M/s Himland Agro Foods Ltd., Chandigarh V. DCIT, Chandigarh

ITA 1172/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8268 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 11-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 271(1)(c); 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1172/CHD/2016 ASSESSMENT YEAR: 2009-10 M/S HIMLAND AGRO FOODS LIMITED, VS. THE DCIT, CC-1 , CHANDIGARH CHANDIGARH PAN NO. AAACH9406Q (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SUDHIR SEHGAL RESPONDENT BY : SH. MANJIT SINGH DATE OF HEARING : 07.03.2017 DATE OF PRONOUNCEMENT : 16.03.2017 ORDER PER BHAVNESH SAINI, JM THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAI NST THE ORDER OF LD. CIT(A)-3, GURGAON DATED 24.08.2016 FOR ASSESSMENT Y EAR 2009-10 CHALLENGING THE LEVY OF PENALTY U/S 271(1)(C) OF TH E ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSEE CHALLENGED THE ACTION OF THE CIT(A) IN UPHOLDING THE PENALTY LEVIED BY TH E ASSESSING OFFICER ON FOLLOWING AMOUNTS / ADDITIONS:- (I) ADDITION ON ACCOUNT TO PURCHASE BILL FOUND DURING THE SEARCH UNRECORDED IN BOOKS RS. 1,12,944/- 2 (II) ADDITION ON ACCOUNT OF UNRECORDED SALES RS. 34,522/- (III) ADDITION ON ACCOUNT OF FRESH CREDITORS INTRODUCED DURING THE YEAR RS., 31,19,422/- THE AUTHORITIES BELOW DISCUSSED THESE ADDITIONS IN THE IMPUGNED ORDER AND CONFIRMED THE ORDER OF THE ASSESSING OFFICER IN LEV YING PENALTY ON THESE ADDITIONS. 3. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT ASSESSEE HAD FILED APPEAL AGAINST QUANTUM ADDITIONS BEFORE I TAT, CHANDIGARH IN ITA NO. 747/CHD/2013 FOR ASSESSMENT YEAR 2009-10 AN D APPEAL OF THE ASSESSEE HAS BEEN ALLOWED PARTLY VIDE ORDER DATED 1 7.1.2017. COPY OF THE ORDER IS PLACED ON RECORD. LD. COUNSEL FOR THE ASSE SSEE SUBMITTED THAT ASSESSEE DID NOT PRESS ADDITION OF RS. 34,522/- EVE N ON QUANTUM, HE HAS THEREFORE, DID NOT PRESS THE LEVY OF PENALTY ON ADD ITION OF RS. 34,522/-. THE ORDERS OF THE AUTHORITIES BELOW TO THAT EXTENT ARE CONFIRMED AND THIS GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED AS NOT PRES SED. 4. AS REGARDS THE ADDITION OF RS. 1,12,944/-, THE L D. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TRIBUNAL VIDE ORDER DAT ED 17.1.2017 DELETED THE ADDITION. AS REGARDS ADDITION OF RS. 31,19,422/-, T HE TRIBUNAL HAS SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW VIDE ORDER DATE D 17.1.2017 AND MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER TO DE CIDE THE ISSUE AFRESH. THIS GROUND WAS ALLOWED FOR STATISTICAL PURPOSES. LD. CO UNSEL FOR THE ASSESSEE THEREFORE, SUBMITTED THAT NO PENALTY IS LEVIABLE ON THIS ADDITION. 3 5. LD. DR DID NOT DISPUTE THE ORDER OF THE TRIBUNAL THROUGH WHICH ONE OF THE ADDITION IS DELETED AND OTHER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER. 6. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT O F THE QUANTUM ORDER DATED 17.1.2017 IN WHICH ONE ADDITION HAVE BEEN DEL ETED AND OTHER ADDITION IS RESTORED TO THE FILE OF THE ASSESSING OFFICER, T HEREFORE, NO BASIS IS LEFT FOR REVENUE TO LEVY THE PENALTY ON THE ADDITION OF RS. 1,12,944/- AND RS. 31,19,422/-. IN THIS VIEW OF THE MATTER, THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE AND WE CANCEL THE PENALTY ON THE ADDI TION OF RS. 1,12,944 AND RS. 31,19,422/-. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE ACCORDINGLY ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 16 TH MARCH, 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR