DCIT, Pune V. M/s. Anusaya Auto Press Part Pvt. Ltd., Pune

ITA 1021/PUN/2010

• Counselvise Citation: 102124514 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-11-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K AMBASTHA
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 1021/PN/2010 : A.Y. 2004-05 DY. CIT CIR. 8, PUNE APPELLANT VS. M/S. ANUSAYA AUTO PRESS PART PVT. LTD., GAT NO. 388, MAHALUNGE, TAL. KHED, PUNE-410 501. RESPONDENT APPELLANT BY: SHRI S.K. AMBASTHA RESPONDENT BY: SHRI KISHORE PHADKE DATE OF HEARING: 17-11-2011 DATE OF PRONOUNCEMENT : 29-11-2011 ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-V PUNE DATED 5-3-2010 FOR A.Y. 2004 -05 ON THE POINT OF DELETION OF PENALTY OF RS. 7,07,000/- LEVIED U/S 271(1)(C) BY THE ASSESSING OFFICER. 2. THE ASSESSEE RUNS AN ENGINEERING WORKSHOP. THE ASSESSEE FILED A RETURN OF INCOME ON 1-11-2004 DECL ARING A TOTAL INCOME OF RS. 1,55,67,045/-WHICH WAS ASSESSED BY THE ASSESSING OFFICER DETERMINING THE TOTAL INCOME AT RS. 1,79,66,366/- BY MAKING CERTAIN ADDITIONS/DISALLOWA NCES. SUBSEQUENTLY, THE ASSESSING OFFICER ALSO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT AGAINST WHICH, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CI T(A). 2 ITA NO. 1021/PN/2010 ANUSAYA AUTO PRESS PORT PVT.LTD. A.Y. 2004-05 3. THE CIT(A) AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS MADE ON BEHALF OF THE ASSESSEE DELETED THE PENALTY LEVIED BY THE ASSESSING OFFICER BY OBSERVIN G AS UNDER: HAVING PERUSED CAREFULLY THE CONTENTS OF THE ASSESSMENT ORDER PASSED IN THIS CASE, I FIND THAT A LL THE ADDITIONS MADE WHILE COMPLETING THE ASSESSMENT INVOLVED EITHER INTERPRETATION OF THE LAW, OR EXERC ISE OF OPINION, ESTIMATION OR MAKING OF AN ADHOC DISALLOWANCE. THERE IS NO FINDING WHATSOEVER, ANYWHERE IN THE ASSESSMENT ORDER, THAT THE APPELLAN TS HAD FURNISHED FACTUAL DETAILS OR INFORMATION ABOUT INCOME WHICH WAS NOT IN CONFORMITY WITH FACTS OR TRUTH. IN FACT ALL THE INFORMATION UTILIZED BY THE ASSESSING OFFICER FOR MAKING THE DISALLOWANCE AT ASSESSMENT STAGE WAS INFORMATION FURNISHED IN THE RETURN OF INCOME, STATEMENT OF ACCOUNTS, AUDIT REPO RT ETC., WHICH WERE FURNISHED WITH THE RETURN OF INCOM E OR FURTHER FACTUAL DETAILS PRODUCED BY THE APPELLAN T DURING ASSESSMENT PROCEEDINGS. ACCORDINGLY, IN THE LIGHT OF THE DECISIONS OF THE PUNE ITAT IN KANBAY SOFTWARE PVT. LTD., AND THE MOST RECENT JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF CITED ABOVE, I AM OF THE VIEW THAT NO GROUNDS ARE MADE OUT FOR LEVY O F CONCEALMENT PENALTY IN THIS CASE. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THAT ALL THE ADDIT IONS MADE WHILE COMPLETING THE ASSESSMENT INVOLVED EITHER INTERPRETATION OF THE LAW, OR EXERCISE OF OPINION, ESTIMATION OR MAKING OF AN ADHOC DISALLOWANCE. FURTHER, THE P ENALTY IS NOT AUTOMATIC UPON AN ADDITION BEING MADE TO INC OME DURING THE ASSESSMENT. MERELY BECAUSE THE ASSESSEE HAD CLAIMED THE EXPENDITURE, WHICH CLAIM WAS NOT ACCEPT ED OR WAS NOT ACCEPTABLE TO THE REVENUE, THAT BY ITSELF W OULD NOT, ATTRACT THE PENALTY U/S 271(1)(C) OF THE ACT. UNDER THE CIRCUMSTANCES, THE CIT(A) WAS JUSTIFIED IN DELE TING THE PENALTY LEVIED BY THE ASSESSING OFFICER. 3 ITA NO. 1021/PN/2010 ANUSAYA AUTO PRESS PORT PVT.LTD. A.Y. 2004-05 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN ON 29 TH NOVEMBER 2011. SD/- SD/- (G.S. PANNU) ACCOUNTANT MEMBER SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 29 TH NOVEMBER 2011. ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT V PUNE 4. CIT(A)-V PUNE 5. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES, PUNE.