M/s White Cliff Tea Pvt. Ltd., Kolkata V. ACIT, CIR-4, KOLKATA, Kolkata

ITA 1776/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1805 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 10-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALLONG YADON
• Assessee Lawyers: MRS DIVYA AGARWALLA ACA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1776/KOL/2014 ASSESSMENT YEAR:2006-07 M/S WHITE CLIFF TEA PVT. LTD., A2, BALLYGUNGE PARK TOWER, 67B, BALLYGUNGE CIRCULAR ROAD, KOLKATA-700 019 [ PAN NO.AAACW 2211 L ] / V/S . ACIT, CIRCLE-4, KOLKATA /APPELLANT .. /RESPONDENT /BY APPELLANT MRS. DIVYA AGARWALLA, ACA /BY RESPONDENT SHRI SALLONG YADON, ADDL. CIT-DR /DATE OF HEARING 27-03-2017 /DATE OF PRONOUNCEMENT 03-05-2017 /O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-IV, KOLKATA DATED 03.07.2014. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE-4, KOLKATA U/S 143(3) OF THE INCOME TA X ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORDER DATED 19.12.2008 FO R ASSESSMENT YEAR 2006-07. THE PENALTY LEVIED BY ASSESSING OFFICER U/S271(1)(C) OF THE ACT VIDE HIS ORDER DATED 30.06.2009. MRS. DIVYA AGARWALLA, LD. AUTHORIZED REPRESENTATIVE APPEARED ON BEHALF OF ASSESSEE AND SHRI SALLONG YADON, LD. DEPARTMENTAL REPRESENTA TIVE REPRESENTED ON BEHALF OF REVENUE. ITA NO.1776/KOL/2014 A.Y. 2 006-07 M/S WHITE CLIFF TEA PVT. LTD. VS. ACIT, CIR-4 PAGE 2 2. THE ONLY EFFECTIVE ISSUE RAISED BY ASSESSEE IN T HIS APPEAL IS THAT LD. CIT(A) ERRED IN CONFIRMING THE PENALTY OF 9,27,047/- U/S 271(1)(C) OF THE ACT FOR WHICH ASSESSEE HAS RAISED FOLLOWING GROUNDS:- 1. THE ORDERS PASSED BY THE LOWER AUTHORITIES ARE ARBITRARY, UNREASONED, ERRONEOUS, INVALID AND BAD IN LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) ERRED IN HOLDING THAT THE APPELLANT ASSESSEE WAS NOT INTE RESTED IN PURSUING THE APPEAL AND IN THAT VIEW, IN DISMISSING THE APPEAL. 3. WITHOUT ANY PREJUDICE TO ABOVE, THE LEARNED CIT( A) ERRED IN DISMISSING THE APPEAL IN LIMINE AND NOT ON MERITS. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY OF RS.9,27,047/- U/S. 271(1)(C) OF THE INCOME- TAX ACT, 1961 ON THE ALLEGED UNDISCLOSED INCOME OF RS.32,71,858/-. 5. THE APPELLANT CRAVES LEAVE TO AMEND, ALTER, MODI FY, SUBSTITUTE, ADD TO, ABRIDGE AND/OR RESCIND ANY OR ALL OF THE ABOVE GROU NDS. 3. BRIEFLY STATED FACTS ARE THAT ASSESSEE IS A PRIV ATE LIMITED COMPANY DERIVING ITS INCOME FROM BUSINESS. DURING THE COURSE OF ASSESSME NT PROCEEDINGS, AO OBSERVED THAT TOTAL RECEIPT AS PER ITS IS 2,68,97,134/- WHEREAS ASSESSEE HAS DISCLOSED RECEIP T OF 2,36,25,276/- ONLY. AS A RESULT, AO OBSERVED A DIFF ERENCE OF 32,71,858/- WHICH WAS ADDED TO THE TOTAL INCOME OF ASSESSEE VIDE HIS ASSE SSMENT ORDER DATED 19.12.2008. THE AO IN HIS ASSESSMENT ORDER INITIATED PENALTY PROCEE DINGS U/S. 271(1)(C) OF THE ACT WHICH WAS CONFIRMED BY LD. CIT(A) VIDE ORDER DATED 30.06.2009. AT THE OUTSET, IT WAS OBSERVED THAT ASSESSEE AGAINST THE AFORESAID QUANTU M ADDITION PREFERRED AN APPEAL BEFORE LD. CIT(A) WHO DELETED THE ADDITION MADE BY AO VIDE HIS ORDER DATED 29.12.2014 IN APPEAL NO.225/CIT(A)-2/06-07/14-15 A COPY OF SAID ORDER IS PLACED ON RECORD. 4. AT THE TIME OF HEARING LD. AR SUBMITTED THAT AGA INST THE AFORESAID DELETION OF QUANTUM ADDITION BY LD. CIT(A) THE DEPARTMENT HAS N OT PREFERRED ANY APPEAL TO HIGHER FORUM. IN REJOINDER, LD. DR HAS NOT BROUGHT ANYTHING ON RECORD CONTRARY TO THE ARGUMENT PLACED BY LD. AR BEFORE US AND RELIED ON T HE ORDER OF AO. ITA NO.1776/KOL/2014 A.Y. 2 006-07 M/S WHITE CLIFF TEA PVT. LTD. VS. ACIT, CIR-4 PAGE 3 5. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF RECORDS, WE ARE IN AGREEMENT WITH THE ARGUMENT OF LD. AR OF ASSESSEE. THEREFORE, WE ARE OF THE VIEW ONCE THE QUANTUM ADDITION HAS BEEN DELETED BY LD. CIT(A) THE N THE QUESTION OF PENALTY DOES NOT ARISE. IN HOLDING SO, WE FIND SUPPORT AND GUIDA NCE FROM THE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. MONDAL REPORTED IN 176 ITR 189 (CAL) AND RESPECTFULLY FOLLOWING THE JUDGMENT OF HO N'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF ASSESSEE WE DELETE THE PENALTY. ACCORDI NGLY, THE AO IS DIRECTED. HENCE, THIS GROUND OF ASSESSEES APPEAL IS ALLOWED. 6. IN THE RESULT, ASSESSEES APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 03/05/2017 SD/- SD/- (S.S.VISWANETHRA RAVI) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER *DKP, SR.P.S ! - 03/05/2017 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S WHITE CLIFF TEA PVT. LTD. A2, BALLYG UNGE PARK TOWER, 67B , BALLYGUNGE CICULAR ROAD, KOLKTA-19 2. /RESPONDENT-ACIT, CIRCLE-4, KOLKATA 3. '# % / CONCERNED CIT 4. % - / CIT (A) 5. &'( ))'# , '# / DR, ITAT, KOLKATA 6. (*+ / GUARD FILE. BY ORDER/ , /TRUE COPY/ / '#,