The DCIT, Circle-4(1) (1), Ahmedabad V. M/s. Shah Foils Pvt. Ltd., Ahmedabad

ITA 1797/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8314 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 31-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K C THAKER
• Section: 271(1)(c)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NOS. 1796 & 1797/AHD/2017 ( ASSESSMENT YEARS : 2005-06 & 2006-07) D.C.I.T. CIRCLE-4(1)(1), AHMEDABAD / VS. SHAH FOILS PVT. LTD. 26, BLOCK-B, GALAXY SIGNATURE, SCIENCE CITY ROAD, SOLA, AHMEDABAD ./ ./ PAN/GIR NO. : AAICS0490F ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR. DR / RESPONDENT BY : SHRI K. C. THAKER, A.R. DATE OF HEARING 01/04/2019 !'# / DATE OF PRONOUNCEMENT 10/04/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE ORDERS OF THE COMMISSIONER OF I NCOME TAX (APPEALS)-8, AHMEDABAD (CIT(A) IN SHORT), DATED 2 2.05.2017 ARISING IN THE PENALTY ORDER DATED 25.03.2015 PASSE D BY THE ASSESSING OFFICER (AO) UNDER S. 271(1)(C) OF THE IN COME TAX ACT, 1961 (THE ACT) IN BOTH CONCERNING AYS. 2005-06 & 20 06-07. ITA NOS.1796 & 1797/AHD/17 [D.C.I.T. VS. SHAH FOILS PVT. LTD.] A.Y. 2005-06 & 2006-07 - 2 - 2. IN BOTH THE APPEALS, THE REVENUE HAS CHALLENGED THE ACTION OF THE CIT(A) IN DELETING PENALTY OF RS.25,51,499/- AND RS.1,75,58,793/- FOR AYS. 2005-06 & 2006-07 RESPECT IVELY UNDER S. 271(1)(C) OF THE ACT WHICH WAS REVERSED BY THE C IT(A). 3. WHEN THE MATTER WAS CALLED FOR HEARING, BEFORE T HE TRIBUNAL, THE LEARNED AR FOR THE ASSESSEE SUBMITTED AT THE OU TSET THAT THE QUANTUM ADDITIONS GIVING RISE TO THE IMPUGNED PENAL TY HAS BEEN DELETED BY THE CO-ORDINATE BENCH IN ITA NO. 300/AHD /2013 PERTAINING TO AY 2005-06. IT WAS FURTHER SUBMITTED THAT THE AFORESAID ORDER OF THE ITAT WAS CHALLENGED BY THE R EVENUE BEFORE THE HONBLE GUJARAT HIGH COURT UNDER S.260A OF THE ACT AND THE HONBLE GUJARAT HIGH COURT WAS PLEASED TO DISMISS T HE APPEAL OF THE REVENUE IN TAX APPEAL NO. 993 OF 2017, JUDGMENT DATED07.02.2018. THE LEARNED AR SUBMITTED THAT THE ADDITIONS IN 2005-06 & 2006-07 ARE IDENTICAL AND THEREFORE WHERE THE VERY BASIS OF IMPOSITION OF PENALTY DOES NOT SURVIVE. T HE PENALTY UNDER S.271(1)(C) OF THE ACT CANNOT BE NATURALLY FO LLOW. 4. THE LEARNED DR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF THE AO BUT COULD NOT CONTROVERT THE AVERMENTS MADE ON BEHALF OF THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. IN VIEW OF THE FACT THAT THE QUANTUM ADDITIONS/DISALLOWANCES ITSELF DOE S NOT SURVIVE AND CEASES TO EXIST HAVING REGARD TO THE APPELLATE ORDER OF THE ITAT IN QUANTUM PROCEEDINGS. THE VERY BASIS FOR IM POSITION OF PENALTY UNDER S. 271(1)(C) DOES NOT SURVIVE ANY MOR E. THEREFORE, ITA NOS.1796 & 1797/AHD/17 [D.C.I.T. VS. SHAH FOILS PVT. LTD.] A.Y. 2005-06 & 2006-07 - 3 - THE ACTION OF THE AO TOWARDS IMPOSING PENALTY IS SE T ASIDE AND CANCELLED. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 10/04/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 10/04/2019