The DCIT(OSD)Range-1, Ahmedabad V. Ahmedabad Steel Craft Ltd., Ahmedabad

ITA 1600/AHD/2011

• Counselvise Citation: 160020514 RSA 2011
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 09-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI D.K.TYAGI, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO. 1600/ AHD/2011 (ASSESSMENT YEAR 2004-05) DIT, (OSD), RANGE I, AHMEDABAD VS. AHMEDABAD STEEL CRAFT LTD., 205/206, ABHIJIT, NR. MITHAKHALI SIX ROAD, NAVRANGPURA, AHMEDABAD PAN/GIR NO. : AACCCA3036B (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI VINOD TANWANI. SR. DR RESPONDENT BY: SHRI SURESH GANDHI, AR DATE OF HEARING: 16.09.2011 DATE OF PRONOUNCEMENT: 23.09.2011 O R D E R PER SHRI A. K. GARODIA, AM:- THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R OF LD. CIT(A) VI, AHMEDABAD DATED 04.04.2011 FOR THE ASSESSMENT Y EAR 2004-05. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DEL EING THE PENALTY OF RS.5,01,355/- LEVIED U/S 271(1)(C) OF TH E INCOME TAX ACT, 1961. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A.O. T O THE EXTENT MENTIONED ABOVE, SINCE THE ASSESSEE HAS FAILED TO D ISCLOSE HIS TRUE INCOME. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE A.O. BE RESTORED. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GRO UND WHICH MAY BE NECESSARY. I.T.A.NO.1600 /AHD/2011 2 3. THE LD. D.R. OF THE REVENUE SUPPORTED THE PENALT Y ORDER WHEREAS, THE LD. A.R. OF THE ASSESSEE SUPPORTED THE ORDER OF LD. CIT(A). IT IS ALSO SUBMITTED BY HIM THAT IN QUANTUM APPEAL, BOTH THE I SSUES REGARDING DISALLOWANCE OF DEDUCTION U/S 80HHC OF THE INCOME T AX ACT, 1961 OF RS.13,64,232/- AND DISALLOWANCE OF RS.2,707/- OF SH ORT TERM CAPITAL LOSS BY INVOKING THE PROVISIONS OF SECTION 94(7) WERE RE STORED BACK BY THE TRIBUNAL TO THE FILE OF A.O. FOR A FRESH DECISION I N I.T.A.NO. 3563 AND 3813/AHD/2007 DATED 26.11.2010 AND HE SUBMITTED A C OPY OF THIS TRIBUNAL ORDER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF AUTHORIT IES BELOW AND THE TRIBUNAL DECISION IN QUANTUM PROCEEDINGS OF THE ASS ESSEE FOR THIS VERY YEAR. WE FIND THAT THE PENALTY HAS BEEN IMPOSED BY THE A.O. IN RESPECT OF DISALLOWANCE MADE BY THE A.O. OF THE DEDUCTION CLAI MED BY THE ASSESSEE U/S 80HHC AND ALSO IN RESPECT OF DISALLOWANCE OF SH ORT TERM CAPITAL LOSS OF RS.2,707/-, WHICH WAS MADE BY THE A.O. BY INVOKI NG THE PROVISIONS OF SECTION 94(7) OF THE INCOME TAX ACT, 1961. IN THE QUANTUM PROCEEDINGS THE DISALLOWANCE OF THE ASSESSEES CLAIM FOR DEDUCT ION U/S 80HHC HAD BEEN RESTORED BACK BY THIS TRIBUNAL TO THE FILE OF THE A.O. FOR A FRESH DECISION BY FOLLOWING ANOTHER TRIBUNAL DECISION IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2002-03 AND 2003-04. HENCE, T HE PENALTY WITH REGARD TO THIS DISALLOWANCE HAS TO BE DECIDED AFRES H AFTER ASCERTAINING THE FINAL DECISION ON THIS ISSUE IN QUANTUM PROCEEDINGS , WHICH HAS BEEN RESTORED BACK BY THE TRIBUNAL TO THE FILE OF A.O. F OR A FRESH DECISION. IT WAS SUBMITTED BY THE LD. A.R. THAT THE SAME IS STIL L PENDING. THE PENALTY WITH REGARD TO DISALLOWANCE OF SHORT TERM CAPITAL L OSS OF RS.2,707/- IS VERY SMALL AND HENCE, WE FEEL THAT IN THE FACTS OF THE P RESENT CASE, THE ENTIRE PENALTY MATTER SHOULD GO BACK TO THE FILE THE LD. C IT(A) FOR A FRESH DECISION AFTER ASCERTAINING THE FINAL POSITION IN Q UANTUM PROCEEDINGS. I.T.A.NO.1600 /AHD/2011 3 WITH THESE OBSERVATIONS, WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF CIT(A) FOR A FRESH DECIS ION AS DISCUSSED ABOVE. 5. IN THE RESULT, APPEAL OF THE REVENUE STANDS ALLO WED FOR STATISTICAL PURPOSES. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEP., 2011. SD./- SD./- (D.K. TYAGI) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED : 23.09. 2011 SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT, AHMEDABAD 1. DATE OF DICTATION 20/9 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21/9 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 22/9 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 23/9 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.23/9 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23/09/2011 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. ..