M/s. R.K. Industries , Burdwan V. ACIT, Circle - 2, Burdwan , Burdwan

ITA 1462/KOL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0933 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PER
• Assessee Lawyers: AGAINST DATED PASSED
• Section: 271(1)(c); 40A(3)

Judgement Text

ITA NO.1462/KOL/2018 (ASSESSMENT YEAR-2011-12) IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA BEFORE SH. J.SUDHAKAR REDDY, ACCOUNTANT MEMBER & SH. S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1462/KOL/2018 (ASSESSMENT YEAR-2011-12) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 23.05.2018 PASSED BY CIT(A), BURDWAN FOR AY 2011-12. 2. HEARD BOTH PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTED FROM THE RECORD THAT THE ASSESSEE FILED APPEAL BEFORE THE TRIBUNAL CHALLENGING THE ACTION OF THE CIT(A) IN UPHOLDING THE DISALLOWANCE U/S 40A(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) DELAYING THE PAYMENT OF PROVIDENT FUND AND UNDISCLOSED INCOME. THIS TRIBUNAL VIDE ITS ORDER DATED 24.10.2018 ALLOWED THE APPEAL OF THE ASSESSEE PARTLY. IT IS OBSERVED FROM THE ORDER IMPOSING PENALTY U/S 271(1)(C) OF THE ACT BY THE AO, THAT THE PENALTY PROCEEDINGS INITIATED FOR NOT DISCLOSING OF CORRESPONDING INCOME RECEIVED FROM FOOD CORPORATION OF INDIA (IN SHORT FCI). AS DISCUSSED ABOVE, THE SAID ADDITION WAS DELETED BY THIS TRIBUNAL VIDE ITS ORDER DATED 1 M/S. R.K.INDUSTRIES, LICHUTALA, P.O.-NIBHUJIBAZAR, PS.-KALNA, DIST.-BURDWAN, PIN-713434. PAN-AADFR2831B VS ACIT, CIRCLE-2, BURDWAN. (APPELLANT) (RESPONDENT) APPELLANT BY SH.K.M.ROY, FCA RESPONDENT BY SH. SANKAR HALDER, SR.DR DATE OF HEARING 06.11.2018 DATE OF PRONOUNCEMENT 22.11.2018 ITA NO.1462/KOL/2018 (ASSESSMENT YEAR-2011-12) 24.10.2018 VIDE ITS PARA 3. THEREFORE, IN OUR OPINION, WHEN THE QUANTUM WAS DELETED BY THIS TRIBUNAL AND PENALTY IMPOSED ON THE SAME ISSUE DOES NOT STAND AND NO ORDER CONTRARY BROUGHT ON RECORD BY THE LD.DR. IN SUCH CIRCUMSTANCES, IN OUR OPINION, THE PENALTY IMPOSED BY THE AO DOES NOT STAND FOR SCRUTINY. THEREFORE, THE PENALTY OF RS.60,000/- IS CANCELLED AND THE ORDER OF CIT(A) IS SET ASIDE. ACCORDINGLY, GROUNDS NO.1 & 2 RAISED BY THE ASSESSEE ARE ALLOWED. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.11.2018. SD/- SD/- (J.SUDHAKAR REDDY) (S.S.VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE:- 22.11.2018 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT- M/S. R.K.INDUSTRIES, LICHUTALA, P.O.-NIBHUJIBAZAR, PS.- KALNA, DIST.-BURDWAN-713434. 2. RESPONDENT- ACIT, CIRCLE-2, BURDWAN. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES AR/H.O.O ITAT, KOLKATA 2