Deputy Commissioner of Income tax, V. M/s. Sujata Farms Pvt Ltd, Pune

ITA 106/PUN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1628 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT BOBADE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO S . 106 & 107 /P U N/201 7 / ASSESSMENT YEAR S : 20 07 - 08 & 20 08 - 09 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 6, PUNE . / APPELLANT VS. M/S. SUJATA FARMS PVT. LTD., 35/15, CHNADRASEN APARTMENT, PRABHAT ROAD, LANE NO.8, PUNE 411001 . / RESPONDENT PAN: AACCS5879C / APPELLANT BY : SHRI AMIT BOBADE / RESPONDENT BY : S HRI PRATEEK JHA / DATE OF HEARING : 1 5 . 1 1 .201 8 / DATE OF PRONOUNCEMENT: 27 . 11 .201 8 / ORDER PER SUSHMA CHOWLA, J M : BOTH T HE APPEAL S FILED BY REVENUE ARE AGAINST SEPARATE ORDER S OF CIT (A) - 4, PUNE , BOTH DATED 0 7 .0 9 .2016 RELATING TO ASSESSMENT YEAR S 20 07 - 08 AND 20 08 - 09 AGAINST LEVY OF PENALTY UNDE R SECTION 271(1)(C) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT). 2. BOTH THE APPEALS FILED BY REVENUE RELATING TO THE SAME ASSESSEE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE ITA NO S . 106 & 107 /P U N/20 1 7 SUJATA FARMS PVT. LTD. 2 SAKE OF CONVENIENCE. BOTH THE APPEAL S FILED BY REVENUE ARE AGAINST ORDER OF CIT(A) IN DELETING PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT. HOWEVER, IN ORDER TO ADJUDICATE THE ISSUE, REFERENCE IS BEING MADE TO THE FACTS AND ISSUES IN ITA NO.106/PUN/2017 RELATING TO ASSESSMENT YEAR 200 7 - 08. 3. THE REVENUE IN ITA NO.106/PUN/2017, RELATING TO ASSESSMENT YEAR 2007 - 08 HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY U/S 271(1)(C) O F THE IT ACT, 1961 WITHOUT CONSIDERING THE MERITS OF THE CASE. 2. FOR THIS AND SUCH OTHER REASONS AS MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE CIT(A) BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSING OFFICER HAD LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT ON THE ADDITION MADE IN THE HANDS OF ASSESSEE BY NOT ACCEPTING THE METHOD OF RECOGNITION OF INCOME AND CONSEQUENT ADDITION. HOWEVER, THE SAID ADDITION HAS BEEN DELETED BY T HE TRIBUNAL VIDE ITA NOS.2047 TO 2052/PN/2012, RELATING TO ASSESSMENT YEARS 2003 - 04 TO 2008 - 09. THE TRIBUNAL HAD DELETED THE ADDITION IN THE HANDS OF ASSESSEE VIDE PARAS 13 AND 14 WHICH ARE REPRODUCED BY THE CIT(A) UNDER PARA 7 OF APPELLATE ORDER AND HAD DIRECTED THE ASSESSING OFFICER TO ACCEPT RETURN / LOSS DECLARED IN THE RESPECTIVE YEARS. THE CIT(A) IN VIEW OF THE QUANTUM ADDITION BEING DELETED, HELD THAT LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT BECOMES INFRUCTUOUS AND HENCE, DIRECTED THE ASS ESSING OFFICER TO DELETE THE SAME. 5. THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF CIT(A). ITA NO S . 106 & 107 /P U N/20 1 7 SUJATA FARMS PVT. LTD. 3 6. WE FIND NO MERIT IN THE GROUNDS OF APPEAL RAISED BY REVENUE, WHEREIN THE QUANTUM ADDITION MADE IN THE HANDS OF ASSESSEE STANDS DELETED, HENCE THERE IS NO BASIS FOR LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. CONFIRMING THE ORDER OF CIT(A), WE DISMISS THE GROUNDS OF APPEAL RAISED BY REVENUE IN BOTH THE APPEALS. 7 . IN THE RESULT, BOTH THE APPEALS OF REVENUE ARE DISMISSED. ORDER PRONOUNCED ON THIS 2 7 TH DAY OF NOVEMB ER , 201 8 . SD/ - SD/ - (ANIL CHATURVEDI) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 27 TH NOVEM BER , 201 8 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 4 , PUNE ; 4. THE PR. CIT - 3 , PUNE ; 5. 6. , , / DR B , ITAT, PUNE ; / GUARD FILE . / BY ORDE R , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE