Heritage Board Pvt. Ltd., Ahmedabad V. The ACIT, Cent. Circle-1(3), Ahmedabad

ITA 1683/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0325 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 10-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANTONY PARIATH
• Assessee Lawyers: P M MEHTA; GM THAKOR
• Section: 143(3)

Judgement Text

I. T.A. NO . 1683 /AHD/201 3 A SSESSMENT Y EAR: 200 9 - 10 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] I.T.A. NO. 1683/A HD/ 20 1 3 ASSESSMENT Y EAR : 200 9 - 10 HERITAGE BOARD PVT. LTD., .... . ...... . ... . APPELLANT 306, ISCON MALL, STAR BAZAR, AHMEDABAD 380 015 [ PAN: A A ACH 5235 Q ] VS. A.C.I.T., CENTRAL CIRCLE 1(3), AHMEDABAD. ... ............ . RESPONDENT APPEARANCES BY: P.M. MEHTA & G.M. THAKOR , FOR THE APPELLANT ANTONY PARIATH, FOR THE RESPONDENT D ATE OF CONCLUD ING THE HEARING : 05 .0 7 .2016 DATE OF PRONOUNCING THE ORDER : 04 . 10 .2016 O R D E R 1. BY WAY OF THIS APPEAL, THE A SSESS EE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 2 2 ND APRIL, 2013, PASSED BY THE LEARNED CIT(A) , CONFIRMI NG THE PENALTY OF R.38,890/ - IMPOSED ON THE ASSESSEE UNDER SECTION 271AAA OF THE INCOME TAX ACT 1961 , FOR THE ASSESSMENT YEAR 200 9 - 10 . 2. GRIEVANCE OF THE ASSESSEE IS THAT THE LEARNED CIT(A) ERRED IN CONFIRMING THE IMPUGNED PENALTY. I. T.A. NO . 1683 /AHD/201 3 A SSESSMENT Y EAR: 200 9 - 10 PAGE 2 OF 3 3. THE ASSESSMENT FRA MED UNDER SECTION 143(3) R.W.S. 153A(1)(B) R.W.S. 153B(1)(B) WAS COMPLETED DETERMINING ASSESSED LOSS AT ( - ) RS.15,14,860/ - AND BOOK PROFIT UNDER SECTION 115 J B AT RS.8,40,113/ - . DURING THE COURSE OF THIS ASSESSMENT AN ADDITION OF RS.3,88,990/ - WAS MADE IN RESPECT OF DISCREPANCY IN STOCK A S FOUND DURING SEARCH PROCEEDINGS. IT WAS IN THIS BACKDROP THAT PENALTY UNDER SECTION 271AAA AMOUNTING TO RS.38,890/ - WAS IMPOSED ON THE ASSESSEE. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LEARNED CIT ( A ) BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE ME. 4. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 5. I HAVE NOTED THAT WHILE THE IMPUGNED PENALTY IS IMPOSED BY THE ASSESSING OFFICER UNDER SECTION 271AAA, LEARNED CI T(A) HAS NOTED ALL THE ARGUMENTS OF THE ASSESSEE AS TO WHY PENALTY COULD NOT HAVE BEEN IMPOSED, IN THE FACTS OF THIS CASE, UNDER SECTION 271AAA, PROCE EDED TO BRUSH THESE ARGUMENTS ASIDE AND CONFIRM THE PENALTY UNDER SE CTION 271(1)(C). CLEARLY, SUCH A COURSE OF ACTIO N, IS NOT PERMISSIBLE AND IT CANNOT MEET ANY JUDICIAL APPROVAL. IN ANY EVENT, AS POINTED OUT BY THE LEARNED COUNSEL, ONCE INCOME AS PER BO OKS IS NOT EVEN USED FOR ASSESSMENT, WHICH IS MADE ON INCOME COMPUTED UNDER SECTION 115JB, IT CEASES TO BE RELEVANT FOR COMPUTATION OF PENALTY ON CONCEALED INCOME. THE DECISION OF HON BLE DELHI HIGH COURT S DECISION IN THE CASE OF CIT VS . NALWA SONS INVES TMENTS L T D . [(201 0 ) 194 TAXMAN 387 (DELHI) HOLDS GOOD IN THIS CONTEXT AS WELL. ON THIS PROPOSITION, LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT HAVE MUCH TO SAY. I. T.A. NO . 1683 /AHD/201 3 A SSESSMENT Y EAR: 200 9 - 10 PAGE 3 OF 3 6. IN VIEW OF THE ABOVE DISCUSSIONS, I DELETE THE IMPUGNED PENALTY OF RS.38,890/ - . AS THE PE NALTY IS DELETED FOR THE ABOVE SHORT REASONS, I SEE NO NEED TO DEAL WITH OTHER ARGUMENTS OF THE ASSESSEE ON MERITS. 7 . IN THE RESULT, THE APPEAL IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 4 TH DAY OF OCTOBER , 2016. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 4 TH DAY OF OCTOBER , 2016. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY O RDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD