M/s. Nabros, Ahmedabad V. The ACIT., Circle-9, Ahmedabad

ITA 1271/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6012 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-06-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 10-04-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K KHANDELWAL
• Assessee Lawyers: M G PATEL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : A HMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HON'BLE SH RI N.S. SAINI , A.M.) I.T.A. NO. 1271/AHD./2008 ASSESSMENT YEAR : 2002-2003 M/S. NABROS, AHMEDABAD -VS.- I NCOME TAX OFFICER, WARD-9(4), AHMEDABAD (PAN : AADFN 5740 R) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.G. PATEL RESPONDENT BY : SHRI A.K. KHANDELWAL, D.R. O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER DATED 12.03.2008 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-XV, AHMEDABAD I N CONFIRMING THE PENALTY OF RS.8,29,400/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2002-03. 2. AT THE TIME OF HEARING BEFORE US, ON BEHALF OF A SSESSEE SHRI M.G. PATEL, LD. COUNSEL APPEARED AND PRODUCED A COPY OF THE DECISION DATED 20.11.2009 OF ITAT, A BENCH, AHMEDABAD IN ITA NO. 10/AHD/2006 FOR THE ASSESSMENT YEAR 2002-03 IN ASSESSEES OWN CASE AND CONTENDED THAT IN THIS ORDER, THE TRIBUNAL HAS DELETED BOTH THE ADDITIONS ON THE BASIS OF WHICH ASSESSING OFFICER LEVIED THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT AND CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) IN THE IMPUGNED ORDER. HE ACCORDINGLY CONTENDED THAT SINCE IN THE QUANTUM APPEAL, THE ADD ITIONS ARE DELETED, THE PENALTY CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) IN THE IMPUGNED ORDER BE CANCELLED. 3. ON THE OTHER HAND, SHRI A.K. KHANDELWAL, D.R. AP PEARING ON BEHALF OF THE REVENUE COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS MADE BY TH E LD. COUNSEL OF THE ASSESSEE. 4. WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUT HORITIES BELOW. IT IS PERTINENT TO NOTE THAT THE ASSESSING OFFICER LEVIED THE PENALTY ON THE GRO UND THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME TO THE EXTENT OF RS.23,69,733 /- (I.E. RS.15,66,133/- + RS.8,03,600/-). IN THE QUANTUM APPEAL, THE ITAT VIDE ORDER DATED 20.11.200 9 (SUPRA) DELETED BOTH THE AFORESAID TWO 2 ITA NO. 1271/AHD/2008 ADDITIONS. IT IS WELL SETTLED LAW THAT WHERE THE AD DITIONS, MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, A RE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING THE PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE, NO PENALTY CAN SURVIVE AND PENALTY IS LIABLE TO BE CANCELLED. WE, THEREFORE, C ANCEL THE PENALTY OF RS.8,29,400/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE IN COME TAX ACT, 1961. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 11.06.201 0 SD/- SD/- (N.S. SAINI) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 11 / 06 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED, (4) CIT CONCERNED, (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGI STRAR, ITAT, AHMEDABAD LAHA/SR.P.S.