Chakravarthy Silks, Karur V. ITO, Karur

CO 11/CHNY/2010

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 5265 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 6 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-11-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-11-2010
• Assessment Year: 1999-2000
• Appeal Filed On: 22-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: N QUADIR HOSEYN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI GEORGE MATHAN JUDICIAL MEMBER .. ITA NO.1865/MDS./09 A.Y : 1999 - 2000 INCOME TAX OFFICER, WARD 1(1), KARUR. VS. M/S.CHAKRAVARTHY SILKS, C/O.V.ANNADURAI, C-3, KUMARASAMY APPARTMENTS, RAMANUJAM NAGAR, KARUR. ( PAN NO.AABFC 4205 Q) (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.11/MDS/2010 (ITA NO.1865/MDS./09) A.Y : 1999 - 2000 M/S.CHAKRAVARTHY SILKS, C/O.V.ANNADURAI, C-3, KUMARASAMY APPARTMENTS, RAMANUJAM NAGAR, KARUR. ( PAN NO.AABFC 4205 Q) VS. INCOME TAX OFFICER, WARD 1(1), KARUR. (CROSS OBJECTOR) (APPELLANT IN APPEAL) PAGE 2 OF 4 ITA. 1865/MDS/09 CO NO.11/MDS/10 ASSESSEE BY : SHRI N.QUADIR HOSEYN ADVOCATE DEPARTMENT BY : SHRI K E B RENGARAJAN JR. STANDING COUNSEL O R D E R PER DR.O.K.NARAYANAN, V.P. : THIS APPEAL IS FILED BY THE REVENUE. THE CROSS OBJECTION IS FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEA R IS 1999-2000. 2. THIS APPEAL AND THE CROSS OBJECTION ARE DIRECT ED AGAINST THE ORDER OF CIT(A) AT TIRUCHIRAPALLI DATED 02.09.09 AND ARISE OUT OF THE PENALTY ORDER PASSED U/S.271(1)(C) OF THE INCOME TAX ACT, 1961. 3. THE ASSESSING OFFICER HAD LEVIED MINIMUM PENALT Y OF ` .2,42,714/- U/S.271(1)(C) OF THE INCOME TAX ACT. T HE PENALTY WAS LEVIED IN THE LIGHT OF THE ADDITIONS MADE AGAINST U NEXPLAINED CASH CREDIT OF ` .6,46,875/- AND INTEREST AMOUNT OF ` .46,595/-. ITAT D BENCH, CHENNAI IN ITA NO.1202/MDS/06 HAD MODIFIED T HE ADDITION TO ` .52,500/- THROUGH ITS ORDER DATED 28.11.08. CORRES PONDINGLY, CIT(A) MODIFIED THE PENALTY ORDER ALSO IN PROPORTION TO TH E QUANTUM OF PAGE 3 OF 4 ITA. 1865/MDS/09 CO NO.11/MDS/10 ADDITION REDUCED BY THE ITAT. HE DIRECTED TO MODIF Y THE PENALTY TO ` .52,500/-. 4. THE REVENUE IS AGGRIEVED AND THEREFORE, THIS AP PEAL BEFORE US. 5. THE CROSS OBJECTIONER PLEADS FOR THE DELETION O F ` .52,500/- AS WELL. 6. WE HEARD SHRI K.E.B.RENGARAJN, LD. JUNIOR STAND ING COUNSEL APPEARING FOR THE REVENUE AND SHRI N.QUADIR HOSEYN LEARNED COUNSEL APPEARING FOR THE RESPONDENT ASSESSEE 7. WE FIND THAT THE MODIFICATION OF QUANTUM OF THE PENALTY WAS NECESSITATED IN THE HANDS OF THE CIT(A) IN THE LIGH T OF THE CORRESPONDING REDUCTION MADE IN THE QUANTUM OF ADDI TION BY THE TRIBUNAL. THE ORDER OF THE CIT(A) ON THIS POINT IS JUST AND PROPER. WE FIND THAT THE MINIMUM PENALTY DETERMINED BY THE CIT (A) IS IN ORDER. PAGE 4 OF 4 ITA. 1865/MDS/09 CO NO.11/MDS/10 8. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL AS WELL AS THE CROSS-OBJECTION ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY THE 29 TH OF NOVEMBER, 2010 AT CHENNAI. SD/- SD/- ( GEORGE MATHAN ) ( DR.O.K.NARAYANAN ) JUDICIAL MEMBER VICE PRESIDENT CHENNAI, DATED THE 29 TH NOVEMBER, 2010. KSS COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE