Appeal details
Counselvise Citation
[2012] 124 COUNSELVISE.COM (IT) 7771 (ITAT-RAJKOT)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax (Search & Seizure) Appeal
Pronouncement Date
30-01-2012
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
16-01-2012
Assessment Year
misc
Appeal Filed On
01-08-2011
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA (JM) AND SHRI A. L. GEHL OT AM). ITA(SS) NO. 21/RJT/2011. (PREVIOUS YEARS CORRESPONDING TO VARIOUS A.YS. FROM 1991-92 TO 2000-01 AND PERIOD FROM 1/4/2000 TO 8/8/ 2000). SHRI VRUNDAVAN ROLLER & FLOUR MILLS, VS. THE DY . C.I.T., GUNDALA ROAD, GONDAL. CIRCLE-1, RAJKOT. PAN:AABFV5811F. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI J. M. SAHAY, D. R. ASSESSEE BY : SHRI J. C. RANPURA, C.A.. DATE OF HEARING : .16-01-2012. DATE OF PRONOUNCEMENT : 30-01-2012. O R D E R. PER A. L. GEHLOT (A.M.) : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE APPELLATE ORDER OF COMMISSIONER OF INCOME TAX (APPE ALS)-I, RAJKOT DATED 20-06- 2011 FOR ASSESSMENT OF PREVIOUS YEARS CORRESPONDING TO VARIOUS A.YS. FROM 1991-92 TO 2000-01 AND PERIOD FROM 1/4/2000 TO 8/8/ 2000. 2. THE GROUND RAISED IN APPEAL IS IN RESPECT OF LEV Y OF PENALTY U/S.158BFA(2) OF THE ACT RS.47,040/- 3. THE BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESS EE IS ENGAGED IN THE BUSINESS OF ROLLING AN FLOUR MILL. A SEARCH U/S.13 2 OF THE ACT WAS CARRIED ON 08- 08-2000. THE AO LEVIED PENALTY OF RS.47,040/ U/S.1 58BFA(2) OF THE ACT ON THE GROUND THAT ITAT HAS CONFIRMED THE ADDITION OF RS.7 0,000/- MADE BY THE AO ON THE BASIS OF DOCUMENTS FOUND AT THE TIME OF SEARCH. THE ADDITION WAS CONFIRMED AS THE ASSESSEE FAILED TO EXPLAIN SATISFACTORILY. THE SUBMISSION OF THE ASSESSEE IN RESPECT OF PENALTY MATTER THAT THE AO HAS NOT FO UND ANY SATISFACTION OVER THE ITA (SS)21-RJT-2011. 2 CONCEALMENT OF THE INCOME NOR FOUND IN FILING OF IN ACCURATE PARTICULARS OF INCOME. THE LD. A.R. SUBMITTED THAT AMOUNT OF PENALTY IS PE TTY AMOUNT THEREFORE SAME MAY BE CANCELLED. THE LD. A.R. RELIED UPON FOLLOWI NG DECISIONS:- (1) UOI VS. DHARMENDRA TEXTILE PROCESSORS & ORS. 3 06 ITR 277, (2) CIT & ANR. VS. NEMICHAND 237 CTR (KAR) 535, (3) DHIRAJ SURI VS. ADDITIONAL CIT 98 ITD 187 (DEL ), (4) ITAT, RAJKOT BENCH, RAJKOT IN THE CASE OF SHRI BECHARBHAI P. PARMAR VS. CY.CIT CIRCLE-1, RAJKOT.DATED 22=05-2009 . AND (5) CIT VS. MUSSADILAL RAM BHAROSE [165 ITR 14 (SC )]. 4. THE PENALTY LEVIED BY THE AO HAS BEEN CONFIRMED BY THE CIT(A). 5. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES, RECORD PERUSED. WE FIND THAT THE ADDITION WAS CONFIRMED ON THE BASI S OF SOME JOTTING OF LOOSE PAPER BY PENCIL. AS REGARDS THE QUANTUM MATTER, UND ER SUCH CIRCUMSTANCES, ADDITION SUSTAINED IS CORRECT BUT PENALTY PROCEEDI NG IS A SEPARATE PROCEEDING. THERE IS NO FINDING BY THE AO THAT THE JOTTING BY P ENCIL WAS THE POSITIVE CONCEAL INCOME OF THE ASSESSEE. IF WE CONSIDER THE ISSUE FR OM THE POINT OF VIEW OF BUSINESSMAN, IT CAN BE SAID THAT SUCH JOTTING BY PE NCIL MAY BE FOR THE PURPOSE OF BUSINESS DECISION AND IT IS NOT NECESSARY ALWAYS TH AT JOTTING BY PENCIL HAS BEEN DONE FOR CONCEALING THE PARTICULAR OF INCOME OR FUR NISH INACCURATE PARTICULARS OF INCOME. EVEN OTHERWISE ALSO WE FIND FORCE IN THE S UBMISSION OF THE LD. A.R. THAT CONSIDERING THE PETTY AMOUNT OF QUANTUM IN PENALTY, THE PENALTY IS LIABLE TO BE CANCELLED. AFTER CONSIDERING THE TOTALITY OF THE F ACTS OF THE CASE AND IN THE LIGHT OF ABOVE DISCUSSION, WE CANCEL THE PENALTY OF RS.47,04 6/- LEVIED BY AO. U/S.158BFA(2) OF THE ACT 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 30-01-2012. SD/- SD/- ( T. K. SHARMA ), ( A. L. GEHLOT ), JUDICIAL MEMBER. ACCOUNTANT MEMBER. RAJKOT. DATED: 30-01-2012. NVA/ ITA (SS)21-RJT-2011. 3 COPY TO:- 1.VRUNDAVAN ROLLER & FLOUR MILLS, GONDAL... 2 THE DY. CIT, CIRCLE-1, RAJKOT. 3.THE C.I.T.(A)-I, RAJKOT. 4.THE C.I.T.-I, RAJKOT. 5.THE D.R., ITAT, RAJKOT. 6. THE GUARD FILE TRUE COPY. BY ORDER, ASSTT. REGISTRAR, ITAT,RAJKOT.
