SHRI NARINDER SINGH,ROPAR vs. ITO, W-2(2), ROPAR

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH

HEARING THROUGH: PHYSICAL MODE

᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य
BEFORE: SHRI. VIKRAM SINGH YADAV, AM

आयकर अपील सं./ ITA No. 1475/CHD/2019
िनधाᭅरण वषᭅ / Assessment Year : 2010-11

Shri Narinder Singh
Village Sanana
District Ropar
Punjab
बनाम

The ITO
Ward 2(2)
Ropar, Punjab

᭭थायी लेखा सं./PAN NO:BLEPS1227F
अपीलाथᱮ/Appellant

ᮧ᭜यथᱮ/Respondent

िनधाᭅᳯरती कᳱ ओर से/Assessee by :

None
राज᭭व कᳱ ओर से/ Revenue by :

Dr. Ranjeet Kaur, Sr. DR

सुनवाई कᳱ तारीख/Date of Hearing :
01/01/2025
उदघोषणा कᳱ तारीख/Date of Pronouncement : 21/01/2025

आदेश/Order

PER VIKRAM SINGH YADAV, AM:

This is an appeal filed by the Assessee against the order of the Ld. CIT(A)-1,
Chandigarh dt. 06/08/2019 pertaining to Assessment Year 2010-11 wherein the assessee has challenged the sustenance of levy of penalty under section 271(1)(c) of the Act amounting to Rs. 2,56,500/-.
2. Briefly, the facts of the case are that the assessment was completed under section 143(3) of the Act vide order dt. 05/02/2013 wherein the AO has brought to tax a sum of Rs. 8,10,000/- as unexplained cash deposit in the bank account of the assessee and penalty proceedings were initiated for concealing the particulars of income and notice under section 274 r.w.s 271(1)(c) was issued. Thereafter after taking into consideration the submissions filed by the assessee and the fact that the assessee has not filed any appeal against the quantum proceedings, the AO held that it is a case of concealment of particulars of his income and he recorded his satisfaction and penalty amounting to Rs. 2,56,500/- was levied on the assessee.

“5.2 HELD: I have perused the order of the Assessing Officer, examined the reply of the assessee and perused the assessment record. Brief facts of the case are the assessment framed by the AO at an income of Rs. 10,90,600 after making an addition of Rs.8,75,000/- by treating it as income from undisclosed sources on the basis of cash flow statement.
Penalty order passed u/s 271(1)(c) of the Act for concealment particulars of income.
During the appellate proceedings, the appellant vide letter dated 11.06.2019 submitted that no transactions amounting to Rs.1,85,000/- and Rs.4,50,000/- had been made and reflecting in bank statement and AO has not considered the documentary evidence in respect of cash deposit of Rs.1,00,000/- & Rs.1,40,000/- and wrongly levied the penalty amounting to Rs.2,56,500/-. The ICICI Bank statement of the assessee of F.Y.2009-10 has been carefully perused and found no entry of cash credit amounting to Rs. 1,85,000/- made on 17.08.2009 and Rs.4,50,000/- made on 06.10.2009. However, all four entries of cash credit totaling amounting to Rs.8,75,000/- are duly reflecting in cash flow statement submitted by the appellate before the Assessing Officer during the assessment proceedings. The onus is, therefore, upon the assessee to prove the source of cash credit reflecting in cash flow statement. The assessee in fact, failed to submit documentary evidence in support of these cash credits during the assessment as well as appellate proceedings. Therefore, penalty amounting to Rs.2,56,500/- imposed on unexplained cash credit of Rs.8,75,000/- is hereby confirmed. TheAO has duly initiated penalty in the assessment order for concealment of particulars of income. Appellant was given due opportunity during penalty proceedings. Hence legal objections raised are rejected. The Grounds of Appeal Nos. 2 to 5 are dismissed.
4. Being aggrieved, the assessee carried the matter in appeal before us.
5. None appeared on behalf of the assessee nor was any adjournment application filed. However, on perusal of records, it is noted that the assessee had filed a declaration under the Vivad Se Vishvas Scheme and claimed refund of tax and penalty and the matter of refund claim is near resolution with issuance of amended Form 3 by the Competent authority and it was requested to adjourn the matter which was acceded to and the matter has now come again for hearing today. However, as noted earlier, none has appeared on behalf of the assessee nor there is any further communication.
6. The Ld. Sr Dr was also heard and it was submitted that it is an accepted fact that the assessee has moved a declaration for settlement of tax dispute under the Vsv
Scheme and taking the same into consideration, the Coordinate Bench in ITA no.
1039/Chd/2019 vide order dated 8/08/2023 has dismissed the assessee’s appeal in quantum proceedings as withdrawn and a copy of the said order was placed on record.
7. Having heard the ld Sr DR and after perusal of the records, it is an accepted fact that the quantum appeal has already been dismissed by the Coordinate Bench as withdrawn in view of the assessee opting for the settlement under the VsV Scheme and in light of same, where the tax arrears include tax and penalty levied and the assessee has opted for settlement which has happened in the instant case with the issuance of Form 3 and it is only certain amendment which has been sought in the said Form 3, the present appeal has to be withdrawn by the assessee. Even though the assessee has sought some more to pursue the competent authority for issue of amended Form 3
which we request the Competent authority to expedite and consider as per law, at the same time, no useful purpose would be served in adjourning the matter any further. In view of the above, the appeal of the assessee is dismissed as withdrawn. However, it is observed that in case Assessee fails to avail the benefit of this scheme due to any technicalities, then Assessee will be at liberty to get this appeal revived by filing a Misc.
Application. This application should be filed within limitation period provided u/s 254(2) of the Act.
8. In light of aforesaid, the appeal of the assessee is dismissed as withdrawn.
(Order pronounced in the open Court on 21/01/2025) िवᮓम ᳲसह यादव

(VIKRAM SINGH YADAV)

लेखा सद᭭य / ACCOUNTANT MEMBER
AG
Date: 21/01/2025
आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to :

आदेशानुसार/ By order,
सहायक पंजीकार/