CHANDRAKANTA PRADHAN,BHUBANESWAR vs. ITO, BHUBANESWAR

1 ITA No.37 6/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 7/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 8/CTK /20 15: A sse ssment Yea r : 20 10- 2011 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK

BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.376/CTK/2015: Assessment Year : 2010-2011 ITA No.377/CTK/2015: Assessment Year : 2010-2011 ITA No.378/CTK/2015: Assessment Year : 2010-2011

Chandrakanta Pradhan, Plot Vs. ITO, Ward 1(2), No.885, Kapil Prasad, Old Bhubaneswar. Town, Bhubaneswar. PAN/GIR No.AGWPP 8905 D (Appellant) .. ( Respondent)

Assessee by : Shri D.K.Sheth, AR Revenue by : Shri D.K.Pradhan, DR

Date of Hearing : 08/08/ 2017 Date of Pronouncement : 09 /08/ 2017

O R D E R Per N.S.Saini, AM These are appeals filed by the assessee against the separate orders

of the CIT(A)-1,Bhubaneswar, all dated 22.7.2015 for the assessment

year 2010-2011.

the CIT(A) erred in confirming the penalty levied u/s.271A of Rs.25,000/-.

authorities and materials available on record. The undisputed facts of the

case are that the Assessing Officer observed that the assessee was

required to produce books of account but he could not produce any books

2 ITA No.37 6/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 7/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 8/CTK /20 15: A sse ssment Yea r : 20 10- 2011 of accounts and only produced purchase bills/invoice. Therefore, the

Assessing Officer observed that the assessee has not maintained any

books of account as required u/s.44AA(i) of the Act and levied penalty of

R.25,000/- u/s.271A of the Act for non-maintenance of books of account

in violation of section 44AA of the Act.

assessee to explain the reason for non-maintenance of books of account

by the assessee. Hence, we find no good and justifiable reason to

interfere with the order of the CIT(A), which is hereby confirmed and

ground of appeal of the assessee is dismissed.

the CIT(A) erred in confirming the levy of penalty of Rs.31,085/-

u/s.271B of the Act.

bank accounts of the assessee that there were deposits to the tune of

Rs.62,16,989/- during the relevant previous year. The total deposits

were considered to be the turnover of the assessee and the profit was

determined on estimation thereon. Since the turnover was taken at

Rs.62,16,989/-, which exceeds Rs.40 lakhs, the Assessing Officer initiated

penalty proceedings u/s.271B of the Act for failure on the part of the

3 ITA No.37 6/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 7/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 8/CTK /20 15: A sse ssment Yea r : 20 10- 2011 assessee to get the accounts audited u/s.44AB and levied penalty of

Rs.31,085/- u/s.271B of the Act. @ ½% of the turnover of

Rs.62,16,989/-.

lower authorities, we find that the Assessing Officer has levied the penalty

u/s.271B of the Act on the ground that the assessee has not got its

account audited u/s.44AB of the Act. We also find that the Assessing

Officer himself has held that the assessee has not produced books of

account, bills and voucher and, therefore, determined the income of the

assessee by applying 7.67% to the gross sales of Rs.62,16,989/-. Thus,

when the Assessing Officer has come to the conclusion that the assessee

has not maintained books of account, therefore, it cannot be produced

before him and the question of getting its accounted audited u/s.44AB

does not arise. The Assessing Officer has levied penalty u/s.271A of the

Act for non-maintenance of books of account by the assessee, which is

confirmed by us in the appeal filed by the assessee. Hence, we set aside

the orders of lower authorities and delete the penalty of Rs.31,085/-

levied u/s.271B of the Act and allow the ground of appeal of the assessee.

4 ITA No.37 6/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 7/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 8/CTK /20 15: A sse ssment Yea r : 20 10- 2011 12. In ITA No.378/CTK/2015, the grievance of the assessee is that

the CIT(A) erred in confirming the levy of penalty of Rs.26,108/-

u/s.271(1)(c) of the Act.

assessee had disclosed lesser turnover of Rs.39,31,172/- whereas the

turnover which was quantified on the basis of deposit in the bank account

at Rs.62,16,989/-. Therefore, the Assessing Officer estimated the profit

@ 7.67% of the total turnover of Rs.62,16,989/-. Thereafter, the

Assessing Officer levied penalty under section 271(1)(c) of the Act for

furnishing inaccurate particulars of income of Rs.26,108/-.

assessment order, the income was estimated, the assessee cannot be

treated to have concealed his income or have furnished any inaccurate

particulars of his income.

was clear case of suppression of turnover to the extent of Rs.22,85,817/-

(Rs.62,16,989 – Rs.39,31,172/-). This suppression of turnover could not

have come to light had the Assessing Officer not examined the bank

accounts. The assessee has not given any convincing reasons for not

disclosing the actual turnover.

as the income of the assessee was estimated by the Assessing Officer but

5 ITA No.37 6/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 7/CTK /20 15: A sse ssment Yea r : 20 10- 2011 ITA No.37 8/CTK /20 15: A sse ssment Yea r : 20 10- 2011 could not controvert the findings of the CIT(A) that this was a case of

suppression of turnover to the extent of Rs.22,85,817/-. Hence, we find

no good and justifiable reason to interfere with the order of the CIT(A),

which is hereby confirmed and the ground of appeal of the assessee is

dismissed.

Order pronounced in the open court on 09 /08/2017. Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 09/08/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The appellant :Chandrakanta Pradhan, Plot No.885, Kapil Prasad, Old Town, Bhubaneswar. 2. The Respondent. ITO, Ward-1(2), Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// BY ORDER,

SR.PRIVATE SECRETARY ITAT, Cuttack