Assistant Commissioner of Income-tax, V. Arvind Dyeing & Bleaching Mills Pvt. Ltd., Kolhapur

ITA 1291/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7501 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 21-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Depreciation; Initiation of penalty proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 1 291 /P U N/201 5 / ASSESSMENT YEAR : 20 1 1 - 1 2 THE ASST. COMMISSIONER OF INCOME TAX, ICHALKARANJI CIRCLE, ICHALKARANJI . / APPELLANT VS. ARVIND DYEING & BLEACHING MILLS PVT. LTD., ARVIND HOUSE, OLD INDL. ESTATE, IC HALKARANJI, DIST. KOLHAPUR 416115 . / RESPONDENT PAN: AABCA5543N / APPELLANT BY : S HRI MUKESH JHA / RESPONDENT BY : NONE / DATE OF HEARING : 16 .0 8 . 2017 / DATE OF PRONOUNCEMENT: 31 . 0 8 .201 7 / ORDER PER SUSHMA CHOWLA, J M : TH E APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT (A) - 1 &2 , KOLHAPUR , DATED 12 .0 6 .2015 RELATING TO ASSESSMENT YEAR 20 1 1 - 1 2 AGAINST PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . ITA NO. 1 291 /P U N/20 1 5 ARVIND DYEING AND BLEACHING MILLS PVT. LTD. 2 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(APPEALS) IS NOT JUSTIFIED IN DELETING THE PENALTY U/S 271(1)(C) OF THE ACT, LEVIED BY AO OF RS.20,91,726/ - FOR NOT OFFERING THE PROCEEDS OF THE NAV FOR TAXATION AS PER PROVISIONS OF SECTION 28(VI) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(APPEALS) IS NOT JUSTIFIED IN IGNORING THE FA CT THAT THE ASSESSEE HAS ADMITTED THE INCOME AND NOT CONTESTED THE ISSUE IN APPEAL. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), KOLHAPUR BE VACATED AND THAT OF THE AO BE RESTORED. 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION WAS FILED FOR ADJOURNMENT. WE PROCEED TO DECIDE THE APPEAL AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE, SINCE THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY EA RLIER ORDERS OF THE TRIBUNAL. 4. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS IN RELATION TO PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT AT RS.20,91,726/ - . 5. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE HAD FURNISHED THE RETURN OF INCOME DECL ARING TOTAL INCOME AT NIL AFTER CLAIMING DEDUCTION UNDER SECTION 80IA(4)(IV) OF THE ACT. THE ASSESSING OFFICER RE - WORKED THE DEPRECIATION CLAIMED BY THE ASSESSEE ON THE WINDMILL INSTALLED BY THE ASSESSEE. THE NEXT ISSUE WAS THE MATURITY OF KEYMAN INSURAN CE WHICH WAS TAXED IN THE HANDS OF ASSESSEE UNDER SECTION 28(VI) OF THE ACT AT RS.67,69,340/ - . THE ASSESSING OFFICER HELD THAT FOR CONCEALMENT OF INCOME OF RS.67,69,340/ - AS WELL AS FOR FURNISHING INACCURATE PARTICULARS OF SUCH INCOME PENAL PROCEEDINGS U/ S. 271(1)(C) OF THE INCOME TAX ACT, 1961 ARE INITIATED, SEPARATELY. THE ASSESSING OFFICER THEREAFTER, LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME. ITA NO. 1 291 /P U N/20 1 5 ARVIND DYEING AND BLEACHING MILLS PVT. LTD. 3 6. THE CIT(A) HAS DELETED THE PENALTY LEVIED UNDE R SECTION 271(1)(C) OF THE ACT ON THE GROUND THAT THE ASSESSEE HAD FURNISHED COMP LETE DETAILS IN THIS REGARD AND THERE WAS NO ATTEMPT BY THE ASSESSEE TO CONCEAL ANY FACT FROM THE ASSESSING OFFICER. 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, WE FIND THAT THE ISSUE OF RECORDING OF SATISFACTION IS COVERED BY THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. SHRI SAMSON PERINCHERY IN INCOME TAX APPEAL NO.1154 OF 2014 WITH OTHER INCOME TAX APPEALS NOS.953 OF 2014, 1097 OF 2014 AND 1226 OF 2014, JUDGMENT DATED 05.01.2017 AND HENCE, WE PROCEED TO DECIDE THE ISSUE ACCORDINGLY . 9. THE PERUSAL OF ASSESSMENT ORDER REFLECTS THE ASSESSING OFFICER TO HAVE INITIA TED PENALTY PROCEEDINGS FOR CONCEALMENT OF INCOME OF RS.67,69,340/ - AS WELL AS FOR FURNISHING INACCURATE PARTICULARS OF SUCH INCOME. THE HONBLE BOMBAY HIGH COURT IN CIT VS. SHRI SAMSON PERINCHERY (SUPRA) HAS HELD THAT WHILE RECORDING SATISFACTION FOR INI TIATING PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT, THE ASSESSING OFFICER SHOULD COME TO A FINDING AS TO WHICH LIMB OF SAID SECTION IS ATTRACTED AND INITIATE PENALTY PROCEEDINGS ACCORDINGLY. HOWEVER, IN THE FACTS OF PRESENT CASE, PENALTY PROCE EDINGS HAVE BEEN INITIATED FOR VIOLATING BOTH THE LIMBS OF SAID SECTION I.E. CONCEALMENT OF INCOME AND ALSO FOR FURNISHING INACCURATE PARTICULARS OF INCOME. ADMITTEDLY, PENALTY HAS BEEN LEVIED FOR FURNISHING INACCURATE PARTICULARS OF INCOME BUT WHILE INIT IATING PENALTY , THE ASSESSING OFFICER HAS FAILED TO SHOW CAUSE AS TO WHICH LIMB IS NOT SATISFIED IN THE CASE OF ASSESSEE AND IN THE ABSENCE OF THE ITA NO. 1 291 /P U N/20 1 5 ARVIND DYEING AND BLEACHING MILLS PVT. LTD. 4 SAME, WE FIND NO MERIT IN INITIATION OF PENALTY PROCEEDINGS IN THE PRESENT CASE. CONSEQUENTLY, PENALTY ORDER PASSED BY THE ASSESSING OFFICER DOES NOT STAND. WE HAVE DELETED LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT ON A GROUND OTHER THAN ONE DECIDED BY THE CIT(A). ACCORDINGLY, WE DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE. 1 0 . IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 31 ST DAY OF AUGUST , 201 7 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 31 ST AUGUST , 201 7 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - 1 &2 , KOLHAPUR ; 4. / THE CIT - I/II, KOLHAPUR / CIT (CENTRAL), PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE