M/s Arihant Foam (P) Ltd., Chandigarh V. ITO, Chandigarh

ITA 1290/CHANDI/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5181 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1290/CHD/2016 ASSESSMENT YEAR: 2009-10 M/S ARIHANT FOAM (P) LTD., VS. THE ITO, CHANDIGARH WARD-4, CHANDIGARH PAN NO. AACCA9036F (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ASHOK GOYAL RESPONDENT BY : SH. MANJIT SINGH DATE OF HEARING : 11.04.2017 DATE OF PRONOUNCEMENT : 21. 04.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 22.09.2016 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-2 [HEREINAFTER REFERRED TO AS CIT(A)], CHANDIGARH. 2. THE ASSESSEE IS AGGRIEVED BY THE ACTION OF THE C IT(A) IN CONFIRMING THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. AT T HE OUTSET, LD. AR OF THE ASSESSEE HAS PRODUCED BEFORE US, A COPY OF THE ORDE R DATED 25.1.2017 OF 2 THIS TRIBUNAL PASSED IN ITA NO. 199/CHD/2014 RELEVA NT TO ASSESSMENT YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2009-10 AN D HAS STATED THAT THE QUANTUM ADDITIONS IN RESPECT OF WHICH THE IMPUGNED PENALTY WAS LEVIED BY THE ASSESSING OFFICER HAVE ALREADY BEEN DELETED BY THE TRIBUNAL VIDE ABOVE STATED ORDER DATED 25.1.2017 (SUPRA). WE HAVE GONE THROUGH THE ORDER DATED 25.1.2017 AND FIND THAT ADDITION OF RS. 7,18, 000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CASH FOUND DURING T HE COURSE OF SURVEY AND RS. 74,82,000/- ON ACCOUNT OF ALLEGED EXCESS STOCK HAS BEEN DELETED BY THE TRIBUNAL. 3. THE LD. DR HAS ALSO FAIRLY ADMITTED THAT THE QUA NTUM ADDITION IN RESPECT OF PENALTY LEVIED BY THE ASSESSING OFFICER HAS ALREADY BEEN DELETED. SINCE THE VERY BASIS UPON WHICH THE PENALTY HAS BEE N LEVIED HAS CEASED TO EXIST, THEREFORE, THE IMPUGNED PENALTY HAS NO LEGS TO STAND, THE SAME IS ACCORDINGLY ORDERED TO THE DELETED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HER EBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.04.2017 SD/- SD/- ( ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 ST APRIL, 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR