M/s Model Echoes Pvt. Ltd., Kanpur V. Jt. Commissioner of Income Tax, Kanpur

ITSSA 322/LKW/2017

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3554 (ITAT-LUCKNOW)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 05-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER IT (SS) A NO. 321&322/LKW/2017 ASSESSMENT YEAR: 2010 - 11 M/S MODEL ECHOES PVT. LTD. C/O SULTAN TANNERS JAJMAU, KANPUR V. JOINT CIT CENTRAL CIRCLE II KANPUR T AN /PAN : AAACM9691A (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI RAKESH GARG, ADVOCATE RESPONDENT BY: SMT. ALKA SINGH, D.R. DATE OF HEARING: 04 12 201 7 DATE OF PRONOUNCEMENT: 05 12 201 7 O R D E R PER P ARTHA SARATHI CHAUDHURY, J.M : THESE APPEALS PREFERRED BY THE ASSESSEE EMANATES FROM SEPARATE ORDERS OF THE LD. CIT(A) - IV, KANPUR DATED 16/2/2017. 2 . THE SOLE GRIEVANCE IN THESE APPEALS BY THE ASSESSEE IS AGAINST IMPOSITION OF PENALTY UNDER SECTION 271D AND 271E OF THE ACT. THESE CASES RELATING TO THE SAME ASSESSEE WERE HEARD TOGETHER AND SINCE THE FACTS ARE SIMILAR AND ISSUES ARE COMMON, THE SAME ARE DISPOSED OF BY THIS CONSOLIDATED ORDER. FOR THE SAKE OF CONVENIENCE, WE TAKE UP THE FACTS AS APPEARING IN ITA NO.321/LKW/2017. 3 . IN THIS CASE, A SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF THE ACT WAS CONDUCTED IN THE CASE OF SHRI MEHTAB ALAM, C/O M/S SULTAN VILLA, JAJMAU, KANPUR AND OTHERS, IN WHICH A DOCUMENT BELONGING TO THE ASSESSEE W AS FOUND AND SEIZED. THEREFORE, THE ASSESSING OFFICER IT(SS)A NO.321&322/LKW/2017 2 TOOK ACTION UNDER SECTION 133C OF THE ACT. ASSESSMENT UNDER SECTION 153C OF THE ACT WAS COMPLETED AND PENALTY UNDER SECTION 271D AND 271E OF THE ACT WAS INITIATED FOR ACCEPTANCE AND RETURN OF CASH LOA N OF RS.20 LAKHS , WHICH IS IN CONTRAVENTION OF SECTION 269SS/269T OF THE ACT. THE PENALTY IMPOSED BY THE JCIT WAS CONFIRMED BY THE LD. CIT(A) UNDER SECTION 271E AND 271D OF THE ACT OF RS.20 LAKHS EACH. 4 . BEING FURTHER AGGRIEVED, ASSESSEE IS I N APPEAL BEFO RE US. AT THE TIME OF HEARING, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT THE PAPER BOOK FILED RELATES TO THE LEDGER ACCOUNT OF SHRI MEHTAB ALAM WH ICH PERTAINS TO FINANCIAL YEAR 2010 - 11 RELE VANT TO THE ASSESSMENT YEAR 2011 - 12 WHEREAS PENALTY IS BEING IMP OSED ON THE BASIS OF THE ASSESSMENT ORDER PASSED FOR PREVIOUS YEAR 2009 - 10 RELATING TO ASSESSMENT YEAR 2010 - 11. 5 . THE LD. D.R., ON THE OTHER HAND, REITERATED THE ORDERS OF THE SUBORDINATE AUTHORITIES AND PUT RELIANCE ON THEM. 6 . WE HAVE PERUSED THE CASE RECOR DS, HEARD THE RIVAL CONTENTIONS AND ON PERUSAL OF THE BOOKS OF ACCOUNT; ESPECIALLY LEDGER ACCOUNT OF SHRI MEHTAB ALAM, WE FIND THAT THE TRANSACTIONS OF RS.20 LAKHS RELATES TO THE FINANCIAL YEAR 2010 - 11 RELEVANT TO THE ASSESSMENT YEAR 2011 - 12. HOWEVER, ASS ESSMENT FRAMED AND THE PENALTY LEVIED UNDER SECTION 271E AND 271D IS FOR ASSESSMENT YEAR 2010 - 11 WHICH IS IN RELATION TO THE FINANCIAL YEAR 2009 - 10. WE ARE OF THE CONSIDERED VIEW THAT UNDE R THESE CIRCUMSTANCES OF FACT, NARRATION OF EVENTS AND HAPPENINGS O F TRANSACTION AS APPEARING IN THE BOOKS OF ACCOUNT OF THE ASSESSEE , PERTAINS TO FINANCIAL YEAR 2009 - 10, ASSESSMENT YEAR 2010 - 11. THIS FACT WAS ALSO NOT DISPUTED BY THE LD. D.R. ACCORDINGLY, WE ARE OF THE CONSIDERED VIEW THAT IMPOSITION OF PENALTY UNDER S ECTION 271E AND 271D OF THE ACT FOR IT(SS)A NO.321&322/LKW/2017 3 ASSESSMENT YEAR 2010 - 11 DOES NOT HAVE ANY LEGAL VALIDITY IN THE CASE OF THE ASSESSEE AND ACCORDINGLY WE CANCEL THE PENALT Y . 7 . SINCE THE FACTS AND THE ISSUE ARE SAME IN ITA NO.322/LKW/2017, BY FOLLOWING OUR DECISION IN IT A NO.321/LKW/2017 WE CANCEL THE PENALTY. 8 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 5/12/ 201 7 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 5 TH DECEMBER , 2017 JJ: 0412 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR