The ACIT, Circle-6, Surat V. M/s. Nanavati Motors, Surat

ITA 1176/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8672 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-03-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 19-03-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH SRDR
• Keywords: Initiation of penalty proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD BBENCH BEFORE SHRI G.D. AGARWAL, VICE-PRESIDENT (AZ) AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.1176/AHD/2007 [ASSTT.YEAR 2001-02] ASSTT. COMMISSIONER OF INCOME-TAX VS M/S. NANAVATI MOTORS CIRCLE-6, SURAT, ROOM NO.218, NEAR RAJHANS CINEMA , AAYAKAR BHAVAN, MAJURA GATE, PIPLOD, SURAT SURAT PAN NO.AACFN1015G (APPELLANT) (RESPONDENT) REVENUE BY :SMT.NEETA SHAH, SR-DR ASSESSEE BY: SHRI MANISH J SHAH, AR ORDER RESER VED FOR PRONOUNCEMENT ON 17/3/10 O R D E R PER MAHAVIR SINGH, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS ARISING OUT OF THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-IV, SURAT IN APPEAL NO.CAS- IV/92/06-07 DATED 03-01- 2007. THE PENALTY WAS LEVIED BY ACIT, CIRCLE-6, SUR AT U/S.271(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT) VIDE HIS ORDER DATED 29-03-2006 FOR ASSESSMENT YEAR 2001-02. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S.271(1)(C) OF THE ACT. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE FI LED COPY OF TRIBUNALS ORDER IN ITA NO.3442/AHD/2004 DATED 14-09-2007 IN QUANTUM APPEAL, WHEREBY THE ITA NO.1176/AHD./2007 A.Y.2001-02 ACIT, CIR-6 SURAT V. M/S. NANAVATI MOTORS PAGE 2 TRIBUNAL HAS SET ASIDE THE ISSUE OF COMMISSION EXPE NSES TO THE FILE OF ASSESSING OFFICER BY GIVING FOLLOWING FINDINGS IN PARA-7, ON WHICH THE PENALTY WAS LEVIED, WHICH READS AS UNDER:- 7. WE HAVE HEARD BOTH PARTIES AND PERUSED RECORD. APROPOS GROUND NO.2, DISALLOWANCE OF TELEPHONE EXPENSE, WE SEE NO INFIRMITY IN THE ORDER OF CIT(A) DISALLOWING 1/4 TH TELEPHONE EXPENSES. THIS GROUND OF THE ASSESSEE IS DISMISSED. COMING TO COMMISSION EXPENSES, WE FIND THAT MANY OF THE VOUCHERS AND CONFORMATIONS FILED BY THE ASSESSEE HAVE NOT BE EN PROPERLY VERIFIED. IN VIEW THEREOF, WE SET ASIDE THE ISSUE O F COMMISSION PAYMENT BACK TO THE FILE OF AO TO DECIDE THE SAME AFRESH IN ACCORDANCE WITH THE LAW. 3. AS THE TRIBUNAL HAS SET ASIDE THE QUANTUM ADDIT ION, THE PENALTY WILL NOT SURVIVE. HOWEVER, ASSESSING OFFICER IS FREE TO INI TIATE THE PENALTY PROCEEDINGS U/S.271(1) OF THE ACT, IF HE COMES TO A CONCLUSION , THAT, THIS IS A FIT CASE FOR INITIATION OF PENALTY PROCEEDINGS DURING THE COURSE SET ASIDE PROCEEDINGS. THIS ISSUE OF THE REVENUES APPEAL IS DISMISSED AS INDIC ATED ABOVE. 3. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS DAY OF 26 TH MARCH,2010 SD/- SD/- ( G.D.AGARWAL ) ( MAHAVIR SINGH ) (VICE PRESIDENT) (JUDICIAL MEMBER) AHMEDABAD, DATED : 26/03/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- IV, SURAT 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD