SHRI VIPULKUMAR VASANTRAY SHAH,BOTAD vs. THE INCOME TAX OFFICER,WARD-1(3), BHAVNAGAR

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ITA 3385/AHD/2014Status: DisposedITAT Ahmedabad31 October 2017AY 2007-084 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal upheld the penalty related to an addition of Rs. 1,16,572/-. However, penalties related to other cash credits and interest income were deleted as those additions were either deleted or restored by the ITAT in quantum proceedings.

What were the facts?

The assessee appealed against a penalty levied under Section 271(1)(c) for unexplained cash credit and undisclosed interest income. The penalty was based on additions made in the assessment order.

What were the issues?

The legality of the penalty levied under Section 271(1)(c) in light of subsequent decisions in quantum appeal proceedings.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD

Before: SHRI N.K. BILLAIYA & SHRI MAHAVIR PRASAD

For Respondent: Shri Prasoon Kabra, Sr.D.R
Hearing: 31/10/2017

आदेश / O R D E R

PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : This is an appeal by the assessee against the order of the Commissioner of Income Tax(Appeals)-XX, Ahmedabad, dated 30/09/2014 for the Assessment Year (AY) 2007-08, on the following Grounds: i. On the facts and in the circumstances of the case, the learned CIT(A) erred in upholding the legality of the Assessing Officer's order passed u/s.271(1)(c) of the I.T. Act levying penalty of Rs.2,44,440/-.

ITA No. 3385/Ahd/2014 Shri Vipulkumar Vasantray Shah vs. ITO Asst.Year –2007-08 - 2 - ii. Without prejudice to the aforesaid ground, on the facts and in the circumstance of the case, the learned CIT(A) erred in confirming penalty levied by the Assessing Officer u/s.271(1)(c) of the I.T. Act amounting to Rs.2,44,440/- with reference to the addition confirmed by the CIT(A) in quantum appeal.

2.

The relevant facts as culled out from the materials on record are as under:- In this case, penalty was levied u/s.271(1)(c) of the Act of Rs.2,44,440/- on account of unexplained cash credit u/s.68 of Rs.8,53,806/- (Rs.16,50,000-Rs.7,96,194) and Undisclosed Interest income of Rs.11,793/-.

3.

Details regarding breakup of Unexplained Cash Credit of Rs.8,53,806/-. Out of which Rs.4,25,000/- from Mother-in-Law. This issue was restored back to Ld. AO by the ITAT in appellant’s quantum proceedings bearing ITA No.3148/Ahd/2011 dated 24/04/2015 vide Para 2.1, Page No.4. The aforesaid issue is duly accepted by ld. AO during the course of assessment proceedings while passing order u/s.143(3) r.w.s. 254 of the Act dated 26/11/2015.

4.

So far cash received from wife’s bank account Rs.1,00,000/- is concerned. Same was deleted by the ITAT in appellant’s quantum proceedings bearing ITA No.3148/Ahd/2011 dated 24/04/2015 vide Para 24, Page No. 5.

ITA No. 3385/Ahd/2014 Shri Vipulkumar Vasantray Shah vs. ITO Asst.Year –2007-08 - 3 - 5. So far addition of Rs.1,16,572/- is concerned. Revenue was not inclined by saving of assessee. The same addition was uphold by the Hon’ble ITAT in appellant’s quantum proceedings bearing ITA No.3148/Ahd/2011 dated 24/04/2015 vide Para 2.3, Page No.5 and in penalty proceedings assessee could not give any satisfactorily reply before us. Therefore, we upheld the penalty of Rs.1,16,572/-.

6.

As regard to cash withdrawal from account of State Bank of Sauratra Rs.73,000/- and Rs.30,000/-. Same was deleted by the ITAT in appellant’s quantum proceedings bearing ITA No.3148/Ahd/2011 dated 24/04/2015 vide Para 2.4 Page No.6.

7.

In view of the above observation/direction of The ITAT in ITA No.3148/Ahd/2011 dated 24/04/2015, we confirm the penalty of Rs.1,16,572/- and delete the penalty rest of the matter.

8.

In the result, appeal filed by the assessee is partly allowed. This Order pronounced in Open Court on 31/10/2017

Sd/- Sd/- एन.के. �ब�लैया महावीर �साद (लेखा सद�य) (�या�यक सद�य) ( MAHAVIR PRASAD ) ( N.K. BILLAIYA ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 31/10/2017 Priti Yadav, sr.PS

ITA No. 3385/Ahd/2014 Shri Vipulkumar Vasantray Shah vs. ITO Asst.Year –2007-08 - 4 -

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-XX, Ahmedabad. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad True Copy 1. Date of dictation 25/10/2017 (dictation-pad 3 pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member …31/10/2017 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S……. 7. Date on which the file goes to the Bench Clerk………………… 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………

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