Ethio Plastics Pvt. Ltd., Vadodara V. The Asstt. Commissioner of Income Tax, Circle-1(1)(2), Vadodara

ITA 1447/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6017 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 31-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 1447/AHD/2016 (ASSESSMENT YEAR: 2010-11) ETHIO PLASTICS PVT. LTD. 61, KUNJ SOCIETY, ALKAPURI, VADODARA-390007 V/S ACIT, CIRCLE-(1)(1)(2), VADODARA (APPELLANT) (RESPONDENT) PAN: AAACE 4587D APPELLANT BY : MS. URVASHI SHODHAN, AR RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 27 -02-201 8 DATE OF PRONOUNCEMENT : 28-02-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-I, BARODA DATED 27.01.2014 PERTAINING TO A.Y. 2010-11. ITA NO. 1447 /AHD/2016 . A.Y. 2010-11 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY OF RS. 5,41,000/- U/S. 271(1)(C ) OF THE ACT. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSESSE E POINTED OUT THAT THE PENALTY HAS BEEN LEVIED ON THE DISALLOWANCE MADE U/S. 14A O F THE ACT AMOUNTING TO RS. 17.50 LACS. THE LD. COUNSEL POINTED OUT THAT TH E DISALLOWANCE SO MADE WAS DELETED BY THE TRIBUNAL VIDE ORDER DATED 02.08.2017 . 4. THE LD. D.R. FAIRLY CONCEDED TO THIS. 5. WE HAVE CONSIDERED THE ORDERS OF THE AUTHORITIES BE LOW AND ALSO THE ORDER OF THE CO-ORDINATE BENCH IN ITA NO. 1031/AHD/2014. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. THE DISALLOWANCE OF RS. 17.50 LACS MADE U/S. 14 OF THE ACT WAS DELETED BY THE TRIBUNAL AND THE RELE VANT FINDINGS READ AS UNDER:- 7. FROM GOING THROUGH THE ABOVE DECISION AND FARTH ER REVENUE BEING UNABLE TO DIFFERENTIATE THE FACTS, WE IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE ARE OF THE VIEW THAT NO DISALLOWANCE WAS CALLED FOR U/S, 1 4 A OF THE ACT AS THE ASSESSEE IS CONSISTENTLY INTO THE BUSINESS OF SHARE TRADING AND EARNING OF DIVIDEND INCOME WAS MERELY INCIDENTAL IN NATURE. WE THEREFORE DELET E THE IMPUGNED DISALLOWANCE U/S. 14A OF THE ACT AT RS. 17,55,855/-. 6. SUBLATO FUNDAMENTO CADIT OPUS- WHEN THE FOUNDATIO N IS REMOVED, THE SUPER STRUCTURE MUST FALL. APPEAL ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 28 - 02- 2 018 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY AC COUNTANT MEMBER AHMEDABAD: DATED 28 /02/2018