M/s. Ess Ess Engineering, Surat V. The ACIT.,Circle-3, Surat

ITA 1721/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80464 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 29-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI , ACCOUNTANT MEMBER ITA NO . 1 721 /AHD/20 1 1 A. Y. 200 5 - 0 6 M/S. ESS ESS ENGINEERING 90, SEEMANAGAR SOCIETY - II, PALANPUR PATIA, RANDE R ROAD, SURAT. PAN: AABFE 6746Q VS ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 3, SURAT. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI M.K. SINGH , SR. D.R. , ASSESSEE(S) BY : SHRI C HIRAG SHAH (WRITTEN SUBMISSION) / DATE OF HEARING : 2 6 / 0 9 /201 4 / DATE OF PRONOUNCEMENT: 31 / 10 /201 4 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN A PPEAL FILED BY THE ASSESSEE ARISING FROM THE ORDER OF T HE LD. CIT (APPEALS) - II, SURAT , DATED 1 8.05. 201 1 AND THE ONLY GROUND IS IN RESPECT OF CONFIRMATION OF PENALTY LEVIED U/S.271(1)(C) OF RS.2,75,614/. 2. AT THE OUTSET, THE A SSESSEE S C OUNSEL , MR. CHIRAG SHAH HAS PLACED ON RECORD WRITTEN SUBMISSION , RELEVA NT PORTION EXTRACTED BELOW: 1. THE APPEAL IS DIRECTED AGAINST THE ORDER OF CIT(A) DT. 18.05.2011 CONFIRMING PENALTY OF RS. 2,75,614/ - LEVIED BY ASSESSING OFFICER. 2. THE PENALTY HAS BEEN LEVIED IN RESPECT OF FOLLOWING TWO ADDITIONS MADE BY ASSESSING OFF ICER. A) DISALLOWANCE OF TRANSPORTATION EXPENSES BEING UNVERIFIABLE, AS DISCUSSED IN PARA 8 OF THE ASSESSMENT ORDER. B) DISALLOWANCE OF UNVER I FIABLE EXPENSES (PAYMENT MADE TO M/S SHEETAL TRAVELS) UNDER THE HEAD TRANSPORTATION EXPENSES, AS DISCUSSED IN PARA 8.1 OF THE ASSESSMENT ORDER. ITA NO.17 21/AHD/2011 M/S. ESS ESS ENGINEERING VS. ACIT, CIRCLE - 3, SURAT . FOR A.Y. 200 5 - 0 6 - 2 - 3. BOTH THE ADDITIONS WERE SET ASIDE TO THE FILE OF CIT(A) AS PER THEIR FINDINGS RECORDED AT PARA NO. 5.1 (PAGE NO. 9) OF THE ORDER OF HONOURABLE TRIBUNAL . IT IS TO BE NOTED THAT THE FRESH O R DER HAS NOT BEEN PASSED BY CIT(A) . 4. IN VIEW OF ABOVE, YOUR HONOUR IS REQUESTED TO SET ASIDE THE PENALTY ALSO FOR DECIDING AFRESH AFTER ID. CIT(A) PASS THE NEW ORDER CONSEQUENT UPON THE ORDER OF HONOURABLE TRIBUNAL. 3. WE HAVE PERUSED THE ORDER OF RESPECTED ITAT C BENCH AHMEDABAD B EARING ITA NOS.3736, 3659/AHD.2008 & 2147, 2161/AHD/2009 FOR A.Y.S. 2005 - 06 & 2006 - 07 PRONOUNCED IN THE CASE OF THIS ASSESSEE. RESPECTED CO - ORDINATE BENCH HAS RESTORED THE ISSUE VIDE PARAGRAPH 5.1 BACK TO THE FILE OF LEARNED CIT(A) WITH THE DIRECTION TO PA SS A SPEAKING ORDER. SINCE, THE QUANTUM ADDITION IS YET TO BE FINALIZED; THEREFORE, IN THE INTEREST OF NATURAL JUSTICE IT IS PROPER AND JUSTIFIABLE TO RESTORE THE QUESTION OF LEVY OF CONCEALMENT PENALTY ON THOSE QUANTUM ADDITIONS BACK TO THE FILE OF LEARNE D CIT(A) TO BE DECIDED AFRESH IN CONSEQUENCE OF THE DECISION TAKEN IN THE SAID QUANTUM APPEAL. IN VIEW OF THESE FACTS, WE HEREBY HOLD THAT THE GROUND RAISED MAY BE TREATED AS ALLOWED BUT FOR STATISTICAL PURPOSE ONLY. 4. IN THE RESULT, ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSE ONLY. SD/ - SD/ - ( N.S. SAINI ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31 / 10 / 20 1 4 PRABHAT KR. KESARWANI , SR. P . S . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III, AHMEDABAD ITA NO.17 21/AHD/2011 M/S. ESS ESS ENGINEERING VS. ACIT, CIRCLE - 3, SURAT . FOR A.Y. 200 5 - 0 6 - 3 - 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD