Income Tax Appellate Tribunal - Amritsar
The Asstt. Commissioner Of Income Tax, ... vs Sh. Jagdish Sawhney, Batala on 26 July, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH, AMRITSAR
BEFORE SH. VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND
SH. N.K.CHOUDHRY, JUDICIAL MEMBER
ITA No.604(Asr)/2015
Assessment Year:2007-08
Asst. Commissioner of Vs. Sh. Jagdish Sawhney
Income Tax, Circle-II, 83, Urban Estate, Batala
Amritsar
[PAN:ABPPS 9818N]
(Appellant) (Respondent)
Appellant by: Sh. Dheeraj Garg (Ld. DR)
Respondent by: Sh. Ashwani Kalia (Ld. CA)
Date of hearing: 24.07.2019
Date of pronouncement: 26.07.2019
ORDER
PER N.K.CHOUDHRY, JM:
This is an appeal filed by the Revenue Department against the order dated 18/08/2015 impugned herein passed by the Ld. CIT(A)-1, Amritsar whereby the Ld. CIT(A) deleted the penalty of Rs.79,33,195/- imposed by the Assessing Officer vide its order dated 29/03/2014.
2. The brief facts of the case are that in the instant case the assessee was also one of the member of the Punjabi Co- operative House Building Society Ltd., Mohali and owns 1000 sq. yards of land in the society having sold the same through tripartite joint development agreement with M/s. Hash Builders (P) Ltd., Chandigarh and M/s Tata Housing Development 2 ITA No.604 /Asr/2015 (A.Y.2007-08) ACIT vs. Jagdish Sawhney Company Ltd., Mumbai on 25.02.2007 for a total consideration of Rs.1,65,00,000/- as well as two flats of 2250 sq. feet each. The Assessing Officer held that by result of transfer of assessee's capital assets, the total amount of Rs.3,65,50,000/- (Rs.1,65,00,000/- + Rs.2,02,50,000/-) the value of two flats as accrued to the assessee during the Asst. Year 2007-08 for the purposes of Sec.45 r.w.sec.48 of the Income Tax Act, 1961 (herein after called as the 'Act') and therefore, the same is taxable in hands of the assessee under the head capital gain. Consequently the A.O in the penalty proceedings, vide its order dated 29/03/2014 imposed the penalty of Rs.79,33,195/- as 100% of the tax sought to be evaded. The said addition travelled up to High Court and the Hon'ble High Court in the case of C.S. Atwal vs. CIT, Ludhiana in ITA No.200 of 2013 (O&M) dated 22/07/2015 held that tax is liable to be paid only on the amount which is actually received in the year under consideration. Consequently, the Assessing Officer vide its order dated 22/09/2015 while giving appeal effect to the decision of the Jurisdictional High Court, computed the long term capital gain at Rs.51,47,386/- only.
3. On appeal before the Ld. CIT(A) the said amount of Rs.51,47,386/- was reduced to Rs.24,00,000/- only. Therefore, it was submitted by the Mr. Ashwani Kalia, Ld. CA that ultimately the addition of Rs.24 lacs has been sustained and if the penalty is to be levied on 24 lacs, then it will not be more than 8 lacs only. The Revenue Department fairly accepted the facts and circumstances of the case as demonstrated by Mr. Kalia as also appears from the records. Considering the facts that the Ld. 3 ITA No.604 /Asr/2015 (A.Y.2007-08) ACIT vs. Jagdish Sawhney CIT(A) vide its order dated 31/10/2017 has already reduced the addition to Rs.24 lacs only and penalty if any to be leviable then it can be around 8 lacs only which would be under threshold limit of Rs.20 lacs as prescribed by the CBDT Circular No.03 of 2018, dated 11.07.2018., hence, the instant appeal is liable to be dismissed and consequently stands dismissed.
4. In the result, the appeal filed by the Revenue Department stands dismissed.
Order pronounced in the open Court on 26.07.2019.
Sd/- Sd/-
(VIKRAM SINGH YADAV) (N.K.CHOUDHRY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 26.07.2019
/PK/ Ps.
Copy of the order forwarded to:
(1) Sh. Jagdish Sawhney, 83, Urban Estate, Batala
(2) The Asst. CIT, Circle-II, Amritsar
(3) The CIT(A)-1, Amritsar
(4) The CIT concerned
(5) The SR DR, I.T.A.T., Amritsar
True copy
By order