The DCIT, Circle-1, Surat V. M/s. Jay Vijay Prints Pvt.Ltd., Surat

ITA 126/AHD/2010

• Counselvise Citation: 12620514 RSA 2010
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 13-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: U S BHATI
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE SHRI BHAVNESH SAINI, JM AND SHRI A. K. GARO DIA, AM) ITA NO. 126/AHD/2010 A. Y.: 2004-05 THE D. C. I. T., CIRCLE-1, ROOM NO.108, AAYAKAR BHAVAN, MAJURA GATE, SURAT VS M/S. JAY VIJAY PRINTS PVT. LTD., 1036,ANMOL TEXTILE MARKET, RING ROAD, SURAT PA NO. AAACJ 5969 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI B. L. YADAV, DR RESPONDENT BY SHRI U. S. BHATI, AR DATE OF HEARING: 11-01-2012 DATE OF PRONOUNCEMENT: 11 -01-2012 O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-I, SURAT DATED 12-11-2009, FOR ASSESSMENT YEAR 2004-05, CHALLENGIN G THE CANCELLATION OF PENALTY U/S 271 (1) ( C ) OF THE IT ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSME NT WAS COMPLETED VIDE ORDER DATED 05-12-2006 U/S 143 (3) O F THE IT ACT. THE AO MADE ADDITION OF RS.10,51,502/- ON ACCOUNT OF EX CESSIVE PAYMENT MADE TO SPECIFIED PERSON U/S 40A (2) (B) OF THE IT ACT AND ADDITION OF RS.24,40,960/- ON ACCOUNT OF FALL IN GR OSS PROFIT RATE. PENALTY PROCEEDINGS WERE INITIATED AND VIDE SEPARAT E ORDER PENALTY ITA NO.126/AHD/2010 THE DCIT, CIR-1, SURAT VS M/S. JAY VIJAY PRINTS PVT . LTD. 2 U/S 271 (1) (C) OF THE IT ACT WAS IMPOSED. THE LEAR NED CIT(A) NOTED THAT MERELY DISALLOWANCES HAVE BEEN MADE AND UP-HEL D THE ADDITIONS WOULD NOT BE A GROUND TO LEVY PENALTY. THE APPEAL O F THE ASSESSEE CANCELING THE PENALTY WAS ACCORDINGLY ALLOWED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE ASSESSEE PREFERRED QUANTUM APPEAL BEFORE I TAT AHMEDABAD B BENCH IN THE CASE OF THE SAME ASSESSEE IN ITA NO.3882/AHD/2007 AND VIDE ORDER DATED 29-12-2011, B OTH THE ADDITIONS HAVE BEEN DELETED. COPY OF THE ORDER OF T HE TRIBUNAL IS PLACED ON RECORD WHICH IS NOT DISPUTED BY THE LEARN ED DR. 4. CONSIDERING THE ABOVE FACTS, WE ARE OF THE VIEW THE APPEAL OF THE REVENUE HAS NO MERIT AND IS LIABLE TO BE DISMIS SED. BOTH THE ADDITIONS ON WHICH PENALTY WAS IMPOSED AND CANCELLE D BY THE LEARNED CIT(A) HAVE BEEN DELETED BY THE TRIBUNAL ON QUANTUM APPEAL VIDE ORDER DATED 29-12-2011. THEREFORE, NO BASIS IS LEFT FOR LEVY OF PENALTY. DEPARTMENTAL APPEAL FAILS AND IS DISMISSED . 5. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (A. K. GARODIA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT DEKA/ LAKSHMIKANT DEKA/ LAKSHMIKANT DEKA/ LAKSHMIKANT DEKA/ ITA NO.126/AHD/2010 THE DCIT, CIR-1, SURAT VS M/S. JAY VIJAY PRINTS PVT . LTD. 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD