Income Tax Appellate Tribunal - Ahmedabad
Bholabhai R. Patel,Huf, Baroda vs Acit.,Circle-5,, Baroda on 5 January, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH
(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
& SHRI MAHAVIR PRASAD, JUDICIAL MEMBER)
ITA. No: 1390/AHD/2013
(Assessment Year: 2007-08)
Bholabhai R. Patel HUF 1- V/S Asstt. Comm. Of Income
2, Darshan Park, VIP Tax, Circle-5, Baroda
Road, Karelibaug, Baroda
(Appellant) (Respondent)
PAN: AACHB0251L
Appellant by : Ms. Arti N. Shah, AR
Respondent by : Shri Vilas V. Shinde, Sr. D.R.
(आदे श)/ORDER
Date of hearing : 02-01-2017
Date of Pronouncement : 05 -01-2017
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
1. This appeal by the Assessee is preferred against the order of the Ld. CIT(A)- V, Baroda dated 18.03.2013 pertaining to A.Y. 2007-08.
2 ITA No . 1390/Ahd/2013
. A.Y. 2007-08
2. The sole grievance of the assessee relates to the levy of penalty of Rs. 2,35,620/- u/s. 271(1)(c) of the Act.
3. The roots for the levy of penalty lie in the assessment order dated 24.12.2009 made u/s. 143(3) of the Act.
4. During the course of the scrutiny assessment proceedings, the A.O. noticed that there was a cash deposit of Rs. 7,00,000/- in the bank account of the assessee with Dena Bank. The assessee claimed to have received that amount from one M/s. Raj Aviation Pvt. Ltd. though the entry was not routed though the cash book but directly entered into the ledger account.
5. This claim of the assessee did not find any favour with the Assessing Officer who made the addition of Rs. 7,00,000/- and initiated penalty proceedings. The quantum addition of Rs. 7,00,000/- was confirmed by the ld. CIT(A) and the assessee did not prefer any further appeal.
6. The A.O. levied the penalty u/s. 271(1)(c) of the Act for concealment of particulars of the income. The A.O., while levying the penalty, observed that the assessee decided to furnish any detail to substantiate its claim that the said amount has been received from M/s. Raj Aviation Pvt. Ltd and has credited the said amount directly.
7. Assessee carried the matter before the ld. CIT(A) but without any success.
3 ITA No . 1390/Ahd/2013
. A.Y. 2007-08
8. Before us, the ld. counsel for the assessee reiterated that though the assessee has accepted the quantum addition but there is no case of concealment of particulars of income because the assessee has explained the source of deposit of Rs. 7,00,000/- in the bank account. It is the say of the ld. counsel that due to inadvertence, the entries were made directly in the ledger account without routing them through the cash book. The ld. counsel further stated that such inadvertence, no penalty should be levied u/s. 271(1)(c) of the Act. Per contra, the ld. D.R. stated that the assessee has not furnished any detail in support of his claim.
9. We have given a thoughtful consideration to the orders of the authorities below. We have also gone through the copy of the ledger account of M/s. Raj Aviation Pvt. Ltd. We find that in the said ledger account, there was an opening debit balance of Rs. 22 lacs as on 01.04.2002 and as on 01/05/2006 the opening balance was at Rs. 7,00,000/-. It is the claim of the assessee that this Rs. 7,00,000/- was received by him and deposited in the bank account.
10.It appears that this copy of ledger account has not been appreciated by the A.O. before levying the penalty. Therefore, in the interest of justice and fair play, we restore this issue to the files of the A.O. The A.O. is directed to consider the copy of ledger account of M/s. Raj Aviation Pvt. Ltd. and decide the issue afresh after giving a reasonable opportunity of being heard to the assessee.
4 ITA No . 1390/Ahd/2013
. A.Y. 2007-08
11.In the result, the appeal filed by the Assessee is treated as allowed for statistical purposes.
Order pronounced in Open Court on 05 - 01- 2017.
Sd/- Sd/-
(MAHAVIR PRASAD) (N. K. BILLAIYA)
JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER
Ahmedabad: Dated 05/01/2017
Rajesh
Copy of the Order forwarded to:-
1. The Appellant.
2. The Respondent.
3. The CIT (Appeals) -
4. The CIT concerned.
5. The DR., ITAT, Ahmedabad.
6. Guard File.
By ORDER
Deputy/Asstt.Registrar
ITAT,Ahmedabad