DCIT, Parwanoo V. Sh. Rakesh Verma, Parwanoo

ITA 103/CHANDI/2017

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8233 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Section: 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 103/CHD/2017 ASSESSMENT YEAR : 2010-11 THE DCIT, VS. SH. RAKESH VERMA, CIRCLE, PARWANOO, PARWANOO. H.P. PAN NO. AADPV5591N (APPELLANT) (RESPONDENT) APPELLANT BY : SH. S.K. MITTAL RESPONDENT BY : SH. MANOJ KUMAR DATE OF HEARING : 02.03.2017 DATE OF PRONOUNCEMENT : 08.03.2017 ORDER THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAI NST THE ORDER OF LD. CIT(A), SHIMLA DATED 3.10.2016 FOR ASSESSMENT YEAR 2010-11 CHALLENGING THE CANCELLATION OF PENALTY U/S 271(1)(C) OF THE IN COME-TAX ACT, 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CA LMED 100% DEDUCTION U/S 80IC OF THE I.T. ACT. THE ASSESSING OFFICER, HO WEVER, NOTED THAT ASSESSEE HAD ALREADY CLAIMED DEDUCTION U/S 80IC TO THE EXTENT OF 100% OF THE ELIGIBLE PROFITS FOR FIRST FIVE YEARS PERIOD ST ARTING FROM ASSESSMENT YEAR 2005-06 TO 2009-10. THE ASSESSMENT YEAR UNDER APPEA L BEING THE SIXTH YEAR OF PRODUCTION, THE ASSESSING OFFICER RESTRICTED THE DEDUCTION U/S 80IC TO 2 25% AGAINST 100% CLAIMED BY THE ASSESSEE. THE ASSES SING OFFICER INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE I.T. ACT O N SUCH ADDITION AND LEVIED PENALTY. 3. THE LD. CIT(A) FOUND THAT ON IDENTICAL ISSUE, IT AT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS VS. ITO IN ITA NO. 326/CHD/2015 FOR ASSESSMENT YEAR 2009-10 CANCELLED THE PENALTY U/S 271(1)(C) OF THE I.T. ACT. THE ORDER OF THE TRIBUNA L IS REPRODUCED IN THE IMPUGNED ORDER. THE LD. CIT(A) FOLLOWING THE ORDE R OF THE TRIBUNAL IN THE CASE OF M/S HYCRON ELECTRONICS VS. ITO (SUPRA) CANCELLED THE LEVY OF PENALTY AND ALLOWED THE APPEAL OF THE ASSESSEE. 4. LD. REPRESENTATIVES OF BOTH THE PARTIES SUBMITTE D THAT ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA) IN WHICH THE TRIBUNAL CANCELLED THE PENALTY ON IDENTICAL ISSUE. THEREFORE, NO INFIR MITY HAVE BEEN POINTED OUT BY LD. DR IN THE ORDER OF THE LD. CIT(A) IN FOL LOWING THE ORDER OF THE TRIBUNAL FOR CANCELLING THE PENALTY. THE DEPARTMEN TAL APPEAL FAILS AND IS ACCORDINGLY DISMISSED. 5. IT MAY BE NOTED THAT HERE THAT LD. CIT(A) IN THE IMPUGNED ORDER HAS CONFIRMED THE PENALTY ON THE ADDITION OF RS. 99,708 /- ON ACCOUNT OF INTEREST INCOME ON WHICH ASSESSEE CLAIMED DEDUCTION U/S 80IC. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE HA S NOT FILED ANY APPEAL AGAINST SUCH PENALTY. 3 6. IN THIS VIEW OF THE MATTER, THE DEPARTMENTAL APP EAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED : 08 TH MARCH, 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR