The Income Tax Appellate Tribunal Ahmedabad ruled in favor of the assessee and rejected the penalty in the Tax Assessment Case.
Facts
In the case of the assessee, assessment was framed under section 143(3) of the Act, the AO made two additions viz. (i) short term capital gain of Rs.2,60,17,820/-, on the ground that the assessee has not brought on record any evidence to show that the shares of Amrapali Fincap Ltd were held for more than 36 months, which would allow the assessee the benefit of indexation on the cost of shares for computing long term capital gain, and thus treated as a fraudulent claim, and (ii) unexplained cash payment/receipt totaling to Rs.16,42,38,460/- (i.e. cash payment of 11,32,00,650/- to one Venus group, plus unexplained cash receipt of Rs.5,10,37,810/-) under section 69A/C of the Act on the basis of some incriminating material, viz. vouchers and receipts seized during the search at the premises of Venus group, which the AO presumed to be beneficial involvement of the assessee in the transaction.
Submissions
Counsel for the assessee submitted that the quantum of appeals of the assessee and the Revenue was decided by the Tribunal in favour of the assessee and against the Revenue vide order (assessee’s appeal) and (Revenue’s appeal) vide which, the Tribunal deleted the addition made on account of short term capital gain, and confirmed the action of the CIT(A) in deleting the additions made under section 69A/C of the Act.
Decision
The division bench of Annapurna Gupta, Accountant Member and T.R.Senthil Kumar, Judicial Member found that the Tribunal vide order deleted the addition on which impugned penalty was levied u/s 271(1)(c) of the Act, therefore, there remains no basis for levy of penalty in the case before it. Consequently, there being no legal basis for the imposition of the penalty in the case, renders the impugned order non-est in the eyes of law.
Case title: Yashwant Amratlal Thakkar v/s DCIT
Citation: ITA No.130/Ahd/2022
