9911796707
TMI Blog2023 (1) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... own in hands of different entity, namely, other than assessee. Now coming to the instant facts, we observe that the income which was sought to be taxed in the hands of the assessee has already been offered to tax as income in the hands of Shri Nilesh Shah for the impugned assessment year and the assessment proceedings have also been completed by the AO in respect of such income. Primary reason for levy of penalty is that the firm M/s Chandan Carrier is effectively held by the assessee, however, it is also a fact that the said income which is sought to be taxed by the AO in the hands of the assessee has already been offered to income by Shri Nilesh Shah (proprietor M/s Chandan Carrier). Therefore, respectfully following the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 133A of the Act, it was noticed that the assessee is also carrying out transport business in the name of M/s Chandan Carrier. On enquiry, it was observed that M/s Chandan Carrier, though was owned by Shri Nilesh Shah, however, the AO observed that M/s Chandan Carrier did not own any trucks for transportation business. Moreover, the business premises of M/s Chandan Carrier were owned by the father of the assessee and for taking the premises on rent, M/s Chandan Carrier did not pay any rent. Enquiry from HDFC bank further revealed that the assessee is the authorised signatory, power of attorney holder and mandate holder in the case of M/s Chandan Carrier. The business activities of M/s Chandan Carrier was limited to movement of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out in this case. During the assessment proceedings, the AO noticed that the assessee was not only authorized signatory but also mandate holder of the business M/s. Chandan Carrierl. He, therefore, that M/s. Chandan Carriers was appellant s benami concern. In the first appeal the C1T(A) concurred with AO's action holding that Nilesh Shah, his realtive was mask in Chandan Carrier business and behind the mask was the appellant Shri Amit Kumar H Shah. 4.1.1 In second appeal, the Hon'ble ITAT did not give any relief to the appellant with a direction that the ITR of the appellant be verified and if income from Chandan Carrier is shown then, no addition is to be made. However, in consequential order u/s 143(3) rws 254 dated 24.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid income has already been accounted for in the return of income for Shri Nilesh Shah (as proprietor of M/s Chandan Carrier) and hence there is no cause for imposing penalty u/s 271(1)(c) of the Act in the hands of the assessee in respect of the aforesaid income. The counsel for the assessee further argued that in the instant facts penalty has been levied only on the basis that proprietorship firm M/s Chandan Carrier is effectively held by the assessee. However, the counsel for the assessee submitted that the Revenue has erred in ignoring the fact that the aforesaid income has already been subject to tax in the hands of Shri Nilesh Shah as proprietor of M/s Chandan Carrier. The counsel for the assessee placed reliance on the case of Pate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable at all, but such fact has to be treated as a relevant factor for arriving at a decision . 6.1 Now coming to the instant facts, we observe that the income which was sought to be taxed in the hands of the assessee has already been offered to tax as income in the hands of Shri Nilesh Shah for the impugned assessment year and the assessment proceedings have also been completed by the AO in respect of such income. Further, the primary reason for levy of penalty is that the firm M/s Chandan Carrier is effectively held by the assessee, however, it is also a fact that the said income which is sought to be taxed by the AO in the hands of the assessee has already been offered to income by Shri Nilesh Shah (proprietor M/s Chandan Carri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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