M/s Parabolic Drugs Ltd, Chandigarh V. Deputy Commissioner of Income Tax, Chandigarh

ITA 1222/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8373 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 25-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI C.M. GARG, JUDICIAL MEMBER ITA NO.1222/CHD/2016 (ASSESSMENT YEAR : 2005-06) M/S PARABOLIC DRUGS LTD. VS. THE D.C.I.T., SCO 99-100, SECTOR 17-B, CENTRAL CIRCLE-1, CHANDIGARH. CHANDIGARH. PAN: AACCP1419L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI MANJIT SINGH SR.DR DATE OF HEARING : 18.01.2017 DATE OF PRONOUNCEMENT : 18.01.2017 O R D E R PER N.K. SAINI, A.M . : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28.9.2016 OF LEARNED COMMISSIONER O F INCOME TAX (APPEALS)-3, GURGAON RELATING TO ASSESSM ENT YEAR 2005-06. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPE AL RELATES TO SUSTENANCE OF PENALTY LEVIED BY THE ASSE SSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX A CT, 1961 (THEREINAFTER REFERRED TO AS THE ACT). DURI NG THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE ADDITION ON THE BASIS O F WHICH 2 PENALTY WAS LEVIED BY THE ASSESSING OFFICER HAS BEE N DELETED BY THIS BENCH OF THE TRIBUNAL IN ITA NO.240/CHD/2015 IN ASSESSEES OWN CASE VIDE ORDER D ATED 18.10.2016, COPY OF THE SAID ORDER WAS FURNISHED. 3. IN THE RIVAL SUBMISSIONS, THE LD. DR ALTHOUGH SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW BUT C OULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVA ILABLE ON RECORD. IT IS NOTICED THAT THE I.T.A.T., CHANDI GARH BENCH VIDE ORDER DATED 18.10.2016 IN ITA NO.240/CHD/2015 FOR ASSESSMENT YEAR 2005-06 IN ASSESSEES OWN CASE DELETED THE ADDITIONS MADE BY T HE ASSESSING OFFICER BY HOLDING THAT THE DISALLOWANCE MADE WAS UNWARRANTED. THEREFORE, THE ADDITIONS ON THE B ASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED BY THE ASSESS ING OFFICER AND SUSTAINED BY THE LD. CIT (APPEALS) ARE NOT IN EXISTENCE AND AS SUCH THE IMPUGNED PENALTY DESERVES TO BE SET ASIDE. 5. ON SIMILAR ISSUE, THE HON'BLE SUPREME COURT IN THE CASE OF K.C BUILDERS VS ACIT 265 ITR 562 (DEL.) HELD AS UNDER: WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO 3 PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. 6. IN VIEW OF THE ABOVE, THE PENALTY LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(L)(C) OF THE AC T FOR THE IMPUGNED ASSESSMENT YEAR AND SUSTAINED BY THE LD. C IT (APPEALS) IS DELETED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 18.01.2017. SD/- SD/- (C.M.GARG) (N.K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 18 TH JANUARY, 2017 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH