The DCIT, Circle-5, Ahmedabad V. Karsanbhai Khodidas Patel, Ahmedabad

ITA 1049/AHD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5771 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-06-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 06-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K KHANDELWAL
• Section: 271(1)(c); 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD A BENCH (BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND T.K. SHARMA, JUDICIAL MEMBER) ITA.NO.1049/AHD/2010 ASSTT.YEAR : 2003-2004 DCIT, CIR.5 AHMEDABAD. VS. SHRI KARSANBHAI KHODIDAS PATEL NIRMA HOUSE, ASHRAM ROAD AHMEDABAD. PAN AGGPP 2909K (APPELLANT) (RESPONDENT) REVENUE BY : SHRI A.K.KHANDELWAL ASSESSEE BY : SHRI HIMANSHU SHAH O R D E R PER G.D. AGARWAL, VICE-PRESIDENT: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE CIT(A)-XI, AHMEDABAD DATED 5-2-2010 ARISING OUT OF THE ORDER OF THE ASSESSING OFFICER UNDER SECTION 27 1(1)(C) OF THE INCOME TAX ACT, 1961. 2. IN THIS APPEAL, THE ONLY GROUND RAISED READS AS UNDER: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY UNDER SECT ION 271(1)(C) OF RS.5,25,100/- 3. AT THE TIME OF HEARING BEFORE US, THE LEARNED CO UNSEL FOR THE ASSESSEE SUBMITTED THAT THE ABOVE PENALTY WAS LEVIED BY THE ASSESSING OFFICER ON ACCOUNT OF ADDITION OF RS.15,91,206/- BEING THE ACC RUED INTEREST ON DEEP DISCOUNT BONDS (DDBS). THAT THE ADDITION WAS DEL ETED BY THE ITAT VIDE ITS ORDER DATED 15-5-2009 IN ITA NO.3134 AND 3135/AHD/2 007. HE THEREFORE SUBMITTED THAT ONCE THE ADDITION ITSELF HAS BEEN DE LETED THE PENALTY BASED UPON SUCH ADDITION DOES NOT SURVIVE. THE LEARNED DR ON THE OTHER HAND RELIED UPON THE DECISION OF THE AO. ITA.NO.1049/AHD/2010 -2- 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED MATER IAL PLACED BEFORE US. ONCE THE ADDITION IN RESPECT OF THE PENALTY WAS LEV IED HAS BEEN DELETED BY THE ITAT, THE PENALTY HAS NO LEGS TO STAND. IN VIEW OF THE ABOVE, WE UPHOLD THE ORDER OF THE CIT(A) AND CANCEL THE PENALTY UNDER SE CTION 271(1)(C) OF THE ACT IMPOSED ON THE ASSESSEE. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25 TH JUNE, 2010. SD/- SD/- (T.K. SHARMA) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 25-06-2010 VK* COPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER AR, ITAT, AHMEDABAD