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Income Tax Appellate Tribunal, “SMC/D” BENCH, AHMEDABAD
Before: SHRI S.S. GODARA & SHRI MANISH BORAD
आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद �यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद �यायपीठ अहमदाबाद �यायपीठ ‘SMC/D’ अहमदाबाद। अहमदाबाद �यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC/D” BENCH, AHMEDABAD BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 2915/Ahd/2014 िनधा�रण वष�/Assessment Year: 2007-08 M/s. Sushil Traders, Vs. Income-tax Officer, Shop No. 211-S.F. Ward-3(4), 2nd Floor, The Grand Mall, Opp. Ahmedabad C.N. Vidhyalay, Ambawadi, Ahmedabad-380 015 [ अपीलाथ� अपीलाथ�/ (Appellant) अपीलाथ� अपीलाथ� �त् �त् यथ� �त् �त् यथ� यथ�/ (Respondent) यथ� Assessee by : Shri P.M. Mehta, AR Revenue by : Shri V.K. Singh, Sr DR सुनवाई सुनवाई क� क� तारीख तारीख/Date of Hearing : 26/10/2017 सुनवाई सुनवाई क� क� तारीख तारीख घोषणा क� तारीख /Date of Pronouncement: 31/10/2017 आदेश आदेश/O R D E R आदेश आदेश PER MANISH BORAD, ACCOUNTANT MEMBER: This appeal of assessee for Assessment Year 2007-08 is directed against the order of the CIT(A)-II, Ahmedabad dated 24.09.2014 vide appeal No.CIT(A)-II/Ward-3(4)/299/13-14, arising out of order under Section 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), framed on 22.03.2012 by the ITO, Ward-3(4), Ahmedabad.
The solitary grievance of the assessee is against the order of the ld. CIT(A) in confirming the penalty imposed under Section 271(1)(c) of the Act by the ld. Assessing Officer at Rs.2,89,045/- on the addition of Rs.8,59,636/-.
Briefly stated facts, as culled out from the record, are that the assessee is a firm engaged in the business of importer and supplier of scientific & laboratory instruments, lab-ware chemicals & textiles spare-parts. Its return of income was filed on 17.10.2007 declaring total income at Rs.93,340/- Case of the assessee was picked up for scrutiny assessment and notices under Section 143(2)/142(1)
ITA No. 2915/Ahd/2014 Sushil Traderas vs. ITO AY : 2007-08 - 2 – along with questionnaire were issued and served upon assessee. Necessary details, as called for, were submitted during the course of assessment proceedings; however, the assessee has shown less sales/payments received from various parties as compared to the same in the books of account and the assessee was unable to reconcile its claim. The Assessing Officer also observed that sales made to some parties amounting to Rs.8,59,636/- were not recorded in its regular books of accounts; therefore, the Assessing Officer added the same to the total income of the assessee on account of unrecorded sales. Penalty proceedings under Section 271(1)(c) of the Act were also initiated for furnishing inaccurate particulars of income/concealing particulars of income. Subsequently, the Assessing Officer vide his order dated 22.03.2012 imposed penalty of Rs.2,89,045/- being the 100% of the tax sought to be evaded under Section 271(1)(c) of the Act.
Aggrieved by the aforesaid penalty order, the assessee preferred appeal before the ld. CIT(A) who, after considering the submissions of the assessee, confirmed the penalty imposed by the Assessing Officer.
Further aggrieved, the assessee is now in appeal before us.
The ld. Counsel for the assessee submitted that the assessee has filed appeal against the quantum addition before the Tribunal and the Co-ordinate Bench of this Tribunal vide order dated 12.12.2014 partly allowed the appeal of the assessee by deleting the amount of Rs.7,73,636/- out of total addition of Rs.8,59,636/- made by the Assessing Officer. In other words, the Tribunal has confirmed the addition of Rs.86,000/- only by estimating the income from the unrecorded sales of the assessee at 10%. He, therefore, pleaded that the assessee is liable to pay the penalty on the confirmed addition only.
Learned Departmental Representative, on the other hand, supported the orders of the lower authorities.
ITA No. 2915/Ahd/2014 Sushil Traderas vs. ITO AY : 2007-08 - 3 –
We have heard the rival contentions and perused the record placed before us. Assessee’s solitary grievance is against the order of the ld. CIT(A) in confirming the penalty under Section 271(1)(c) of the Act at Rs.2,89,045/-. We observe that, in the quantum proceedings, the Co-ordinate Bench of this Tribunal in ITA No.583/Ahd/2011 vide order dated 12.12.2014 has deleted an amount of Rs.7,73,636/- out of total addition of Rs.8,59,636/- made by the Assessing Officer on account of unrecorded sales. It is not disputed that the addition was made for the unaccounted sales. It is also undisputed fact that the impugned sales were not disclosed by the assessee in its regular books of accounts. The learned Assessing Officer has made the addition for the total sales and the Tribunal sustained this addition only to the extent of 10% of the impugned sales. We thus observe that it is a clear case of furnishing of inaccurate particulars of income by way of not furnishing correct sales in the books of accounts and therefore the assessee is liable to pay the penalty on the confirmed addition of Rs.86,000/-. We order accordingly.
In the result, appeal filed by the assessee is partly allowed.
Order pronounced in the Court on 31st October 2017 at Ahmedabad.
Sd/- Sd/-
(S.S. GODARA) (MANISH BORAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated, 31/10/2017 Biju T., Sr. PS आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत अपीलाथ� अपीलाथ� / The Appellant अपीलाथ� अपीलाथ� 1. ��यथ� ��यथ� / The Respondent. ��यथ� ��यथ� 2. संबंिधत संबंिधत आयकर संबंिधत संबंिधत आयकर आयकर आयु� आयकर आयु� आयु� / Concerned CIT आयु� 3. आयकर आयकर आयु� आयकर आयकर आयु� आयु� आयु� अपील अपील अपील अपील 4. ( ) / The CIT(A)- िवभागीय िवभागीय �ितिनिध िवभागीय िवभागीय �ितिनिध �ितिनिध �ितिनिध अिधकरण अिधकरण अिधकरण अिधकरण अपीलीय अपीलीय अपीलीय अपीलीय आयकर आयकर आयकर आयकर राजोकट राजोकट/DR,ITAT, Ahmedabad, राजोकट राजोकट 5. , , गाड� फाईल गाड� फाईल /Guard file. गाड� गाड� फाईल फाईल 6. आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार TRUE COPY सहायक पंजीकार सहायक पंजीकार (Asstt.Registrar) सहायक सहायक पंजीकार पंजीकार आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण ITAT, Ahmedabad