The DCIT, Circdle-9, Surat V. M/s. Priyanka Gems, Surat

ITA 143/AHD/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89309 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-05-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 18-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C MISHRASR
• Keywords: Gross profit estimation

Judgement Text

1 ITA.NO. 143 /AHD/2012 ASSESSMENT YEAR 2005-2006 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHME DABAD (BEFORE SHRI N.S.SAINI ACCOUNT ANTMEMBER AND SHRI S. S. GODARA JUDICI AL MEMBER.) ITA NO.143/AHD/2012 (ASSESSMENT YEAR: 2005 -2006) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-9, ROOM NO.414, AAYAKAR BHAVAN, MAJURA GATE, SURAT-395001. ...............APPEL LANT VS. M/S. PRIYANKA GEMS, 1, TAPOVAN ESTATE, BEHIND JEEVANDHARA HOTEL, VARACHHA ROAD, SURAT-395006. ............. ....RESPONDENT [PAN AADFP2302H] REVENUE BY : SHRI D.C. MISHRA,SR.D.R. RESPONDENT BY: WRITTEN SUBMISSION DATE OF HEARING : 08-05-2015 DATE OF PRONOUNCEMENT : 08-05-2015 O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-V, SURAT DATED 5-9-2011. 2 ITA.NO. 143 /AHD/2012 ASSESSMENT YEAR 2005-2006 2. THE SOLE GROUND OF APPEAL TAKEN BY THE REVENUE I N THIS APPEAL IS THAT THE CIT (A) HAS ERRED IN DELETING THE LEVY OF PENAL TY OF RS.11,31,115/- U/S. 271(1)(C) OF THE ACT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING O FFICER IN AN ASSESSMENT MADE U/S.143(3) OF THE ACT, MADE ADDITION ON ACCOUN T OF LOW GROSS PROFIT OF RS.27,19,567/- AND PREPAID ADVERTISEMENT EXPENSES O F RS.3,71,548/- WHICH WAS CONFIRMED IN APPEAL BY THE CIT (A) VIDE ORDER D ATED 9-5-2008. 4. THEREAFTER, THE A.O. LEVIED PENALTY U/S. 271(1)( C) OF THE ACT ON THE ABOVE ADDITION OF RS.11,31,115/- BEING 100% OF THE TAX SOUGHT TO BE EVADED ON THE GROUND THAT THE ASSESSEE HAS FURNISHED INACC URATE PARTICULARS OF INCOME. 5. THE SAID LEVY OF PENALTY WAS DELETED ON APPEAL B Y THE CIT (A|) ON THE GROUND THAT THE PENALTY WAS LEVIED BY THE A.O. ONLY ON THE GROUND THAT THE AMOUNT OF ADDITION WAS CONFIRMED IN APPEAL BY THE C IT (A) WITHOUT BRINGING MATERIALS ON RECORD TO SHOW THAT THE ASSESSEE HAS C ONCEALED HIS INCOME OR HAS FURNISHED INACCURATE PARTICULARS OF INCOME. 6. THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE IN THE WRITTEN SUBMISSION DATED 4-5-2015 RECEIVED IN THE REGISTRY ON 7-5-2015 HAS FILED COPY OF THE ORDER OF THIS BENCH OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE IN QUANTUM APPEAL PASSED IN I.T.A. NO.2391/AHD/2008 & .A.NO.2693/AHD/2008 IN ASSESSMENT YEAR 2005-06 DATED 28-02-2013 AND SUB MITTED THAT THE ADDITION MADE ON ACCOUNT OF LOW GROSS PROFIT OF RS. 27,19,567/- AND RS.3,71,548/- ON ACCOUNT OF PREPAID ADVERTISEMENT E XPENSES WAS DELETED BY THE TRIBUNAL VIDE PARAGRAPH 6.4 AND 7.3 OF THE ABOV E ORDER OF THE TRIBUNAL. HENCE, AS THE VERY BASIS FOR WHICH THE PENALTY WAS LEVIED DOES NOT SURVIVE AFTER THE ORDER OF THE TRIBUNAL. THEREFORE, THE PEN ALTY ALSO DOES NOT SURVIVE. 7. THE DEPARTMENTAL REPRESENTATIVE ALSO VERY FAIRLY AGREED WITH THE ABOVE SUBMISSIONS MADE BY THE AUTHORISED REPRESENTA TIVE IN THE WRITTEN 3 ITA.NO. 143 /AHD/2012 ASSESSMENT YEAR 2005-2006 SUBMISSIONS FILED BY HIM DATED 4-5-2015. THEREFORE, WE CONFIRM THE ORDER OF THE CIT (A) AND DISMISS THE APPEAL OF THE REVENUE. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (S.S. GODARA) (N. S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD, THE 08TH DAY OF MAY, 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPON DENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT/DEPUTY REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD PATKI 1. DATE OF DICTATION . 08-05-2015 . (DICTATION-PAD PAGES ATTACHED AT THE END O F THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 8-5-2015 3. OTHER MEMBER 8-5-2015 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P .S./P.S 8-5-2015 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 8-5-2015 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S 8-5-2015 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8-5- 2015. 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER.. 10 DATE OF DESPATCH OF THE ORDER