Superfine Photo Company Pvt. Ltd., Ahmednagar V. Income-tax Officer,

ITA 1359/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9230 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 15-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE , , , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI , AM . / I TA NO . 1359/PUN/2015 / ASSESSMENT YEAR : 2006 - 07 SUPERFINE PHOTO COMPANY PVT. LTD. 1267, PRATHIBHA, DALMANDAI, AHMEDNAGAR, PIN - 414 003 PAN : AAECS9467J ....... / APPELLANT / V/S. THE INCOME TAX OFFICER WARD - 4, AHMEDNAGAR. / RESPONDENT A PPELLANT BY : SHRI M.K KULKARNI R ESPONDENT BY : SHRI AJAY MODI / DATE OF HEARING : 28.06.2017 / DATE OF PRONOUNCEMENT : 30 .06.2017 / ORDER PER SUSHMA CHOWLA , JM TH E APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2, PUNE DATED 31.08.2015 RELATING TO ASSESSMENT YEAR 2006 - 07 AGAINST ORDER PASSED UNDER SECTION 271(1) (C) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: - 1 . ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE PENALTY LEVIED BY THE A.O U/S. 271(1)(C) OF RS. 3,19,696/ - WITHOUT APPRECIATING THE MERITS OF THE CASE. THE PENALTY BEING UNSUSTAINABLE BE DELETE D. 2 ITA NO . 1359/PUN/2015 A.Y. 2006 - 07 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE A.O. AND LD. CIT(A) FAILED TO APPRECIATE THE ORDER OF THE HONBLE TRIBUNAL IN ASSESSEES CASE NO. ITA/1127/PN/2010 DECIDED ON 27.05.2013 WHEREBY THE HONBLE TRIBUNAL WAS PLEASED TO DELETE THE ADDITION OF RS. 9,49,781/ - MADE BY THE AO REJECTING THE CLAIM MADE U/S. 80IA (4) AND WHICH WAS CONFIRMED BY CIT(A). IT IS PERTINENT TO NOTE THAT THE CAUSE OF LEVY OF PENALTY U/S. 271(1)(C) WAS REMOVED BY THE ORDER OF TH E HONBLE TRIBUNAL. THE PENALTY IS NOT SUSTAINABLE. IT BE QUASHED. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER OF THE HONBLE TRIBUNAL IN ITA/1127/PN/2010 WAS PART OF THE RECORD. THE EXPARTE APPEAL ORDER OF THE LD. CIT(A) IS DT. 31. 08.2015 WHICH IS SUBSEQUENT TO THE ORDER OF THE TRIBUNAL BY WHICH THE ADDITION WAS DELETED. UNDER THE CIRCUMSTANCES THE LEVY OF PENALTY U/S. 271(1)(C) WAS NOT JUSTIFIED. IT BE QUASHED. 4. THE APPELLANT CRAVES TO LEAVE, ADD/AMEND OR ALTER ANY OF THE ABOVE GROUNDS OF APPEAL. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST PENALTY LEVIED U/S. 271(1)(C) OF THE ACT AT RS. 3,19,696/ - . THE ASSESSEE BY WAY OF GROUND OF APPEAL AND ALSO THE LD. AR FOR THE ASSESSEE HAS POINTED OUT THAT THE ADDITION MADE BY THE ASSESSING OFFICER BY REJECTING THE CLAIM U/S. 80IA(4) OF THE ACT HAS BEEN DELETED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO. 1127/PN/2010 RELATING TO ASSESSMENT YEAR 2006 - 07 VIDE ORDER DATED 27.05.2013. IT IS FURTHER POINTED OUT THAT CLAIM OF DEDUCTION U/S. 80IA(4) OF THE ACT HAS BEEN ALLOWED TO THE AS SESSEE AND SINCE THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED AFTER REJECTION OF THE SAID CLAIM, THEN LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT WAS NOT SUSTAINABLE. HE FURTHER POINTED OUT THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS IGNORED THE ORDER OF THE TRIBUNAL AND PASSED EXPARTE ORDER. 4. THE LD. DR FOR THE REVENUE HAS PLACED RELIANCE ON THE ORDERS OF THE AUTH ORITIES BELOW. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD . THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT . 3 ITA NO . 1359/PUN/2015 A.Y. 2006 - 07 THE REASONS FOR LEVY OF PENALTY IS NON ALLOWANCE OF CLAIM OF DEDUCTION U/S 80IA( 4) OF THE ACT AT RS. 9,49,781/ - THE SAID ISSUE WAS DECIDED BY THE TRIBUNAL (SUPRA) AND CLAIM OF THE ASSESSEE WAS ALLOWED. THE ASSESSING OFFICER AND THE COMMISSIONER OF INCOME TAX (APPEALS) HAD LEVIED PENALTY ON ACCOUNT OF THE SAID ADDITION MADE BY DISALLOW ING THE CLAIM U/S. 80IA(4) OF THE ACT. ONCE THE CLAIM OF THE ASSESSEE HAS BEEN ALLOWED THEN THERE IS NO BASIS FOR LEVYING THE PENALTY U/S. 271(1)(C) OF THE ACT . THEREFORE , WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED U/S. 271(1)(C) OF THE A CT. ACCORDINGLY, GROUND S OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRO NOUNCED ON THIS 30 TH DAY OF JUNE , 201 7 . SD / - SD/ - (ANIL CHATURVEDI) ( SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 30 TH JUNE , 2017 . / PUNE; / DATED : 30 JUNE , 2017 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS) - 2, PUNE. 4. THE CIT - 2, PUNE. 5 . , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // TRUE COPY // / BY ORDER, /ASSISTANT REGISTRAR , / ITAT, PUNE .