DCIT, Ludhiana V. Sh. Rohit Kumar, Ludhiana

ITA 1209/CHANDI/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7563 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 23-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH SMD, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.1209/CHD/2017 (ASSESSMENT YEAR : 2000-01) SH.SANJEEV GUPTA PROP.M/S JYOTI STEEL, VS. THE A.C.I.T., C/O VINOD GARD, 577-B, AGGAR NAGAR, CIRCLE-V, LUDHIANA. LUDHIANA. PAN: AANPG6524E (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI NIKHIL GOYAL, CA & ASHOK GOYAL, CA RESPONDENT BY : SHRI MANOJ KUMAR, SR. DR DATE OF HEARING : 03.07.2018 DATE OF PRONOUNCEMENT : 07.07.2018 ORDER PER ANNAPURNA GUPTA, A.M . : THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 2, LUDHIANA (HEREINAFTER REFERRED TO AS CIT(APPEALS )) DATED 30.6.2017, LEVYING PENALTY U/S 271(1)(C) OF THE INC OME TAX ACT,1961, (HEREINAFTER REFERRED TO AS ACT) RELATI NG TO ASSESSMENT YEAR 2000-01. 2. AT THE OUTSET, THE LD. COUNSEL FOR ASSESSEE INV ITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(APPEALS) DATED 31-03-17, WHEREIN PENALTY OF RS.30,000/- WAS IMPOSE D BY THE CIT(APPEALS).IT WAS POINTED OUT THEREFROM THAT THE PENALTY WAS LEVIED ON THE ENHANCEMENT MADE BY THE C IT(A) TO THE INCOME OF THE ASSESSEE TO THE EXTENT OF RS.1 LAC. IT ITA NO.1209/CHD/201 7 A.Y. 2000-01 2 WAS POINTED OUT BY THE LD. COUNSEL FOR ASSESSEE THA T IN APPELLATE PROCEEDINGS BEFORE THE LD.CIT(APPEALS) AG AINST THE ORDER PASSED U/S 148 R.W.S. 144 OF THE ACT, NOTICE OF ENHANCEMENT OF INCOME WAS ISSUED TO THE ASS ESSEE ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE INCURRED RELATING TO LEVY OF PENALTY BY THE CUSTOMS AUTHORITIES AND THE ENHANCEMENT THEREAFTER WAS MADE BY THE CIT(APPEALS) AFTER GIVING DUE OPPORTUNITY OF HEARING. THEREAFTER SATIS FACTION FOR INITIATING PENALTY PROCEEDINGS WAS RECORDED BY THE LD.CIT(APPEALS) AND IN PURSUANCE TO THE SAME NECESS ARY NOTICES WERE ISSUED TO THE ASSESSEE. IN THE PENALTY PROCEEDINGS BEFORE THE CIT(APPEALS) DUE REPLY WAS FILED BY THE ASSESSEE AFTER CONSIDERING WHICH, PENALTY @ 100 % OF THE TAX SOUGHT TO BE EVADED ON THE ENHANCEMENT MADE BY THE CIT(APPEALS) OF RS.1 LAC WAS LEVIED AMOUNTING TO RS.30,000/-. THE LD. COUNSEL FOR ASSESSEE POINTED O UT THAT THE IMPUGNED DISALLOWANCE MADE BY THE LD.CIT(APPEAL S) HAD BEEN DELETED BY THE I.T.A.T. IN ITS ORDER PASSE D IN ITA NO.958/CHD/2017 DATED 21.12.2017. COPY OF THE ORDER WAS PLACED BEFORE US. 3. THE LD. DR FAIRLY CONCEDED THAT THE ADDITION MAD E BY THE CIT(APPEALS) BY ENHANCING THE INCOME OF THE ASS ESSEE BY RS.1 LAC, HAD BEEN DELETED BY THE I.T.A.T. IN TH E SAID ORDER. 4. IN VIEW OF THE SAME, WE FIND THAT SINCE THE ADDI TION MADE ON WHICH PENALTY WAS LEVIED BY THE CIT(APPEALS ) ITA NO.1209/CHD/201 7 A.Y. 2000-01 3 HAVING BEEN DELETED BY THE I.T.A.T., NO BASIS REMAI NS AT ALL FOR LEVYING PENALTY AND THE SAME IS DIRECTED TO BE DELETED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS, TH EREFORE, ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 9 TH JULY, 2018 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH