Matra Ahar Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(3), Surat

ITA 1249/AHD/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68088 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 17-12-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 27-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Assessee Lawyers: G C PIPARA

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BENCH, AHMEDABAD BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ./ I.T.A. NO.1249/AHD/2011 ( / / / / ASSESSMENT YEAR : 2005-06) MATRA AHAR PVT.LTD. 304, SWAMINARAYAN INDS. ESTATE VILLAGE : TANTITHAYA TAL: PALSANA DIST.SURAT / VS. THE ITO WARD-1(3) SURAT ! '# ./$% ./ PAN/GIR NO. : AABCM5106F ( !& / // / APPELLANT ) .. ( '(!& / RESPONDENT ) !& ) ' / APPELLANT BY : SHRI G.C. PIPARA, A.R. '(!& * ) ' / RESPONDENT BY : SHRI R.K. DHANESTA, SR.DR +, * -# / / / / DATE OF HEARING : 17/12/2013 ./ * -# / DATE OF PRONOUNCEMENT : 31/12/2013 '0 / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-I, SURAT (CIT(A) FOR SHORT) DATED 11/03/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2005-06. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THA T THE LD.CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY OF RS.19,42,492/- MA DE BY THE ASSESSING OFFICER. ITA NO.1249/AHD /2011 MATRA AHAR PVT.LTD. VS. ITO ASST.YEAR 2005-06 - 2 - 3. IN THE INSTANT CASE, THE AO IN THE ASSESSMENT MA DE ADDITIONS IN RESPECT OF FOLLOWING FOUR ITEMS:- (I) DISALLOWANCE OF TRADE DISCOUNT - RS.26,30,2 72/- (II) SUPPRESSION OF SALES - RS.25,76,687/- (III) UNACCOUNTED PAYMENTS - RS. 37,030/- (IV) DISALLOWANCE OF RENT EXPENSES - RS. 18,0 00/- 3.1. THEREAFTER, THE AO LEVIED PENALTY U/S.271(1)(C ) OF THE ACT OF RS.19,42,492/- IN RESPECT OF THE ABOVE FOUR ADDITIO NS/DISALLOWANCES. 4. THE LD.CIT(A) VIDE HIS ORDER DATED 11/03/2011 CO NFIRMED THE ABOVE LEVY OF PENALTY. 5. BEING AGGRIEVED BY THE SAID ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD . THE LD.AR OF THE ASSESSEE SUBMITTED BEFORE US A COPY OF THE ORDER OF LD.CIT(A) PASSED IN QUANTUM APPEAL NO.CAS-I/127/2011-12 DATED 30/09/201 1 AND POINTED OUT THAT DISALLOWANCES/ADDITIONS OF RS.26,30,272/- AND RS.25,76,687/- WERE DELETED AND, THEREFORE, ARGUED THAT PENALTY U/ S.271(1)(C) OF THE ACT BE RESTRICTED TO ADDITIONS/DISALLOWANCES OF RS.37,0 30/- & RS.18,000/-. 6.1. WE FIND THAT THE LD.CIT(A) ON 30/09/2011 AFTER THE ISSUE OF ADDITIONS WERE RESTORED TO IT FOR FRESH ADJUDICATIO N BY THE TRIBUNAL HAS FOUND THAT ADDITIONS/DISALLOWANCES OF RS.26,30,272/ - & RS.25,76,687/- ARE NOT SUSTAINABLE AND, ACCORDINGLY, DELETED THE S AME. THEREFORE, THE ITA NO.1249/AHD /2011 MATRA AHAR PVT.LTD. VS. ITO ASST.YEAR 2005-06 - 3 - EARLIER CONFIRMATION OF LEVY OF PENALTY VIDE ORDER DATED 11/03/2011 BY THE LD.CIT(A) IN RESPECT OF ADDITIONS/DISALLOWANCE S TO THE EXTENT OF RS.26,30,272/- & RS.25,76,687/- ARE UNSUSTAINABLE. WE, THEREFORE, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND DIREC T THE AO TO RECOMPUTE THE PENALTY LEVIABLE U/S.271(1)(C) OF THE ACT IN TH E LIGHT OF OUR ABOVE DECISION. THUS, THE APPEAL OF THE ASSESSEE IS PART LY ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN COURT ON THE DATE MENTIONED HER EINABOVE AT CAPTION PAGE SD/- SD/- (MUKUL KR.SHRAWAT) ( N.S. SAINI ) JUDICIAL MEMBER AC COUNTANT MEMBER AHMEDABAD; DATED 31/12/2013 1.., .../ T.C. NAIR, SR. PS '0 * '-2 3'2- '0 * '-2 3'2- '0 * '-2 3'2- '0 * '-2 3'2-/ COPY OF THE ORDER FORWARDED TO : 1. !& / THE APPELLANT 2. '(!& / THE RESPONDENT. 3. - +4 / CONCERNED CIT 4. +4() / THE CIT(A)-I, SURAT 5. 278 '- , , / DR, ITAT, AHMEDABAD 6. 8 9, / GUARD FILE. '0+ '0+ '0+ '0+ / BY ORDER, (2- '- //TRUE COPY// : :: :/ // / $ $ $ $ ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 18.12.13(DICTATION-PAD 6-PAG ES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.12.13 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.31.12.13 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.12.13 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER