Cotton Care Exports Pvt. Ltd., Ludhiana V. JCIT, R-III, Ludhiana

ITA 1544/CHANDI/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5157 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 09-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1544/CHD/2017 / ASSESSMENT YEAR : 2006-07 M/S COTTON CARE EXPORTS PVT. LTD., 2,BAL SINGH NAGAR, RAHON ROAD, LUDHIANA THE JCIT, RANGE-III, LUDHIANA ./PAN NO: AABCC4099H / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI VIBHOR GARG, ADVOCATE ' ! / REVENUE BY : SMT.CHANDERKANTA, SR.DR # $ % /DATE OF HEARING : 08.10.2018 &'() % / DATE OF PRONOUNCEMENT : 08.10. 2018 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 10.08.2017 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-1 , LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)] AGITAT ING THE LEVY / CONFIRMATION OF THE PENALTY U/S 271D OF THE INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF PENALTY DATED 28.3.2014 OF THE ASSESSING OFFICER. THE FACTS POINTED OUT BY THE ASSESSING OFFICER ARE THAT ASSESSEE COMPANY HAD PAID AN AMOUNT OF RS. 4 LACS IN CASH TO MRS. R ITU LUTHRA ON BEHALF OF ITS DIRECTOR MR. PAWAN MODGILL AND FURTHER THE SAID MR. PAWAN MODGILL HAS ITA NO.1544 CHD/2017- M/S COTTON CARE EXPORTS LTD. LUDHIANA 2 RECEIVED BACK THE SAID AMOUNT DIRECTLY FROM MRS. RI TU LUTHRA. THE FURTHER ALLEGATION IS THAT THE ASSESSEE COMPANY HAD PAID AN AMOUNT OF RS. 1,19,493/- TO ONE MRS KAJAL MODGILL W/O SHRI PAWAN MODGILL IN CASH. HOWEVER, THE LD. COUNSEL FOR THE ASSESSEE HAS RELI ED UPON THE COPY OF THE STATEMENT OF THE LEDGER ACCOUNT RECONSTRUCTED FROM THE BANK STATEMENT TO SHOW THAT THE SAID AMOUNT WAS NOT PAID IN CASH, R ATHER, IT WAS PAID BY WAY OF TRANSFER IN THE ACCOUNT OF THE MRS KAJAL MOD GILL ON ACCOUNT OF SALARY. WHETHER THE AMOUNT IN CASH WAS PAID BY TH E COMPANY TO MRS KAJAL MODGILL OR BY THE COMPANY TO MRS RITU LUTHRA, IN BO TH THE CASES, NEITHER THERE IS ANY VIOLATION OF THE PROVISIONS OF SECTIO N 269T OF THE ACT NOR OF SECTION 269SS OF THE ACT. IN ANY OF THE CIRCUMSTANCES, THE PENALTY U/S 271D O F THE ACT IS NOT LEVIABLE IN THIS CASE. ACCORDINGLY, THE PENALTY LEV IED BY THE LOWER AUTHORITIES IS HEREBY IS SET-ASIDE. THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 08.10.2018. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 08.10.2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR ITA NO.1544 CHD/2017- M/S COTTON CARE EXPORTS LTD. LUDHIANA 3