ACIT, Ludhiana V. Sh. Amrik Singh, Ludhiana

ITA 1065/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4491 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 23-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JASWINDER SINGH
• Keywords: Deemed dividend

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 1065/CHD/2012 ASSESSMENT YEAR: 2006-07 THE ACIT , .VS. SH. AMRIK SINGH CIRCLE-I. PROP.M/S NEXO PRODUCTS(INDIA) LUDHIANA E 92, FOCAL POINT LUDHIANA PAN NO. AFRPS2729E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. AKHILESH GUPTA RESPONDENT BY : SHRI. JASWINDER SINGH DATE OF HEARING : 26/09/2013 DATE OF PRONOUNCEMENT: 18.10.2013 ORDER PER T.R.SOOD, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 28/08/2012 OF CIT (APPEALS)-I, LUDHIANA. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L :- 1. THAT LD. CIT(A) HAS ERRED IN LAW IN DELETING THE P ENALTY IMPOSED BY THE A.O. AT RS. 64,61,538/- U/S 271(1)(C ) FOR NOT DECLARING THE INCOME U/S 2(22)(E) OF THE I.T. ACT 1 961, IN 2 RESPECT OF THE AMOUNT RECEIVED AS ADVANCE FROM THE COMPANY IN WHICH HE WAS A DIRECTOR WITH SUBSTANTIAL VOTING POW ER WITH 34.71%. 2. THAT THE ORDER OF THE LD. CIT(A) BE SET ASIDE AND T HAT OF A.O. BE RESTORED. 3. BEFORE US, LD. DR RELIED ON THE ORDER OF ASSESSI NG OFFICER. 4. ON THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE FILED A COPY OF THE ORDER OF TRIBUNAL FOR ASSESSMENT YEAR 2006-07 I N ITA NO. 923 & 970/CHD/2009. HE PARTICULARLY REFERRED TO PARA 19 OF THE ORDER THROUGH WHICH ADDITION MADE BY THE ASSESSING OFFICER HAS BE EN DELETED, THEREFORE, PENALTY WOULD NOT SURVIVE. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE FIND THAT ADDITION ON ACCOUNT OF DIVIDEND INCOME WAS DELETED BY THE TRIBU NAL VIDE PARA 19 IN THE ASSESSEES CASE FOR ASSESSMENT YEAR 2006-07 IN ITA NOS. 923 & 970/CHD2009. PARA 19 OF THE ORDER READS AS UNDER: - 19. ACCORDINGLY, WE ALSO ORDER TO DELETE THE SUSTAINED ADDITION BY ORDERING THAT THE ENTIRE AMOUNT ADDED IN THIS ACCOUNT, BY TREATING AS DEEMED DIVIDEND BY THE AO HAS BEEN DELETED. CONSEQUENTLY, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED THE GROUND RAISED BY THE REVENUE IN THIS REGARD IS DISMISSED. 6. ONCE THE ADDITION MADE STANDS DELETED, THE PENAL TY PROCEEDINGS WOULD NOT SURVIVE AND ACCORDINGLY WE CONFIRM THE AC TION OF THE LD. CIT(A) IN CANCELLING THE PENALTY. 3 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18.10.20 13 SD/- SD/- (SUSHMA CHOWLA) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 18 TH OCT, 2013 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH