The ACIT, Circle-9, Surat V. M/s. Trishul Motors, Surat

ITA 1636/AHD/2011

• Counselvise Citation: 163620514 RSA 2011
• Duration Of Justice: 4 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 16-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: TUSHAR P HEMANIAR

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ././ ./ ITA NO. 1636/AHD/2011 / ASSESSMENT YEAR: 2005-06 ACIT, CIRCLE-9, SURAT V/S. M/S TRISHUL MOTORS, CHANDRADEEP, OPP. SADHANA SOCIETY, VARACHHA ROAD, SURAT PAN : AABFT 4110 H / // / (APPELLANT) !' !' !' !' / // / (RESPONDENT) REVENUE BY : SMT. SONIA KUMAR, SR. DR. ASSESSEE(S) BY : SHRI TUSHAR P. HEMANI, AR #$ % &'/ // / DATE OF HEARING : 16/06/2015 () % &' / // / DATE OF PRONOUNCEMENT: 19/06/2015 *+ *+ *+ *+/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE REVENUE AND IS DIREC TED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS )-V, SURAT DATED 28.02.2011, PERTAINING TO ASSESSMENT YEAR 2005-06. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE REV ENUE IS AGAINST THE CANCELLATION OF PENALTY OF RS.34,22,632/- LEVIED BY THE ASSESSING OFFICER. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE ASSESSING OFFICER HAS LEVIED THE PEN ALTY IN RESPECT OF DISALLOWANCE OF SERVICE EXPENSES OF RS.11,34,942/- AND DISALLOWANCE OF VEHICLE DISCOUNT EXPENSES AMOUNTING TO RS.80,00,000 /-. ITA NO. 1636/AHD/2011 ACIT VS. M/S. TRISHUL MOTROS FOR AY 2005-06 2 4. ON APPEAL, THE ITAT, VIDE ITA NOS.244 & 537/AHD/ 2009, DELETED THE DISALLOWANCE OUT OF SERVICE EXPENSES. THE ISSUE OF VEHICLE DISCOUNT EXPENSES HAS BEEN SET ASIDE BY THE ITAT TO THE FILE OF THE A SSESSING OFFICER. THUS, AFTER THE ORDER OF THE ITAT, NONE OF THE ADDITIONS STAND, I.E., ONE ADDITION HAS BEEN DELETED AND ANOTHER HAS BEEN SET ASIDE. TH EREFORE, THE PENALTY LEVIED ON THE BASIS OF SUCH ADDITIONS CANNOT SURVIV E. ACCORDINGLY, WE UPHOLD THE ORDER OF THE CIT(A) CANCELLING THE PENAL TY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C). HOWEVER, WE OBSER VE THAT AFTER COMPLETING THE SET ASIDE ASSESSMENT, IF THE ASSESSING OFFICER AGAIN DISALLOWS THE VEHICLE DISCOUNT EXPENSES, HE WILL BE AT LIBERTY TO RE-INIT IATE THE PENALTY PROCEEDINGS IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 19/06/2015 BIJU T., PS *+ % !&, -*,& *+ % !&, -*,& *+ % !&, -*,& *+ % !&, -*,&/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. & #. / CONCERNED CIT 4. #. ( ) / THE CIT(A) 5. ,12 !& , , / DR, ITAT, AHMEDABAD 6. 2 4$ / GUARD FILE . *+# *+# *+# *+# / BY ORDER, TRUE COPY 5 55 5/ // / 6 6 6 6 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD