Income Tax Appellate Tribunal - Jaipur
Vinay Jain, Jaipur vs Dcit, Jaipur on 25 November, 2016
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 174/JP/2016
fu/kZkj.k o"kZ@Assessment Year : 2007-08.
Shri Vinay Jain, Prop. M/s. Yash Gems,
2567, 3rd Crossing, Gheewalon Ka Rasta, Johari Bazar, Jaipur.
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Vs.
Dy. Commissioner of Income-tax
Circle-2,
Jaipur.
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vihykFkhZ@Appellant
izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mukesh Goyal (C.A)
jktLo dh vksj ls@ Revenue by : Shri Prem Prakash Meena (JCIT)
lquokbZ dh rkjh[k@ Date of Hearing : 22.11.2016.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 25/11/2016.
vkns'k@ ORDER
PER SHRI KUL BHARAT, JM.
This appeal by the assessee is filed against the order of ld. CIT (A), Aligarh /Camp-Jaipur dated 27.11.2015 pertaining to assessment year 2007-08. The assessee has raised the following grounds of appeal :-
" The learned CIT (Appeals) has grossly erred in fact and law in confirming the penalty of Rs. 29873/- imposed by the Assessing Officer under section 271(1)(c) of I.T. Act, 1961 in respect of without considering the submission of the assessee."
2. Briefly stated the facts are that the case of the assessee was picked up for scrutiny assessment and the assessment under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) was framed vide order dated 24.11.2009. While framing the assessment, the AO made estimation of income by making trading addition of Rs. 1,63,022/- and also initiated penalty proceedings under section 271(1)(c) of the Act. Subsequently, the AO imposed penalty of Rs. 29,873/- on the addition confirmed by ld. CIT (A). The assessee aggrieved by this order, preferred an appeal before ld. CIT (A), who after considering the submissions dismissed the appeal.
3. Now the assessee is in further appeal before this Tribunal.
4. The ld. Counsel for the assessee submitted that penalty proceedings and quantum proceedings are two different and distinct proceedings, merely because the addition has been confirmed would not ipso facto make the penalty leviable. The ld. Counsel submitted that under the identical facts, the Hon'ble Jurisdictional High Court in the case of CIT vs. Krishi Tyre Retreading and Rubber Industries (2013) 360 ITR 580 (Raj.) has held that no penalty is leviable since the addition was made on the basis of pure guess work. The ld. Counsel also relied upon the decision of the Coordinate Bench of the Tribunal rendered in the case of Aditya Gems vs. ACIT in ITA No. 786/JP/2013. The ld. Counsel also placed reliance on the judgment of Hon'ble Supreme Court rendered in the case of CIT vs. Reliance Petroproducts (P) Ltd. (2010) 321 ITR 158 (SC).
4.1. On the contrary, the ld. D/R supported the orders of the authorities below.
4.2. We have heard rival contentions, perused the material available on record and gone through the orders of the authorities below. We find that the Hon'ble Jurisdictional High Court in the case of CIT vs. Krishi Tyre Retreading and Rubber Industries (supra) has held that the addition had been sustained purely on estimate basis and cogent finding so as to make the addition. It was a pure guess work and on estimation no penalty under section 271(1)(c) is leviable. In the case in hand also the AO has made the addition purely on the basis of guess work. Therefore, respectfully following the judgment of Hon'ble Jurisdictional High Court, we hereby delete the penalty.
5. In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 25/11/2016.
Sd/- Sd/-
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(VIKRAM SINGH YADAV) ( KUL BHARAT )
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Jaipur
Dated:- 25/11/2016.
Das/
vkns'k dh izfrfyfi vxzsf"kr@Copy of the order forwarded to:
1. The Appellant- Shri Vinay Jain, Jaipur.
2. The Respondent- The DCIT Circle-2, Jaipur.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (ITA No. 174/JP/2016)
vkns'kkuqlkj@ By order,
lgk;d iathdkj@ Assistant. Registrar
4
ITA No. 174/JP/2016
Shri Vinay Jain, Jaipur.