Smt. Geetaben Nagindas Kapadia, Surat V. The Dy.CIT.,Cent.Circle-4, Surat

ITSSA 465/AHD/2013

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 2927 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 20-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 16-03-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 27-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G C DAXINI
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) IT(SS)A. NOS: 465 & 466/AHD/2013 (ASSESSMENT YEARS: 2003-04 & 2004-05) SMT. GEETABEN NAGINDAS KAPADIA, 3/1810, GHAMLAWAD, SALABATPURA, SURAT, GUJARAT-395003 V/S DEPUTY C.I.T, CENTRAL CIRCLE-4, SURAT (APPELLANT) (RESPONDENT) PAN: AAUPK4396H APPELLANT BY : NONE RESPONDENT BY : SHRI G. C. DAXINI, SR. D.R. ( )/ ORDER DATE OF HEARING : 16 -03-201 7 DATE OF PRONOUNCEMENT : 20 -03-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. IT(SS)A NOS. 465 & 466/AHD/2013 ARE TWO SEPARATE AP PEALS BY THE ASSESSEE PREFERRED AGAINST THE VERY SAME ORDER OF THE LD. CI T(A)-II, AHMEDABAD DATED 28.10.2013 PERTAINING TO A.YS. 2003-04 & 2004 -05. IT(SS)A NOS. 465 & 466/AHD/2013 . A.YS. 2003-0 3 & 2004-05 2 2. SINCE, THE FIRST APPELLATE AUTHORITY HAS DECIDED TH E IMPUGNED APPEALS BY A COMMON ORDER; BOTH THESE APPEALS WERE HEARD TOGETHE R AND ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. THE COMMON GRIEVANCE IN BOTH THESE APPEALS RELATE T O THE LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOTICE; WE, THEREFORE, DECIDED TO PROCEED EX PARTE. THE LD. D.R. WAS HEARD AT LENGTH WHO RELIED UPON THE FINDINGS OF THE REVENUE AUTHORITIES. 5. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. WE HAVE ALSO CONSIDERED THE ASSESSMENT ORDER MADE U/S. 143(3) R.W.S. 153C OF THE ACT DATED 31.12.2007. 6. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT SEARC H AND SEIZURE OPERATIONS U/S. 132 OF THE ACT WAS CARRIED OUT ON 14.12.2005 A T THE RESIDENTIAL PREMISES OF SHRI NAGINDAS T. KAPADIA AND SHRI ASHOK H. JARIWALA OF TNK GROUP. DURING THE COURSE OF THE ASSESSMENT PROCEEDI NGS, THE A.O. FOUND CERTAIN CREDIT ENTRIES IN THE BANK ACCOUNTS WHICH W ERE IN THE NAME OF THE ASSESSEE. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOU RCE OF CREDIT. ON RECEIVING NO PLAUSIBLE REPLY, A SUM OF RS. 64,013/- WAS ADDED IN A.Y. 2003- 04 AND RS. 67,110/- WAS ADDED IN A.Y. 2004-05 AND S IMULTANEOUSLY PENAL PROCEEDINGS U/S. 271(1)(C) OF THE ACT WERE INITIATE D. IT(SS)A NOS. 465 & 466/AHD/2013 . A.YS. 2003-0 3 & 2004-05 3 7. IN THE PENAL PROCEEDINGS, THE ASSESSEE STRONGLY OBJ ECTED TO THE LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. THE ASSESSEE STR ONGLY CONTENDED THAT THE MAJOR AMOUNTS FOUND TO BE DEPOSITED IN THE BANK ACC OUNTS HAD BEEN RECEIVED FROM VARIOUS PERSONS IN THE FORM OF LOANS AND SINCE THE IMPUGNED BANK ACCOUNTS WERE NOT PART OF HER BUSINESS ACCOUNT S, THEREFORE, WERE NOT REFLECTED IN THE BALANCE SHEET OF PROPRIETARY CONCE RN AND SINCE THE INTEREST INCOME IS EXEMPT U/S. 80L OF THE ACT, THE SAME WAS NOT SHOWN IN THE RETURN OF INCOME. 8. THIS EXPLANATION OF THE ASSESSEE DID NOT FIND ANY F AVOUR WITH THE A.O. WHO COMPLETED THE PENAL PROCEEDINGS BY LEVYING PENALTY OF RS. 19,204/- IN A.Y. 2003-04 AND RS. 20,133/- IN A.Y. 2004-05. 9. IT IS TRUE THAT THE EXPLANATION OF THE ASSESSEE DID NOT FIND ANY FAVOUR WITH THE A.O. IT IS EQUALLY TRUE THAT IT IS NOT A CASE W HERE THE EXPLANATION OF THE ASSESSEE CAN BE SAID TO BE ABSURD OR UNCONVINCING. LOOKING TO THE SMALLNESS OF THE PENALTY AMOUNT INVOLVED, WE DO NOT FIND THES E BE CONSIDERED TO BE FIT CASES FOR THE LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. WE, ACCORDINGLY, SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO DELETE THE IMPUGNED PENALTIES LEVIED U/S. 271(1)(C) OF THE ACT . 10. APPEALS FILED BY THE ASSESSEE ARE ACCORDINGLY ALLOW ED. ORDER PRONOUNCED IN OPEN COURT ON 20 - 03- 20 17 SD/- SD/- (RAJPAL YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER