The ACIT, Circle-6, Ahmedabad V. Shri Bhagwandas Punjabi, Ahmedabad

ITSSA 375/AHD/2011

• Counselvise Citation: [2011] 124 COUNSELVISE.COM (IT) 8032 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 13-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A L THAKKAR

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , . .!'#$, % & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ./ I.T(SS).A. NO.375/AHD/2011 (BLOCK PERIOD : 01/04/1990 TO 07/03/2011) ASST.CIT, CIRCLE-6 AHMEDABAD ( ( ( ( / VS. SHRI BHAGWANDAS PUNJABI 3-B, SURDHARA BUNGALOWS OPP.GOYAL INTERCITY DRIVE-IN-ROAD AHMEDABAD ) % ./*+ ./ PAN/GIR NO. : AEHPP 2016 C ( ), / // / APPELLANT ) .. ( -.), / RESPONDENT ) ), / / APPELLANT BY : SHRI VINOD TANWANI, SR.D.R. -.), 0 / / RESPONDENT BY : SHRI A.L. THAKKAR, A.R. (1 0 2% / / / / DATE OF HEARING : 21/10/2011 3'4 0 2% / DATE OF PRONOUNCEMENT : 31/10/2011 5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-XI, AHMEDABA D DATED 08/03/2011 FOR THE BLOCK PERIOD 1.4.90 TO 7.3.2001. THE REVENUE HAS CHALLENGED THE DELETION OF PENALTY LEVIED U/S.158BF A AS PER THE FOLLOWING GROUND:- 1. THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE AO TO LEVY PENALTY U/S.158B FA(II) IN RESPECT IT(SS)A NO.375/ AHD/2011 ACIT VS. SHRI BHAGWANDAS PUNJABI BLOCK PERIOD 01/04/90 TO 07/03/2001 - 2 - OF THE UNDISCLOSED INCOME CONFIRMED BY ITAT OF ` 4,00,000/- ONLY, AS AGAINST THE PENALTY LEVIED ON THE TOTAL UNDISCLO SED INCOME DETERMINED BY THE AO OF ` 15,20,000/-. 2. HAVING HEARD THE SUBMISSIONS OF BOTH THE SIDES, WE HAVE NOTICED THAT THE PENALTY LEVIED VIDE AN ORDER PASSED U/S.15 8BFA(II) DATED 26/03/2008 IS IN RESPECT OF AN ADDITION WHICH HAD A LREADY BEEN DELETED BY THE ITAT AHMEDABAD BENCH, WHICH HAS DULY BEEN ACKNO WLEDGED BY THE LEARNED CIT(APPEALS) AND DELETED THE CORRESPONDING PENALTY AS PER THE FOLLOWING OBSERVATION:- 4. I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE A .R. OF THE APPELLANT AND THE OBSERVATIONS OF THE ASSESSING OFF ICER IN THE PENALTY ORDER. IN THE INSTANT CASE A.O. DETERMINE D THE UNDISCLOSED INCOME OF THE APPELLANT AT RS.15,20,000 /- AS AGAINST NIL RETURNED. CIT(A) DISMISSED THE APPEAL FILED BY THE APPELLANT. ON FURTHER APPEAL THE HON.ITAT A BENCH, AHMEDABAD VIDE ITS ORDER IN IT(SS) A NO.93/AHD/2007 DATED 07-05-2010 H ELD AS UNDER:- 9. .. THE ADDITION OF RS.15,20,000/- CANNOT BE M ADE. HOWEVER, THE ASSESSEE HAS FAILED TO EXPLAIN THE SOU RCE OF INVESTMENT IN THE PROPERTY IN QUESTION IN A SUM OF RS.4 LACS. THE SAME INVESTMENT WAS ALSO NOT SHOWN TO THE REVENUE D EPARTMENT PRIOR TO THE SEARCH AND THE ASSESSEE HAS NOT ESTABL ISHED THAT HE HAD ANY INTENTION TO SHOW THE ABOVE INVESTMENT TO T HE REVENUE DEPARTMENT. THEREFORE, THE ADDITION OF RS.4 LACS S HALL HAVE TO BE MADE AS UNDISCLOSED INCOME WITHIN THE BLOCK PERIOD UNDER CHAPTER XIV B OF THE I.T.ACT. WE ACCORDINGLY, MODI FY THE ORDERS OF THE AUTHORITIES BELOW AND RESTRICT THE ADDITION TO RS.4 LACS AS AGAINST RS.15,20,000/- MADE BY THE AUTHORITIES BELO W. AS A RESULT THIS GROUND OF APPEAL OF THE ASSESSEE IS ALL OWED PARTLY. THUS ADDITION TO THE EXTENT OF RS.4 LAKHS WAS UPHEL D AND THE BALANCE ADDITION WAS DELETED. IMPUGNED PENALTY WAS LEVIED W.R. TO THE ADDITION OF RS.15.2 LAKHS. IN VIEW OF THE TRIB UNALS ORDER, IT(SS)A NO.375/ AHD/2011 ACIT VS. SHRI BHAGWANDAS PUNJABI BLOCK PERIOD 01/04/90 TO 07/03/2001 - 3 - PENALTY LEVIED W.R. TO THE ADDITION OF RS.11.2 LAKH S CANNOT SURVIVE. 3. ONCE A QUANTUM ADDITION DO NOT SURVIVE AFTER THE ORDER OF THE RESPECTED CO-ORDINATE BENCH, THEREFORE IN OUR CONSI DERED OPINION, THE LEARNED CIT(APPEALS) HAS RIGHTLY DELETED THE CORRES PONDING PENALTY. WE HEREBY AFFIRM THE SAID FINDING OF LEARNED CIT(APPEA LS). GROUND OF THE REVENUE IS HEREBY DISMISSED. 4. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED . SD/- SD/- ( A.K. GARODIA ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD; DATED 31/ 10 /2011 62..(, .(../ T.C. NAIR, SR. PS 5 0 -7 8 74 5 0 -7 8 74 5 0 -7 8 74 5 0 -7 8 74/ COPY OF THE ORDER FORWARDED TO : 1. ), / THE APPELLANT 2. -.), / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-XI, AHMEDABAD 5. 7 >> >/ // / * * * * ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD