The ITO, Ward 1(3), RAJKOT-GUJARAT V. Shri Shukal Nehal Chimanlal, RAJKOT-GUJARAT

ITSSA 60/RJT/2009

• Counselvise Citation: [2011] 124 COUNSELVISE.COM (IT) 8170 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-06-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 25-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JM SAHAY
• Assessee Lawyers: J C RANPURA
• Keywords: Block assessment
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T(SS)A. NO.60, 61, 62 & 63/RJT/2009 (ASSESSMENT YEARS 2001-02, 2004-05, 2005-06 & 2006- 07) ITO, WD.1(3) VS SHRI SUKLA NEHAL CHIMANLAL RAJKOT NEHAL, 5, SAU.KALA KENDRA RAJKOT PAN : ARKPS4635G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JM SAHAY RESPONDENT BY: SHRI JC RANPURA O R D E R PER N.R.S. GANESAN, JM ALL THE FOUR APPEALS OF THE REVENUE ARE DIRECTED A GAINST THE RESPECTIVE ORDER OF THE CIT(A) FOR THE ASSESSMENT YEARS 2001-0 2, 2004-05, 2005-06 & 2006- 07. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN ALL THE FOUR APPEALS, WE HEARD THEM TOGETHER AND ARE DISPOSING OFF THE SAME BY THIS COMMON ORDER. 2. IN ALL THE FOUR APPEALS, THE ISSUE ARISES FOR CO NSIDERATION IS LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. 3. SHRI PREM PRAKASH, THE LD.DR SUBMITTED THAT THER E WAS A SEARCH IN THE PREMISES OF THE ASSESSEE ON 22-03-2006. DURING THE COURSE OF SEARCH OPERATION INCRIMINATING MATERIALS WERE FOUND AND THE ASSESSEE FILED RETURNS OF INCOME DECLARING UNDISCLOSED INCOME OF RS.8,00,000 EACH FO R AYS 2001-02 & 2004-05; RS.10,00,000 FOR A.Y 2005-06 AND RS. 15,00,000 FOR AY 2006-07. THE ASSESSING OFFICER ACCEPTED THE RETURNS FILED U/S 153C OF THE ACT; HOWEVER, LEVIED PENALTY U/S 271(1)(C) OF THE ACT SINCE THE UNDISCLOSED INCOME D ECLARED IN THE RETURNS OF INCOME U/S 153 WAS NOT DISCLOSED TO THE DEPARTMENT EARLIER. REFERRING TO THE ORDER OF THIS TRIBUNAL IN THE CASE OF SHRI SHANTILA L JERAMBHAI MAHESHWARI ITSSA NO.60, 61, 62 & 63/RJT/2009 2 IT(SS)A NO.69/RJT/2009 ORDER DATED 03 RD JUNE, 2011 THE LD DR VERY FAIRLY SUBMITTED THAT ON IDENTICAL SET OF FACTS THIS TRIBU NAL HAS CONFIRMED AN IDENTICAL ORDER OF THE CIT(A). 4. WE HAVE HEARD SHRI JC RANPURA, THE LD.REPRESENTA TIVE OF THE ASSESSEE ALSO. THE LD.REPRESENTATIVE FOR THE ASSESSEE SUBMI TTED THAT ON IDENTICAL SET OF FACTS IN THE CASE OF SHANTILAL JERAMBHAI MAHESHWARI (SUPRA) THIS TRIBUNAL FOUND THAT SINCE THE ASSESSEE HAS DISCLOSED THE RETURN OF INCOME IN THE BLOCK ASSESSMENT PROCEEDINGS, THIS TRIBUNAL FOUND THAT TH E CIT(A) HAS RIGHTLY DELETED THE PENALTY. SINCE THE FACTS ARE ADMITTEDLY IDENTI CAL, ACCORDING TO THE LD.REPRESENTATIVE, THE DECISION OF THIS TRIBUNAL IN THE CASE OF SHANTILAL JERAMBHAI MAHESHWARI (SUPRA) IS APPLICABLE TO THE FACTS OF TH E CASE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD.DR AND THE LD.REPRESENTATIVE FOR THE ASSESSEE. ADMITTEDLY THE RE WAS A SEARCH IN THE PREMISES OF THE ASSESSEE ON 22-03-2006 AND THE ASSE SSEE DECLARED UNDISCLOSED INCOME OF RS.8,00,000 EACH FOR AYS 2001-02 & 2004-0 5; RS.10,00,000 FOR A.Y 2005-06 AND RS. 15,00,000 FOR AY 2006-07. ADMITTED LY THE ASSESSING OFFICER ACCEPTED THE RETURNS FILED BY THE ASSESSEE WITHOUT ANY FURTHER ADDITION. THE FACT REMAINS THAT THE ASSESSEE HAS DISCLOSED ALL THE INC OME IN THE RETURNS FILED CONSEQUENT TO THE NOTICES ISSUED U/S 153C OF THE AC T. ONCE THE RETURNS WERE FILED U/S 153C, ALL PENDING PROCEEDINGS FOR THOSE A SSESSMENT YEARS STAND ABATED AND THEREFORE, THE INCOME HAS TO BE COMPUTED ONLY O N THE BASIS OF THE RETURNS FILED BY THE ASSESSEE IN RESPONSE TO NOTICES ISSUED U/S 153A / 153C OF THE ACT. ON IDENTICAL SET OF FACTS THIS TRIBUNAL BY FOLLOWIN G ITS EARLIER ORDER IN ITA NO.68/RJT/2009 CONFIRMED THE IDENTICAL ORDER OF CIT (A) IN THE CASE OF SHRI SHANTILAL JERAMBHAI MAHESWARI (SUPRA). IN THIS CAS E ALSO THE ASSESSEE HAS DISCLOSED THE INCOME FOR ALL THE ASSESSMENT YEARS U NDER CONSIDERATION CONSEQUENT TO THE SEARCH OPERATION AND NO FURTHER A DDITION WAS MADE BY THE ASSESSING OFFICER. THE RETURN, IF ANY PENDING ON T HE DATE OF SEARCH, SHALL STAND ABATED AND THEREFORE, IN OUR OPINION, THE CIT(A) HA S RIGHTLY DELETED THE PENALTY. ITSSA NO.60, 61, 62 & 63/RJT/2009 3 WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE L OWER AUTHORITY. ACCORDINGLY WE CONFIRM THEM. 6. IN THE RESULT, ALL THE FOUR APPEALS OF THE REVEN UE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17-06-2011. SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 17 TH JUNE, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-IV, AHMEDABAD 4. THE CIT, CENTAL-II, AHMEDABAD 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT