M/s. Devrekha Engineers Pvt. Ltd., Surat V. The CIT (A)- I, Surat

ITA 1596/AHD/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80374 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-09-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 20-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Reopening of assessment
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD (BEFORE SHRI G.C.GUPTA VICE PRESIDENT & SHRI ANIL CHATURVEDI , A.M.) I. T. A. NO. 1596 / AHD/ 20 1 4 (A SSESSMENT YEAR: 2005 - 06) M/S DEVREKHA ENGINEERS PVT. LTD. A - 2, 36/102, OPP. GIDC OFFICE, SACHIN, SURAT - 394230 V/S COMMISSIONER OF INCOME TAX (A) - I, SURAT (APPEL LANT) (RESPONDENT) PAN: AAACD 8341C APPELLANT BY : NONE (WRITTEN SUBMISSIONS) RESPONDENT BY : SHRI M. K. SINGH, SR. D.R. ( )/ ORDER DATE OF HEARING : 16 - 09 - 2014 DATE OF PRONOUNCEMENT : 19 - 0 9 - 2014 PER SHRI ANIL CHATURVEDI,A.M. 1. THIS APPEAL IS DIRECTED AGAINST THE PENALTY ORDER DATED 24.03.2014 PASSED UNDER SECTION 271(1)(C) WHEREIN PENALTY OF RS. 65,70,000/ - WAS LEVIED BY THE A.O. 2. ON THE DATE OF HEARING N ONE APPEARED ON BEHALF OF THE ASSESSE E BUT THE LD. A.R. HAD FILED WRITTEN SUBMISSIONS. WE THEREFORE PROCEED TO DECIDE THE MATTER EX PARTE QUA THE ASSESSEE ON THE BASIS OF MATERIAL ON RECORD AND THE WRITTEN SUBMISSIONS. ITA NO 1596/AHD/2014 . A.Y. 2005 - 06 2 3. IN THE PRESENT CASE PENALTY OF RS. 65,70,000/ - WA S LEVIED U/S 271(1)(C) BY THE A.O VIDE ORDER DATED 24.03.2014 FOR THE REASON THAT ACCORDING TO A.O THE ASSESSEE HAD WRONGLY CLAIMED LONG TERM CAPITAL. IN THE WRITTEN SUBMISSIONS SUBMITTED BEFORE US, ASSESSEE HAS SUBMITTED THAT IN THE QUANTUM PROCEEDINGS AG AINST THE ORDER DATED 25.06.2013 FOR A.Y. 05 - 06 OF CIT(A), ASS ESSEE HAD PREFERRED AP P E AL BEFORE HON BLE TRIBUNAL. HON BLE TRIBUNAL IN ITA NO. 2090/AHD/2013 ORDER DATED 27.03.2014 HELD THE RE - OPENING OF THE ASSESSMENT ITSELF TO BE BAD. IT WAS THEREFORE SUBM ITTED THAT SINCE THE ASSESSMENT ORDER ITSELF HAS BEEN QUASHED BY THE HON BLE TRIBUNAL, THE PENALT Y LEVIED ON THE ADDITIONS MADE DOES NOT SURVIVE AND THEREFORE THE PENALTY NEEDS TO BE DELETED. THE LD. D.R. RELIED O N THE ORDER OF A.O AND CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT WHILE FRAMING THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 VIDE ORDER DATED 29.12.2011, A.O. HAD MADE ADDITION OF RS. 59 LACS UNDER THE HEAD LONG CAPITAL GAINS AND ON THE AFO RESAID ADDITION , VIDE PENALTY ORDER DATED 24.03.2014 LEVIED PENALTY OF RS. 65,70,000/ - UNDER SECTION 271(1)(C ) OF THE ACT. A AGAINST THE ADDITION MADE BY A.O, ASSESSEE PREFERRED APPEAL BEFORE TRIBUNAL. TRIBUNAL VIDE ORDER DATED 27.03.2014, DECIDED THE APPEAL IN F AVOUR OF THE ASSESSEE BY HOLDING THE REOPENING OF ASSESSMENT ITSELF TO BE BAD IN LAW AND THUS THE ADDITION MADE BY THE A.O WERE DELETED. SINCE THE ADDITION ON WHICH THE PENALTY U/S. 271(1)(C) WAS LEVIED ITSELF HAS BEEN DELETED, WE ARE OF THE VIEW THAT ITA NO 1596/AHD/2014 . A.Y. 2005 - 06 3 NO P ENALTY ON THE AFORESAID DISALLOWANCE CAN BE MADE. WE THUS DIRECT ITS DELETION. THUS THIS GROUND OF ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 19 - 09 - 201 4 . SD/ - SD/ - (G.C.GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD. TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD