Assistant Commissioner Of Income Tax, Jabalpur V. M/s Shrimal Construction Pvt. Ltd., Jabalpur

ITA 166/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1061 (ITAT-JABALPUR)
• Duration Of Justice: 6 year(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 20-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 20-05-2013
• Court: TRIBUNAL
• Department Lawyers: D R LAKHORIYA
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T.A.NO. 166/JAB/2013 A.Y. : 2008-09 ACIT, CIRCLE 1(1), JABALPUR VS M/S.SHRIMAL CONSTRUCTION PVT.LTD., A-103, KANHA VERTICAL, GOPAL VIHAR, GOPAL BAGH, JABALPUR APPELLANT RESPONDENT PAN NO. : AAGCS3760G DEPARTMENT BY : SHRI D. R. LAKHORIYA, DR ASSESSEE BY : SHRI SUMIT NEMA, ADV. DATE OF HEARING : 20 . 0 5 .201 5 DATE OF PRONOUNCEMENT : 30 . 0 7 .201 5 -: 2: - 2 O R D E R PER GARASIA, J.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-I, JABALPUR, DATED 05.11.2012 FOR THE AS SESSMENT YEAR 2008-09. 2. THE A.O. DURING THE COURSE OF ASSESSMENT PROCEEDING S INITIATED PENALTY ON THE ISSUE OF JOB WORK CARRIED OUT BY THE ASSESSEE FOR M/S. BENANI CEMENT LIMITED. HOWEVER, D URING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS REVEAL ED THAT THE ASSESSEE HAD NOT CARRIED OUT ANY WORK AND IT WAS A CASE OF SIPHONING OFF OF PROFIT BY BENANI CEMENT TO THE ASS ESSEE AND THE ASSESSEE HAS NOT CARRIED OUT ANY BUSINESS. THER EFORE, THE PENALTY U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961, WAS IMPOSED. 3. THE MATTER CARRIED TO LD. CIT(A). THE LD. CIT(A) HA S DELETED THE PENALTY BY OBSERVING AS UNDER :- 2.2 VIDE SUBMISSION DATED 5.11.2012, IT WAS CONTENDED THAT ORDER U/S 143(3) WAS PASSED ON -: 3: - 3 31.12.2010 AND ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER ON THE BASIS OF WHICH PENALTY PROCEEDINGS U/S 271(1)(C) HAD BEEN INITIATED, PASSED THE PENALTY ORDER AND IMPOSED PENALTY OF RS. 15,41,02,500/- AGAINST THE ASSESSEE. THAT AGAINST THE ORDER U/S 143(3) THE APPELLANT FILED AN APPEAL BEFORE THE CIT(A) JABALPUR WHICH HAS BEEN DECIDED ON 19.12.2011 IN FAVOUR OF THE APPELLANT. ENCLOSING THE APPELLATE ORDER, IT WAS REQUESTED TO CANCEL THE PENALTY ORDER U/S 271(1)(C). DECISION ( GROUND NO.1 ): I HAVE PERUSED THE MATERIAL ON RECORD AND THE SUBMISSION OF THE COUNSEL CAREFULLY. SINCE THE QUANTUM ADDITION STANDS DELETED VIDE CIT(A)S ORDER NO.J/CIT(A)- I/ACIT/CIR.1(1)/JBP/574-575/11-12 DATED 19.12.2011, THE BASIS OF IMPOSITION OF PENALTY DOES NOT SURVIVE. HENCE, THE PENALTY LEVIED IS DIRECTED TO BE DELETED. SINCE THE PENALTY STANDS DELETED ON THE BASIS MENTIONED ABOVE, NO ADJUDICATION THEREOF IS REQUIRED ON MERIT. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. DURING THE COURSE OF HEARING, WE FIND THA T THE ISSUE IN CONTROVERSY IS COVERED BY THE DECISION OF HON'BL E SUPREME -: 4: - 4 COURT IN THE CASE OF RELIANCE PETROCHEMICALS,322 IT R 158. MOREOVER, THE LD. CIT(A) HAS ALSO DELETED THE SAME ADDITION AND THE TRIBUNAL HAD CONFIRMED THE ORDER OF CIT(A) IN I.T.A.NO. 81/JAB/12. THEREFORE, THE ADDITION IS DELETED. THE LD. CIT(A) IS JUSTIFIED IN DELETING THE PENALTY. 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED. THIS ORDER IS PRONOUNCED IN ACCORDANCE WITH RULE 34 (4) OF I.T.A.T. RULES, BY PUTTING THE COPY OF THE SAME ON NOTICE BOARD ON 30 TH JULY, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 30 TH JULY, 2015. CPU* 13.30