Income Tax Appellate Tribunal - Panji
The Deputy Commissioner Of Income Tax, ... vs Volga Dresses, Gulbarga., Gulbarga on 27 March, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
PANAJI BENCH, PANAJI
BEFORE SHRI P.K.BANSAL, HON'BLE ACCOUNTANT MEMBER
SHRI GEORGE MATHAN, HON'BLE JUDICIAL MEMBER
ITA No. 201 & 202 /PAN/2016
(Asst. Year: 2013 - 14, 2014 - 15)
Deputy Commissioner of Income Tax v. M/s Volga Dresses
Central Circle Plot No.19, Namoshi Building,
Shraddha Building Super Market,
Saraf Colony Main Road
Khanapur Road Gulbarga
Tilakwadi Karnataka State
Belagavi
PAN No. AABFV 2733 Q
(Appellant) (Respondent)
Assessee by : Shri Prathibha R. - Advocate
Department By : Shri Raviraj Y.V. - Ld.DR
Date of hearing : 27/03/2017.
Date of pronouncement : 27/03/2017.
ORDER
PER GEORGE MATHAN, JUDICIAL MEMBER
1. These are two appeals filed by the revenue against the order of the learned CIT (A) - 2, Panaji in appeal no ITA.No.205/CIT(A)- 2/PNJ/2015 - 16 dated 10.08.2016 for the Assessment Year 2013 - 14 and ITA.No.206/CIT(A)-2/PNJ/2015 - 16 dated 10.08.2016 for the Assessment Year 2014 - 15.
2. Shri Raviraj Y.V. represented on behalf of the revenue and Shri Prathiba R, Advocate represented on behalf of the assessee.
3. At the time of hearing the learned Departmental Representative submitted that there was a search carried on 18.07.2013 in the case of M/s. Hyderabad Karnatak Education Society (hereinafter in short 2 ITA Nos. 201 & 202 /PNJ/2016 M/s Volga Dresses "HKES") and the residence of Shri Shashil G. Namoshi who was one of the trustee of M/s HKES as also partner in the assessee firm. It was submission that in the course of the search at the residence of Shri Shashil G. Namoshi cash to an extent of ₹. 2,86,50,000/- was found which was explained by him as belonging to the assessee firm.
4. Survey was also conducted on the premises of the assessee firm. Notice under Section 153C came to be issued on the assessee firm and the assessee had filed his return declaring amount in its return. The assessments came to be completed accepting the amount declared in the return. It was submission that penalty under section 271AAB came to be passed imposing penality on the assessee firm. It was submission that on appeal the learned CIT(A) deleted the levy of penalty holding that the search was not at the premises of the assessee firm but on the residential premises of the partner of the assessee firm and penalty under Section 271AAB could not be levied unless there is a search under section 132 of the Act on the assessee firm. It was submission that the order of the learned CIT(A) was liable to be reversed.
5. In reply learned Authorized Representative of the assessee vehemently supported the order of the learned CIT(A).
6. We have considered the rival submissions. A perusal of the provisions of section 271AAB shows that the opening words are "penalty where search has been initiated" a perusal of the provisions under Section 271AAB also talks of the assessee declaring any undisclosed income in the course of the search in the statement under section 132(4). Admittedly in the present case, that is in the case of the assessee firm in appeal there has been no search. Search admittedly is on the residence of one of the partner of the assessee firm. Further a perusal of the order of the learned CIT(A) also clearly shows that the learned CIT(A) has cancelled the penalty on the ground that there was 3 ITA Nos. 201 & 202 /PNJ/2016 M/s Volga Dresses no search in the case of the assessee firm. The revenue has not been able to point out as to how this finding of the learned CIT(A) is erroneous. This being so the finding of the learned CIT(A) on this issue stands confirmed.
7. In the result the appeals filed by the revenue stands dismissed.
Order Pronounced in the Court at the close of the hearing on Monday, the 27th day of March, 2017 at Goa.
Sd/- Sd/-
(P.K.BANSAL) (GEORGE MATHAN)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated :27 t h March, 2017.
vssgb /-
Copy to:
1. The Assessee.
2. The Revenue.
3. The CIT
4. The CIT(A),
5. The D.R.
6. Guard file.
By order
Assistant Registrar
I.T.A.T., Panaji