Shri Sanjay Jayendra Dave, Ahmedabad V. The Income tax Officer,Ward-10(3), Ahmedabad

ITSSA 273/AHD/2012

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 1072 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-09-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 25-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G C DAXIMI
• Assessee Lawyers: P M MEHTA
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER A ND SHR I S. S. GODARA , JUDICIAL MEMBER SANJAY JAYENDRA DAVE, 12/141, POOJA APARTMENTS, NR. HIMATLAL PARK SOCIETY, AHMEDABAD PAN: AAPPD7758K (APPELLANT) VS ITO, WARD 10 (3), AHMEDABAD (RESPONDENT) REVENUE BY : S H RI G.C. DAXIMI , SR. D . R. ASSESSEE BY: S H RI P. M. MEHTA , A.R. DATE OF HEARING : 30 - 09 - 2 015 DATE OF PRONOUNCEMENT : 21 - 10 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - T HIS ASSESSEE S APPEAL FOR A.Y. 2006 - 07 , AR ISES FROM ORDER OF THE CIT(A) - XVI, AHMEDABAD DATED 20 - 03 - 2012 IN APPEAL NO. CIT(A) - XVI/ITO/WD.10(3)/ 09 / 10 - 11 , IN PROCEEDINGS UNDER S ECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T (SS) A NO . 273 / A HD/20 12 A SSESSMENT YEAR 200 6 - 07 I.T(SS).A NO. 273 /AHD /2012 A.Y. 2006 - 07 PAGE NO SANJAY JAYENDR A DAVE VS. ITO 2 2. THE ASSESSE E S SOLE SUBSTANTIVE GROUND IN THE PRESENT CASE CHALLENGES SECTION 271(1)(C) PENALTY OF RS. 3,52,297/ - LEVIED BY THE ASSESSING OFFICER IN ORDER DATED 23 - 03 - 2010 AS AFFIRMED IN THE LOWER APPELLATE PROCEEDINGS. THE DEPARTMENT CONDUCTED A SEARCH IN GROUP CAS ES OF M/S PRAVIN RATILAL SHAREDALAL ON 22 - 09 - 2005 LEADING TO SEIZURE OF ALLEGED INCRIMINATING DOCUMENTS AND COMPUTER DATA PERTAINING TO THE ASSESSEE POINTING OUT TOWARDS LARGE SCALE TRANSACTION OF HAWALA PROFITS THROUGH THE SEARCHED PERSON. THIS CULMINATE D IN ISSUANCE OF A SECTION 153C NOTICE TO ASSESSEE ON 08 - 11 - 2007. HE DID NOT FILE ANY RETURN. THE ASSESSING OFFICER TOOK COGNIZANCE OF ASSESSEE S ACTION IN NOT FILING RETURN AND PROCEEDED U/S. 144 OF THE ACT. HE ACCORDINGLY FRAMED EX - PARTE ASSESSMENT A DDING BANK DEPOSITS OF RS. 12,13,300/ - IN UCO BANK AND ADDED THE SAME IN ASSESSEE S HANDS ON PROTECTIVE BASIS SINCE SU BSTANTIVE ADDITION ALREADY MADE IN THE SEARCHED ASSESSEE S CASE; IN IMPUGNED ASSESSMENT FRAMED ON 20 - 12 - 2007. THE ASSESSING OFFICER ALSO TREATED THE ABOVE S T ATED ADDITION AS AN INSTANCE OF CONCEALMENT AND FURNISHING OF INACCURATE PA RTICULARS OF INCOME U/S. 271(1)(C) FOR INITIATING PENALTY PROCEEDINGS IN QUESTION. 3. THE ASSESSEE PREFERRED APPEAL. THE CIT(A) UPHELD THE ASSESSING OFFICER S ACTION IN ORDER DATED 15 - 10 - 2009. THE ASSESSEE THEREAFTE R PREFERRED IT(SS)A 554 TO 557/AHD/2010 FOR ASSESSMENT YEAR 2003 - 04 TO 2006 - 07 BEFORE THE TRIBUNAL. THE ASSESSING OFFICER TOOK UP PENALTY PROCEEDINGS IN THE MEANTIME . HE HEAVILY RELIED UPON I.T(SS).A NO. 273 /AHD /2012 A.Y. 2006 - 07 PAGE NO SANJAY JAYENDR A DAVE VS. ITO 3 HIS OBSERVATIONS MADE IN THE COURSE OF ASSESSMENT THEREBY TREATING THE IMPUGNED CASH DEPOSITS OF RS. 12,13,300/ - AS CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. HE ACCORDINGLY LEVIED THE IMPUGNED PENALTY OF RS. 3,52,297/ - IN ORDER DATED 23 - 03 - 2010. THE CIT(A ) HAS AFFIRMED THE VERY ACTION. THIS LEAVES THE ASSESSEE AGGRIEVED. 4. WE HAVE HEARD THE BOTH THE PARTIES AND PERUSED THE CASE FILE. IT EM A NATES THAT A CO - ORDINATE BENCH OF THE TRIBUNAL IN QUANTUM CASE (SUPRA) DECIDED ON 14 - 02 - 201 4 HAS RESTORED THE ISSUE BACK TO THE CIT(A) FOR AFRESH ADJUDICATION. THE REVENUE FAILS TO REBUT THIS FACTUAL POSITION . WE ARE OF THE OPINION IN THIS BACKDROP OF FACTS THAT THE IMPUGNED PENALTY HAS NO LEGS TO STAND SINCE THE TRIBUNAL HAS SET ASIDE THE QUA NTUM PROCEEDING ITSELF BACK TO THE LOW ER APPELLATE AUTHORITY. WE FOLLOW SUIT AND RESTORE THIS APPEAL AS WELL BACK TO THE CIT(A). THE ASSESSEE S GROUNDS ARE ACCEPTED FOR STATISTICAL PURPOSES. 5. THIS ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OURT ON 21 - 10 - 2015 SD/ - SD/ - ( PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 21 /10 /2015 I.T(SS).A NO. 273 /AHD /2012 A.Y. 2006 - 07 PAGE NO SANJAY JAYENDR A DAVE VS. ITO 4 AK / COPY OF ORDE R FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,