ITO v. Sukhamrit Singh - Taxpublishers.in

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The Tax Publishers2013 TaxPub(DT) 0267 (Asr-Trib) : (2012) 020 ITR (Trib) 0636 INCOME TAX ACT, 1961 --Penalty proceeding under section 271(1)(c)--Concealment of income Assessing officer made addition on estimation basis whether penalty levied--Assessee-individual did not respond to the various notices issued under section 143(2). Afterwards assessing officer passed order under section 144 to the best of his judgment and imposed penalty for furnishing inaccurate particulars. *Held:* Was not justified as section 271(1)(c) cannot be invoked where the income of assessee was assessed on estimate basis and also assessing officer failed to brought any material on record to show any mala fide intention of assessee to evade tax in the return filed by him. Income Tax Act, 1961 Section 271(10(c) IN THE ITAT, Amritsar Bench H. S. Sidhu, J.M. & B. P. Jain, A.M. ITO v. Sukhamrit Singh I.T.A. No. 451(Asr)/2011 A.Y. 2005-06 5 September, 2012 Appellant by : Amrik Chand Respondent by : Satish Kumar Gupta ORDER The Revenue has filed the present appeal against the impugned order of the Commissioner (Appeals), Amritsar, dated 31-5-2011 for the assessment year 2005-06. 2. The facts relating to the issue in dispute are that the assessee is an individual and filed his-return of income on 31-10-2005 declaring income at Rs. 1,57,120 and agricultural income at Rs. 80,000. The assessing officer processed the return of income under section 143(1) of the Income Tax Act, 1961 (in short, 'the Act'), vide intimation dated 7-2-2006 and subsequently the case of the assessee was selected for scrutiny and the assessing officer issued notice under section 143(2) of the Act on 27-10-2006, which was served upon the assessee on the same date. In response to the same, the authorized representative of the assessee appeared and sought adjournment and the case was adjourned for 24-11-2006. None appeared on 24-11-2006 and the assessing officer issued fresh statutory notice under sections. 142 and 143(2) dated 19-12-2006. Again nobody attended on the appointed date; i.e., 29-12-2006. Similarly, so many times, the assessing officer adjourned the matter. But none appeared on behalf of the assessee and lastly the assessing officer, vide notice dated 8-6-2007 informed the assessee that in case of non-compliance, the case would be decided ex parte. Notice was duly served upon the assessee on 12-6-2007 along with statutory notice under section 142 and the case was fixed for 28-6-2007 and the assessing officer framed the assessment under section 144 of the Act, to the best of his judgment, vide assessment order dated 2-7-2007 by making net estimated income amounting to Rs. 25,57,195 mentioned at pages 5 and 6 of the assessment order. Aggrieved by the assessment order dated 2-7-2007, made under section 144 of the Act, the assessee filed an appeal before the learned Commissioner (Appeals), who vide order dated 19-3-2008 has written that during the course of appellate proceedings on 17-3-2008, the appellant filed a letter dated 17-3-2008 requesting for withdrawal of the appeal filed by the appellant. On these facts, the appeal of the assessee is dismissed as withdrawn. As per record, the assessee has also filed a petition under section 264 of the Act dated 14-5-2008 before the learned Commissioner of Income Tax-1, Amritsar, requesting for setting aside the order dated 2-7-2007 passed by the assessing officer under section 144 of the Act with the direction to the assessing officer to give reasonable opportunity of being heard to the assessee and alternatively various additions and disallowances so made under different heads by the assessing officer may be directed to delete the order and the assessee may be granted any other legitimate relief for which the assessee is entitled. The learned Commissioner of Income Tax-1 Amritsar, vide his order dated 21-10-2008 directed the assessing officer to modify the assessment order to give relief of Rs. 10,000 on account of telephone expenses out of Rs. 40,420 and finally disposed of the petition filed by the assessee under section 264 of the Act. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0267 (Asr-Trib) : (2012) 020 ITR (Trib) 0636

INCOME TAX ACT, 1961

--Penalty proceeding under section 271(1)(c)--Concealment of income Assessing officer made addition on estimation basis whether penalty levied--Assessee-individual did not respond to the various notices issued under section 143(2). Afterwards assessing officer passed order under section 144 to the best of his judgment and imposed penalty for furnishing inaccurate particulars. Held: Was not justified as section 271(1)(c) cannot be invoked where the income of assessee was assessed on estimate basis and also assessing officer failed to brought any material on record to show any mala fide intention of assessee to evade tax in the return filed by him.

Income Tax Act, 1961 Section 271(10(c)

IN THE ITAT, Amritsar Bench

H. S. Sidhu, J.M. & B. P. Jain, A.M.

ITO v. Sukhamrit Singh

I.T.A. No. 451(Asr)/2011

A.Y. 2005-06

5 September, 2012

Appellant by : Amrik Chand

Respondent by : Satish Kumar Gupta

ORDER

The Revenue has filed the present appeal against the impugned order of the Commissioner (Appeals), Amritsar, dated 31-5-2011 for the assessment year 2005-06.

2. The facts relating to the issue in dispute are that the assessee is an individual and filed his-return of income on 31-10-2005 declaring income at Rs. 1,57,120 and agricultural income at Rs. 80,000. The assessing officer processed the return of income under section 143(1) of the Income Tax Act, 1961 (in short, 'the Act'), vide intimation dated 7-2-2006 and subsequently the case of the assessee was selected for scrutiny and the assessing officer issued notice under section 143(2) of the Act on 27-10-2006, which was served upon the assessee on the same date. In response to the same, the authorized representative of the assessee appeared and sought adjournment and the case was adjourned for 24-11-2006. None appeared on 24-11-2006 and the assessing officer issued fresh statutory notice under sections. 142 and 143(2) dated 19-12-2006. Again nobody attended on the appointed date; i.e., 29-12-2006. Similarly, so many times, the assessing officer adjourned the matter. But none appeared on behalf of the assessee and lastly the assessing officer, vide notice dated 8-6-2007 informed the assessee that in case of non-compliance, the case would be decided ex parte. Notice was duly served upon the assessee on 12-6-2007 along with statutory notice under section 142 and the case was fixed for 28-6-2007 and the assessing officer framed the assessment under section 144 of the Act, to the best of his judgment, vide assessment order dated 2-7-2007 by making net estimated income amounting to Rs. 25,57,195 mentioned at pages 5 and 6 of the assessment order. Aggrieved by the assessment order dated 2-7-2007, made under section 144 of the Act, the assessee filed an appeal before the learned Commissioner (Appeals), who vide order dated 19-3-2008 has written that during the course of appellate proceedings on 17-3-2008, the appellant filed a letter dated 17-3-2008 requesting for withdrawal of the appeal filed by the appellant. On these facts, the appeal of the assessee is dismissed as withdrawn. As per record, the assessee has also filed a petition under section 264 of the Act dated 14-5-2008 before the learned Commissioner of Income Tax-1, Amritsar, requesting for setting aside the order dated 2-7-2007 passed by the assessing officer under section 144 of the Act with the direction to the assessing officer to give reasonable opportunity of being heard to the assessee and alternatively various additions and disallowances so made under different heads by the assessing officer may be directed to delete the order and the assessee may be granted any other legitimate relief for which the assessee is entitled. The learned Commissioner of Income Tax-1 Amritsar, vide his order dated 21-10-2008 directed the assessing officer to modify the assessment order to give relief of Rs. 10,000 on account of telephone expenses out of Rs. 40,420 and finally disposed of the petition filed by the assessee under section 264 of the Act.