Shreno Limited, Baroda V. The ACIT, Circle-4, Baroda

ITA 1186/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8536 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH MEENA
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 1186/AHD/2015 / ASSESSMENT YEAR : 2008-2009 SHRENO LIMITED, ALEMBIC ROAD, BARODA-390 016 PAN : AABCA 7953 Q VS ACIT, CIRCLE-4, BARODA ./ ITA NO. 1271/AHD/2015 / ASSESSMENT YEAR : 2008-2009 ACIT, CIRCLE-4, BARODA VS SHRENO LIMITED, ALEMBIC ROAD, BARODA-390 016 PAN : AABCA 7953 Q / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SMT. URVASHI SHODHAN, AR REVENUE BY : SHRI RAJESH MEENA, SR DR DATE OF HEARING : 05/04/2018 DATE OF PRONOUNCEMENT IN COURT : 05/04/2 018 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE ASSESSEE AND REVENUE ARE IN CROSS-APPEALS AGAIN ST THE ORDER OF THE LEARNED CIT(A)-2, VADODARA DATED 16.02.2015 PAS SED FOR ASSESSMENT YEAR 2008-09. 2. THE GRIEVANCES IN THE RESPECTIVE APPEALS RELATE TO CONFIRMATION/DELETION OF PENALTY WHICH WAS LEVIED B Y THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. IT EMERGES OUT FROM THE RECORD THAT THE ASSESSIN G OFFICER VISITED THE ASSESSEE WITH THE PENALTY UNDER SECTION 271(1)(C) O F THE ACT ON TWO COUNTS; (A) DISALLOWANCE U/S 14A OF THE ACT FOR RS. 77,45,3 50/- AND (B) FOREIGN ITA NOS. 1186 & 1271/AHD/2015 ACIT VS. M/S. SHRENO LIMITED AY : 2008-09 2 TRAVELLING EXPENSES AMOUNTING TO RS.9,74,612/-. W ITH REGARD TO THE DELETION OF PENALTY ON DISALLOWANCE UNDER SECTION 14A OF THE ACT, THE DEPARTMENT IS IN APPEAL AND WITH REGARD TO CONFIRMATION OF PENALT Y ON DISALLOWANCE ON ACCOUNT OF FOREIGN TRAVELLING EXPENDITURE, THE ASSE SSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING BEFORE US, IT HAS BEEN BR OUGHT TO OUR NOTICE THAT BOTH THE AFORESAID ADDITIONS HAVE BEEN DELETED BY T HE TRIBUNAL VIDE ITA NO. 1452/AHD/2012, DECIDED ON 27.12.2016. COPY OF THE TRIBUNALS ORDER HAS BEEN PLACED ON RECORD. WE FIND THAT SUB-CLAUSE (II I) OF SECTION 271(1)(C) PROVIDES MECHANISM FOR QUANTIFICATION OF PENALTY. IT CONTEMPLATES THAT THE ASSESSEE WOULD BE DIRECTED TO PAY A SUM IN ADDITION TO TAXES, IF ANY, PAYABLE HIM, WHICH SHALL NOT BE LESS THAN, BUT WHICH SHALL NOT EXCEED THREE TIMES THE AMOUNT OF TAX SOUGHT TO BE EVADED BY REASON OF CONC EALMENT OF INCOME AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. IN OTHER WORDS, THE QUANTIFICATION OF THE PENALTY IS DEPENDED UPON THE ADDITIONS MADE TO THE INCOME OF THE ASSESSEE. SINCE BASIS FOR VISITING T HE ASSESSEE WITH PENALTY HAS BEEN EXTINGUISHED BY DELETING ADDITIONS BY THE TRIB UNAL IN ITS ORDER DATED 27.12.2016 (SUPRA) IN THE QUANTUM APPEAL OF THE ASS ESSEE, THE IMPUGNED PENALTY IS NON EST, AND ACCORDINGLY PENALTY UNDER SECTION 271(1)(C) OF THE ACT STANDS CANCELLED. APPEAL OF THE ASSESSEE IS THUS A LLOWED AND THAT OF REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED ; WHEREAS THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 5 TH APRIL, 2018 AT AHMEDABAD. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 05/04/2018 *BIJU T., SR. PS ITA NOS. 1186 & 1271/AHD/2015 ACIT VS. M/S. SHRENO LIMITED AY : 2008-09 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD