SATYANARAIN SONI,JAIPUR vs. ITO, JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 752/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2010-11 cuke Satyanarayan Soni, Income Tax Officer, Vs. Prop.- M/s Radhika Jewellers, Ward -7(2), Jaipur. Kunj Gali, Phagi, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: ABXPS 3995 C vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Jain (CA) jktLo dh vksj ls@ Revenue by : Shri P.P. Meena (JCIT) lquokbZ dh rkjh[k@ Date of Hearing : 02/05/2018 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 03/05/2018 vkns'k@ ORDER

PER: BHAGCHAND, A.M. This is the appeal filed by the assessee emanates from the order passed by the ld. CIT(A)-III, Jaipur dated 18/5/2016 for the A.Y. 2010-11. The only issued involved in the appeal is confirming the penalty of Rs. 61773/- levied U/s 271(1)(c) of the Income Tax Act, 1961 (in short the Act).

ITA 752/JP/2016_ 2 Satyanarayan Soni Vs ITO

application being M.A. No. 110/JP/2017 and vide order dated 08/1/2018,

the ITAT recalled its order dated 14/3/2017.

wherein he challenged the issuance of notice for levying of penalty U/s

271(1)(c) of the Act for not specifically pointed out whether penalty was

proposed on concealment of particulars of income or for furnishing

inaccurate particulars of income.

The Assessing Officer has initiated the penalty in the assessment order

itself for concealing the particulars of income and furnishing inaccurate

particulars of income. Thus, the assessee was sufficiently noticed about

the limbs on which the penalty initiated on both the grounds for

concealing of particulars of income and furnishing inaccurate particulars

of income. There was a survey operation at the business premises of the

assessee. The assessee has not maintained books of account except a

register where he used to write details. In the return of income, the

assessee shown his income on estimate basis and books of account viz

cash book, ledger, purchase/sales vouchers and expenses vouches were

not maintained. The assessee has shown meager gross profit of Rs.

ITA 752/JP/2016_ 3 Satyanarayan Soni Vs ITO

23,365/- on sales of Rs. 2,52,836/-. There were entries in the loose

papers found during the survey, which suggests that total sales recorded

in these papers were taken into consideration to workout taxable income.

The estimate of unaccounted income was based on the documents found

during the survey operation U/s 133A of the Act. In view of these facts,

the additional ground raised by the assessee has not merit and the same

is dismissed.

that the Assessing Officer has levied the penalty only of Rs. 20,600/- for

furnishing inaccurate particulars of income. However, it is noticed that the

assessee has filed appeal before the ld. CIT(A) taking the amount of

penalty at Rs. 61,773/- and the ld. CIT(A) has also confirmed the amount

of this penalty, thus there is apparent mistake. The Assessing Officer has

levied penalty on the estimated the sales at Rs. 3.00 lacs and by applying

the GP rate @ 30% made addition of Rs. 66,635/- The addition of Rs.

6,635/- is based on estimates of sales and then estimated the G.P. rate @

30%. Thus, this is an addition based on estimates. In our considered view

of these facts, we direct to delete the penalty of Rs. 20,600/- levied by

the Assessing Officer.

ITA 752/JP/2016_ 4 Satyanarayan Soni Vs ITO 6. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 03/05/2018.

Sd/- Sd/- ¼fot; iky jko fot; iky jko fot; iky jko½ fot; iky jko ¼Hkkxpan Hkkxpan Hkkxpan½ ½ ½ ½ Hkkxpan (VIJAY PAL RAO) (BHAGCHAND) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj Tk;iqj@Jaipur Tk;iqj Tk;iqj fnukad@Dated:- 03rd May, 2018 *Ranjan आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- Shri Satyanarayan Soni, Jaipur. 1. izR;FkhZ@ The Respondent- The ITO, Ward- 7(2), Jaipur. 2. vk;dj vk;qDr@ CIT 3. vk;dj vk;qDr¼vihy½@The CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File (ITA No. 752/JP/2016) 6. vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत