NEETA NITIN MEHTA, MUMBAI V. ACIT CIR 22(2),

ITSSA 72/MUM/2009

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8275 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 06-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 04-07-2012
• Assessment Year: misc
• Appeal Filed On: 30-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V V SHASTRI
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Search and seizure; Block assessment

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI .. , ! ' #$ %& , ' ', ( BEFORE SHRI R.S.SYAL, AM AND SHRI AMIT SHUKLA, JM ($#% * #+,- ) ./ IT(SS)A NO.72/MUM/2009 (BLOCK ASSESSMENT PERIOD :1990-91 TO 1999-2000) SMT.NEETA NITIN MEHTA 215 SWASTIK CHAMBERS SION TROMBAY ROAD, CHEMBUR MUMBAI 400 071. PAN : AAHPM5149F. THE ASST.COMMISSIONER OF INCOME-TAX CIRCLE 22(2) MUMBAI. ( 01 / // / APPELLANT) 2 2 2 2 / VS. ( 3401/ RESPONDENT) 01 5 55 5 6 6 6 6 / APPELLANT BY : SHRI M.SUBRAMANIAN 3401 5 6 5 6 5 6 5 6 / RESPONDENT BY : SHRI V.V.SHASTRI 2 5 $! / / / / DATE OF HEARING : 04.07.2012 789 5 $! / DATE OF PRONOUNCEMENT : 06.07.2012 ' % ' % ' % ' % / / / / O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 17.03.2009 UPHOLDING PENALTY OF ` 1,31,000 IMPOSED BY THE ASSESSING OFFICER U/S 158BF A(2) OF THE ACT IN RELATION TO THE BLOCK PERIOD 1990-91 TO 1999-2000 A ND 1.4.1999 TO 15.3.2000. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE ALONG WITH OTHER FAMILY MEMBERS WAS SUBJECTED TO SEARCH AND SEIZURE PROCEEDINGS. BLOCK ASSESSMENT ORDER WAS PASSED MAKING ADDITION INTER ALIA TOWARDS UNEXPLAINED JEWELLERY. TOTAL JEWELLERY VALUED AT ` 25.56 LAKH WAS FOUND AT THE TIME OF SEARCH WHICH INCLUDED JEWELLERY WORTH ` 8.36 LAKH FOUND AT THE ASSESSEES HUSBANDS RESIDENCE AND JEWELLERY WORTH ` 17.20 WAS FOUND FROM LOCKER WITH HONG KONG BANK. THE ASSESSEE SUBMITTED THAT JEWELLERY WORTH ` 13.10 LAKH WAS DECLARED UNDER VDIS 1997 AND MATCHED IT AGAINST THE JEWELLER Y FOUND AT THE TIME OF IT(SS)A NO.72/MUM/2009 SMT.NEETA NITIN MEHTA 2 SEARCH. THE LEARNED CIT(A) IN QUANTUM PROCEEDINGS R ECORDED A FINDING THAT OUT OF JEWELLERY WORTH ` 25.56 LAKH THERE WAS ONLY JEWELLERY WORTH ` 4.13 LAKH WHICH WAS NOT COVERED BY VDIS DECLARATION. AFTER CO NSIDERING VARIOUS SUBMISSIONS ADVANCED ON BEHALF OF THE ASSESSEE, TH E LEARNED CIT(A) SUSTAINED THE ADDITION ON ACCOUNT OF JEWELLERY AT ` 1.98 LAKH. WHEN, IN THE APPEAL FILED BY THE ASSESSEE, THE MATTER CAME UP BEFORE THE TRIBUN AL, THE SAID ADDITION OF ` 1.98 LAKH WAS CONFIRMED. IT IS ON THIS AMOUNT OF ADDITIO N ON WHICH PENALTY U/S 158BFA(2) HAS BEEN IMPOSED AND CONFIRMED. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED FROM THE ORDER PASSED BY THE TRIBUNAL IN QUANTUM PROCEEDINGS DATED 06.12.2007 IN IT(SS)A NO.296/MUM/ 2003 THAT THE ASSESSEE REQUESTED THE TRIBUNAL TO GIVE BENEFIT OF CBDT INST RUCTION NO.1916 DATED 11.05.1994. HOWEVER THE TRIBUNAL CONSIDERING THE EN TIRETY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, CHOSE TO UPHELD THE ADDI TION. THE LEARNED AR HAS PLACED ON RECORD A COPY OF THE ORDER PASSED BY THE TRIBUNAL IN THE CASE OF SHRI AJIT G.MEHTA, ANOTHER FAMILY MEMBER COVERED BY THE SAME SEARCH, IN WHICH CASE, THE TRIBUNAL VIDE ITS ORDER DATED 11 TH FEBRUARY, 2010 HAS DELETED THE PENALTY LEVIED UNDER SIMILAR CIRCUMSTANCES U/S 158B FA(2). FROM THE SAID ORDER, A COPY OF WHICH IS AVAILABLE ON RECORD, IT IS SEEN THAT THE ADDITION OF ` 2,60,182 WAS SUSTAINED BY THE TRIBUNAL ON ACCOUNT OF UNEXPLA INED JEWELLERY AFTER CONSIDERING THE SUBMISSIONS ADVANCED ON BEHALF OF T HE ASSESSEE. ON THAT AMOUNT THE PENALTY WAS IMPOSED BY THE AO, WHICH CAM E TO BE DELETED BY THE TRIBUNAL. THE LD. DR DID NOT INVITE OUR ATTENTION TOWARDS ANY MATERIAL TO INDICATE THAT THE SAID ORDER PASSED UNDER SIMILAR C IRCUMSTANCES HAS BEEN REVERSED OR MODIFIED BY THE HONBLE HIGH COURT. SIN CE THE FACTS AND CIRCUMSTANCES OF THE INSTANT CASE ARE MUTATIS MUTANDIS SIMILAR TO THOSE CONSIDERED AND DECIDED IN THE CASE OF SHRI AJIT G.M EHTA, RESPECTFULLY FOLLOWING THE PRECEDENT, WE ORDER FOR THE DELETION OF PENALT Y. IT(SS)A NO.72/MUM/2009 SMT.NEETA NITIN MEHTA 3 4. : $; '2 :$ 5 < $ 5 =$ -> ? IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THIS 06 TH JULY, 2012. . ' % 5 789 @'2; 8 5 A SD/- SD/- (AMIT SHUKLA) (R.S.SYAL) ' ' ' ' ' ' ' ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; @'2 DATED 06 TH JULY, 2012. DEVDAS* ' % 5 3'$#B , B9$ ' % 5 3'$#B , B9$ ' % 5 3'$#B , B9$ ' % 5 3'$#B , B9$/ COPY OF THE ORDER FORWARDED TO : 1. 01 / THE APPELLANT 2. 3401 / THE RESPONDENT. 3. C () / THE CIT(A)-XXII 4. C / CIT 5. B+A 3'$'2 , , / DR, ITAT, MUMBAI 6. AD / GUARD FILE. ' %2 ' %2 ' %2 ' %2 / BY ORDER, 4B$ 3'$ //TRUE COPY// E E E E/ // /- = - = - = - = ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI