Sabri Chemicals Pvt. Ltd., Baroda V. The ACIT, Circle-2(1)(1), Baroda

ITA 1018/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6123 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 25-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUDIT NAGPAL DATES OF HEARING
• Assessee Lawyers: M J SHAH
• Keywords: Bad and doubtful debts
• Section: 143(3)

Judgement Text

ITA NO. 1018/AHD/2016 SABRI CHEMICALS PVT LTD VS. ACIT ASSESSMENT YEAR: 2010-11 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 1018/AHD/2016 ASSESSMENT YEAR: 2010-11 SABRI CHEMICALS PVT LTD ............... ......APPELLANT A/2/236, GIDC, NANDESARI, BARODA 391 340 [PAN : AACCS 9406 K] VS ASSTT. COMMISSIONER OF INCOME-TAX ...... .......RESPONDENT CIRCLE 2(1)(1), BARODA APPEARANCES BY MJ SHAH FOR THE APPELLANT MUDIT NAGPAL FOR THE RESPONDENT DATES OF HEARING OF THE APPEAL : FEBRUARY 09, 2018 DATE OF PRONOUNCING THIS ORDER : FEBRUARY 12, 2018 O R D E R PER PRAMOD KUMAR, AM: 1. THE SHORT ISSUE THAT WE ARE REQUIRED TO ADJUDICA TE IN THIS APPEAL IS WHETHER OR NOT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, LEARNED CIT(A) WAS JUSTIFIED IN UPHOLDING THE IMPUGNED PENALTY OF RS.12,52,150/- IM POSED ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. THE ASSESSMENT YEAR INVOLVED IS 2010-11 AND THE IMPUGNED CIT(A)S ORDER WAS PASSED ON 17.02.2016. 2. BRIEFLY STATED, THE RELEVANT MATERIAL FACTS ARE LIKE THIS. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSMENT U/S 143(3) OF THE ACT WAS COMPLETED VIDE ORDER DATED 31.12.2012, AT AN ASSESSED INCOME OF RS.68,96,609/- , MAKING ADDITIONS / DISALLOWANCES ON VARIOUS ISSUES, WHICH INCLUDES QU ANTUM DISALLOWANCE OF BAD DEBTS OF RS.40,68,421/-. ON FURTHER APPEAL, THE LD. CIT( A) HAS UPHELD THE ACTION OF THE ASSESSING OFFICER VIDE HIS ORDER DATED 21.10.2013 A ND CONFIRMED THE ABOVE SAID DISALLOWANCE MADE BY THE ASSESSING OFFICER. 4. SUBSEQUENT TO THE LD. CIT(A)S AFORESAID ORDER C ONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER, PENALTY U/S 271(1)(C ) OF THE ACT WAS COMPLETED VIDE ORDER DATED 18.02.2015, IMPOSING A PENALTY OF RS.12 ,52,150/- BEING THE 100% OF THE TAX SOUGHT TO BE EVADED. ON FURTHER APPEAL, THE IM PUGNED PENALTY ORDER WAS UPHELD ITA NO. 1018/AHD/2016 SABRI CHEMICALS PVT LTD VS. ACIT ASSESSMENT YEAR: 2010-11 PAGE 2 OF 2 BY THE CIT(A) VIDE IMPUGNED ORDER DATED 17.02.2015. THE ASSESSEE APPELLANT, BEING AGGRIEVED, IS IN APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING BEFORE US, IT WAS POINTED OUT BY THE LD. COUNSEL THAT, IN THE QUANTUM APPEAL, THE TRIBUNAL HAS DELETED THE QU ANTUM ADDITION VIDE ORDER DATED 12.04.2017 IN ITA NO. 24/AHD/2014 - COPY OF THE ORD ER IS PLACED ON RECORD. WHEN THE TRIBUNAL HAS ALREADY DELETED THE QUANTUM ADDITI ON IN QUESTION, THE PENALTY MADE IN RESPECT OF SUCH ADDITION CANNOT SURVIVE. WE, TH EREFORE, DELETE THE IMPUGNED PENALTY OF RS.12,52,150/- AND ALLOW THE APPEAL OF T HE ASSESSEE. 6. IN THE RESULT, APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 12 TH DAY OF FEBRUARY, 2018. SD/- SD/- S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 12 TH DAY OF FEBRUARY, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION:.....COVERED MATTER....12.02.2 018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 12.02.2018........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 12.02.2018. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: ... 12.02.2018..... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 12.02.2018.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 8. DATE OF DESPATCH OF THE ORDER