Late Pramod Kumar jayaswal Th. Legal Heir Rajnish Kumar Jaiswal, Ranchi V. DCWT, Ranchi

WTA 1/RAN/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9571 (ITAT-RANCHI)
• Duration Of Justice: 4 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 1999-2000
• Appeal Filed On: 21-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROUSHAN SR S C
• Assessee Lawyers: S K PODDAR; M K CHOUDHARY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER WTA NO. 01/RAN/2014 (ASST. YEAR : 1999-2000) LATE PRAMOD KUMAR JAISWAL, PROP. BHAGAT & CO. THROUGH LEGAL HEIR SHRI NITESH KUMAR JAISWAL, NORTH SAMAJ STREET, THARPAKHNA, RANCHI. VS. DCWT, CENTRAL CIRCLE-2, RANCHI. PAN NO. ADEPJ 3479 P (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. PODDAR & SHRI M.K. CHOUDHARY ADV. DEPARTMENT BY : SHRI DEEPAK ROUSHAN SR. SC DATE OF HEARING : 26/10/2015. DATE OF PRONOUNCEMENT : 26/10/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF WEALTH TAX (APPEALS), RANCHI, DATED 12/08/2014. 2. THE SOLE GROUND OF APPEAL TAKEN BY THE ASSESSEE I S THAT THE COMMISSIONER OF WEALTH TAX (APPEALS) ERRED IN CONFI RMING THE PENALTY FOR RS. 25,000/- FOR CONCEALMENT OF WEALTH. 3 . FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSI NG OFFICER OBSERVED THAT THE ASSESSEE FILED WEALTH TAX RETURN FOR THE A SSESSMENT YEAR 1999- 2000 SHOWING WEALTH OF RS. 25 LAC AND CLA IMED AN EXEMPTION OF 2 WTA NO. 01/RAN/2014 RS.10 LAC. THE ASSESSING OFFICER ISSUED SHOW-CAUSE NOTICE ASKING THE ASSESSEE TO EXPLAIN THE BASIS OF VALUATION OF PROPE RTIES AND THE EXEMPTION CLAIMED BY THE ASSESSEE. THE ASSESSEE DI D NOT FILE ANY DETAILS BEFORE THE ASSESSING OFFICER AND ALSO DID N OT FURNISH THE LIST OF ASSETS IN SUPPORT OF THE FIGURE SHOWN IN THE RETURN . IN ABSENCE OF ANY DETAILS, THE ASSESSING OFFICER ESTIMATED THE TOTAL NET WEALTH OF THE ASSESSEE AT RS. 50 LAC AND PASSED EX-PARTE ORDER UNDER SECTION 16(5) OF THE WEALTH TAX ACT, 1957. THE ASSESSING OFFICER FURTHER NOTED THAT THE TRIBUNAL HAS DISMISSED THE APPEAL OF THE ASSESS EE AGAINST THE SAID ORDER OF ASSESSMENT. THEREAFTER, ASSESSING OFFICER STARTED THE PENALTY PROCEEDINGS UNDER SECTION 18(1)(C) OF THE ACT AND L EVIED PENALTY OF RS.25,000/- FOR CONCEALMENT OF WEALTH BY THE ASSESS EE BY OBSERVING THAT THE ASSESSEE HAD NOTHING TO OFFER IN ORDER TO SHOW OR PROVE THAT HE HAD NOT CONCEALED HIS WEALTH AND ALSO NOT DISCLOSED IN THE RETURN OF WEALTH OF RS. 25 LAC ON 01/09/1999. HE FURTHER OBS ERVED THAT EVEN THE EXPLANATION FURNISHED DURING THE PENALTY PROCEEDING S COULD NOT BE SUBSTANTIATED BY THE ASSESSEE. 4. ON APPEAL, COMMISSIONER OF WEALTH TAX (APPEALS) CO NFIRMED THE ACTION OF THE ASSESSING OFFICER BY OBSERVING THAT T HE ASSESSEE IN SUPPORT OF HIS SUBMISSION WHICH WOULD INDICATE THAT TWO OPINIONS ARE POSSIBLE COULD NOT FILE ANY EVIDENCE. THE ASSESSIN G OFFICER LEVIED PENALTY OF RS. 25,000/- UNDER SECTION 18(1)(C) OF T HE ACT FOR CONCEALMENT OF NET WEALTH BY THE ASSESSEE AND THE S AME WAS CONFIRMED IN APPEAL BY THE COMMISSIONER OF WEALTH TAX (APPEAL S). 5. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE FILED BE FORE US A COPY OF ORDER OF THIS BENCH OF THE TRIBUNAL PASSED IN TH E QUANTUM APPEAL OF THE ASSESSEE ON 05/07/2013 IN W.T.A.NO. 14/PAT/2007 IN ASSESSMENT YEAR 1999-2000 AND SUBMITTED THAT THE TRIBUNAL ESTI MATED THE NET WEALTH OF THE ASSESSEE AT RS. 35 LAC IN PLACE OF RS . 50 LAC ESTIMATED BY THE ASSESSING OFFICER AND CONFIRMED BY THE COMMISSI ONER OF WEALTH TAX 3 WTA NO. 01/RAN/2014 (APPEALS). HE SUBMITTED THAT SINCE THE ADDITION WA S MADE ON THE BASIS OF ESTIMATE OF NET WEALTH, THEREFORE, THE ASSESSEE WAS NOT LIABLE TO PENALTY. 6 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE SU PPORTED THE ORDERS OF THE LOWER AUTHORITIES. 7 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSING THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON REC ORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETUR N OF WEALTH TAX FOR THE ASSESSMENT YEAR 1999-2000 DISCLOSING THE NET WEALTH OF RS. 25 LAC. IN ABSENCE OF ANY DETAILS FILED BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ESTIM ATED THE NET WEALTH OF THE ASSESSEE AT RS. 50 LAC. IN THE APPEAL FILED BY THE ASSESSEE BEFORE THE TRIBUNAL, THE TRIBUNAL ESTIMATED THE NET WEALTH OF THE ASSESSEE AT RS. 35 LAC IN PLACE OF RS. 50 LAC ESTIM ATED BY THE ASSESSING OFFICER AND CONFIRMED BY THE COMMISSIONER OF WEALTH TAX (APPEALS). IN THE ABOVE FACTS, THE CONTENTION OF TH E AUTHORIZED REPRESENTATIVE OF THE ASSESSEE IS THAT AS THE NET W EALTH OF THE ASSESSEE WAS ESTIMATED BY THE ASSESSING OFFICER AT RS. 50 LA C AND THE TRIBUNAL ESTIMATED IT AGAIN AT RS. 35 LAC, THEREFORE AS THE ADDITION HAS BEEN MADE ON ESTIMATE BASIS TO THE NET WEALTH OF THE ASS ESSEE, THE ASSESSEE IS NOT LIABLE TO PAY PENALTY. WE FIND FORCE IN THE ABOVE ARGUMENT OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE AS THE NE T WEALTH OF THE ASSESSEE HAS ALSO BEEN ESTIMATED BY THE TRIBUNAL OF RS. 35 LAC IN PLACE OF RS. 25 LAC SHOWN IN THE RETURN OF INCOME FILED B Y THE ASSESSEE, IN OUR CONSIDERED OPINION, THE ASSESSEE IS NOT EXIGIBLE TO PENALTY. THE ADDITION MADE MAY BE JUSTIFIED WHILE MAKING THE ASS ESSMENT OF THE NET WEALTH OF THE ASSESSEE, BUT IN THE CASE OF LEVY OF PENALTY, IT HAS TO BE SHOWN THAT THE ASSESSEE HAS CONCEALED ITS NET WEALT H IN THE RETURN OF INCOME. AS THERE IS NO DEFINITE FINDING OF THE LOW ER AUTHORITIES AND EVEN BY THE TRIBUNAL IN THE APPEAL OF THE ASSESSEE THAT THE ASSESSEE HAS 4 WTA NO. 01/RAN/2014 CONCEALED HIS NET WEALTH IN THE RETURN OF NET WEALT H FILED BY THE ASSESSEE, THEREFORE WE ARE OF THE OPINION THAT THE ASSESSEE IS NOT EXIGIBLE TO PENALTY UNDER SECTION 18(1)(C) OF RS. 2 5,000/-. WE, THEREFORE, DELETE THE PENALTY OF RS.25,000/- AND AL LOW THE APPEAL OF THE ASSESSEE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON MONDAY, THE 26 TH DAY OF OCTOBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26 TH OCTOBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 5 WTA NO. 01/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 27/10/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27/10/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 27/10/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 27/10/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 27/10/2015 SR.PS 6. DATE OF PRONOUNCEMENT 26/10/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 27/10/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER