Vikas Jayram Bhukan Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune has allowed an appeal filed by Vikas Jayram Bhukan, quashing a penalty of Rs. 13,44,580 imposed under Section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2012-13. The Tribunal’s decision was primarily based on the finding that the penalty notice issued to the assessee was defective as it failed to specify the precise charge for which the penalty was being levied.
Background of the Case
Vikas Jayram Bhukan, an individual engaged in land trading and real estate, filed his income tax return for A.Y. 2012-13 declaring a total income of Rs. 9,49,160. During assessment proceedings, the Assessing Officer (AO) noted a discrepancy: while the assessee reported sales of Rs. 86,03,600, actual receipts amounted to Rs. 1,29,58,000. This left an unexplained excess of Rs. 43,51,400.
When questioned, the assessee initially claimed the excess amount was repayable to partners, stating it wasn’t part of his income. However, when asked to produce the partnership firm’s return showing the amount as receivable, the assessee clarified that there was no formal partnership firm. Instead, it was a group of 8 to 10 individuals who jointly purchased and sold land, distributing profits based on their investment. Despite requests to justify his share of profit, no further reply was submitted by the assessee.
