OF INCOME. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A), BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. 4. WE FIND THAT ADMITTEDLY THE RELATED QUANTUM ADDI TION IS FOR A NOTIONAL INCOME ON PURELY ESTIMATED BASIS. THE ASSESSEES EXPLANAT ION ABOUT NOT BEING AWARE ABOUT NUANCES OF LAW REQUIRING HIM TO OFFER THIS NOTIONAL INCOME TO TAX, EVEN IF ACTUALLY IT(SS)A NO. 183/AHD/2015 BRIJESH SUKHDEV PATEL VS ITO ASSESSMENT YEAR: 2009-10 PAGE 2 OF 2 TAXABLE, IS A REASONABLE EXPLANATION. IN ANY CASE, THE AMOUNTS INVOLVED ARE VERY SMALL AND THE MATTER HAS REACHED FINALITY SO FAR AS QUANTUM PROCEEDINGS. IN THE LIGHT OF THESE FACTS, AND BEARING IN MIND ENTIRETY OF THE CASE, WE DO NOT THINK IT WAS A FIT CASE FOR IMPOSITION OF PENALTY UNDER SECTION 271(1) (C) OF THE ACT. WE, THEREFORE, DELETE THE IMPUGNED PENALTY OF RS.4,490/-. THE ASS ESSEE GETS THE RELIEF ACCORDINGLY. 5. IN THE RESULT, APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 26 TH DAY OF OCTOBER, 2017. SD/- SD/- RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 26 TH DAY OF OCTOBER, 2017 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ......26.10.2017.- ..PREPARE D AS PER ONE PAGE MANUSCRIPT OF HONBLE AM WHICH IS ATTACHED WITH THE ORDER IN ITA NO.182/AHD/ 2015,..... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 26.10.2017........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 26.10.2017....... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: .. 26.10.2017 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ... 30.10.2017... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: ..