The ITO, Ward-1, Bhuj V. M/s Star Developers, Mundra (Kutch)

ITA 1173/RJT/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56755 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-09-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 20-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA PRABHAKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI T.K. SHARMA (JM) AND SHRI A.L. GEHLOT ( AM) I.T.A. NO.1173/RJT/2010 (ASSESSMENT YEAR 2005-06) ITO, WD.1 VS M/S STAR DEVELOPER BHUJ C/O HOME DESIGN NEAR DENA BANK OPP ST STAND, MUNDRA PAN : ABDFS9339L (APPELLANT) (RESPONDENT) DATE OF HEARING : 30-11-2011 DATE OF PRONOUNCEMENT : 02-11-2011 APPELLANT BY : SHRI KRISHNA PRABHAKAR RESPONDENT BY: WRITTEN SUBMISSION O R D E R PER T.K. SHARMA (JM) THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DA TED 30-06-2010 PASSED BY THE CIT(A)-II, RAJKOT CONFIRMING PENALTY OF RS.4 ,10,000 LEVIED BY ASSESSING OFFICER U/S 271(1)(C) OF THE I.T. ACT, 1961 FOR THE ASSESSMENT YEAR 2005-06. 2. ON THE DATE OF HEARING NONE WAS PRESENT FROM THE SIDE OF THE ASSESSEE. HOWEVER, A WRITTEN SUBMISSION WAS FILED WHEREIN IT IS STATED PENALTY IN QUESTION WAS LEVIED IN RESPECT OF THE FOLLOWING ADDITION CON FIRMED BY LD.CIT(A) IN QUANTUM APPEAL: 1. RS. 3,25,000 KHATRI ABIB YUNUS 2. RS. 3,15,000 KHATRI AMIN ISHAQ 3. RS. 4,15,156 KHTRI KASAM HUSSEN ITA NO.1173/RJT/2010 2 4. RS. 63,000 KHATRI MUNIR ABDUL AZIZ RS.11,18,156 TOTAL ASSESSEE ALSO FILED A COPY OF ORDER OF THE TRIBUNAL DATED 07-06-2010 IN IT NO.934/RJT/2009 FOR THE ASSESSMENT YEAR 2005-06 WHE REIN THE TRIBUNAL HAS DELETED THE AFORESAID ADDITION OF RS.11,18,156. ON THE BASIS OF THIS TRIBUNAL ORDER IT WAS CONTENDED THAT THE IMPUGNED ORDER OF L D.CIT(A) CANCELING THE PENALTY OF RS. 4,10,000 BE UPHELD. 3. SHRI KRISHNA PRABHAKAR THE LD.DR APPEARED FOR TH E REVENUE AND COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS MADE BY THE AS SESSEE IN THE WRITTEN SUBMISSION. 4. IT IS WELL SETTLED LAW THAT WHERE ADDITION MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIE D ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING THE PENALTY FOR CONCEAL MENT AND THEREFORE, IN SUCH A CASE, NO PENALTY COULD SURVIVE. 5. IN VIEW OF THIS, WE INCLINED TO UPHOLD THE ORDER OF LD.CIT(A) CANCELING THE PENALTY OF RS. 4,10,000. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THIS ORDER HAS BEEN PRONOUNCED ON THE DATE AS MENTI ONED ABOVE. SD/- SD/- (A.L. GEHLOT) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 02 ND DECEMBER, 2011 PK/- ITA NO.1173/RJT/2010 3 COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-II, RAJKOT 4. THE CIT-I, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT