Assistant Commissioner of Income-tax, V. Holdn Medical Laboratories Pvt. Ltd., Nashik

ITA 1798/PUN/2013

• Counselvise Citation: 179824514 RSA 2013
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.1798/PN/2013 (A.YS:2005-06) ACIT, CIRCLE-2, NASHIK APPELLANT VS. HOLDEN MEDICAL LABORATORIES PVT. LTD., CIT(A)-35, MIDC, MALEGAON, SINNAR, NASHIK 422103 PAN: AABCH2172G RESPONDENT APPELLANT BY : SHRI RAJESH DAMOR RESPONDENT BY : NONE DATE OF HEARING : 22.09.2014 DATE OF PRONOUNCEMENT : 23.09.2014 ORDER PER SHAILENDRA KUMAR YADAV : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, NASHIK DATE D 18.07.2013 FOR A.Y. 2005-06 ON THE FOLLOWING GROUNDS. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A)-I, NASHIK WAS JUSTIFIED IN DELETING THE PENALTY OF RS.9,85,200/- U/S 271(1)(C) OF THE INCOME TAX AC T, 1961. 2. THE APPELLANT PRAYS THE ORDER OF THE ASSESSING OFFI CER MAY BE RESTORED. 3. THE APPELLANT PRAYS TO ADDUCE SUCH FURTHER EVIDENCE TO SUBSTANTIATE HIS CASE. 4. THE APPELLANT PRAYS LEAVE TO ADD, ALTER, CLARIFY, A MEND AND OR WITHDRAW ANY GROUNDS OF APPEAL AS AND WHEN THE OCCASION DEMANDS. ITA NO.1798/PN/13 HOLDEN MEDICAL LABORATORIES PVT. LTD. 2. THE ASSESSEE IS A PRIVATE LIMITED COMPANY AND EN GAGED IN THE MANUFACTURING OF PHARMACEUTICAL TABLETS. THE A SSESSEE FILED A RETURN OF INCOME DECLARING TOTAL INCOME OF RS.29,68 ,140/- ON 28.10.2005. THE ASSESSING OFFICER HAS LEVIED PENAL TY U/S.271(1)(C) OF THE ACT ON 26,92,359/- WHICH THE ASSESSING OFFIC ER HAD DISALLOWED U/S 40(A)(IA) OF THE ACT UNDER VARIOUS H EADS SUCH AS PURCHASE COMMISSION, AIR FREIGHT, LABOUR CHARGES, C ONSULTANCY FEE AND PART OF LAB TESTING AND ANALYSIS CHARGES. THE ASSESSING OFFICER IMPOSED PENALTY OF RS.9,85,200/- ON THE CONCEALED I NCOME OF RS.26,92,359/-. 2.1 THE MATTER WAS CARRIED BEFORE FIRST APPELLATE A UTHORITY, WHEREIN THE VARIOUS CONTENTIONS WERE RAISED ON BEHA LF OF THE ASSESSEE AND HAVING CONSIDERED THE SAME, THE CIT(A) HAS GRANTED RELIEF TO THE ASSESSEE. THE SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF THE REVENUE, INTER ALIA, HAS SUBMITTED TH AT THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE PENALTY OF RS.9,85,20 0/- U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. ACCORDINGLY, THE ORDE R OF CIT(A) BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTORED . ON THE OTHER HAND, NONE APPEARED ON BEHALF OF THE ASSESSEE. SO, THE MATTER IS BEING DECIDED EXPARTE. 2.2 AFTER GOING THROUGH THE ARGUMENTS OF LEARNED DE PARTMENTAL REPRESENTATIVE AND MATERIAL ON RECORD, WE FIND THAT THE ASSESSING OFFICER HAS LEVIED PENALTY U/S 271(L)(C) OF THE ACT ON RS.26,92,359/- WHICH THE ASSESSING OFFICER HAD DISALLOWED U/S 40(A )(IA) OF THE ACT UNDER VARIOUS HEADS SUCH AS PURCHASE COMMISSION, AI R FREIGHT, LABOUR CHARGES, CONSULTANCY FEE AND PART OF LAB TES TING AND ANALYSIS CHARGES. THE CIT(A) HAD OBSERVED FROM THE RECORDS THAT THE ITAT, PUNE HAD DELETED THE ADDITION OF RS.39,94 ,348/- MADE BY THE ASSESSING OFFICER U/S 40(A)(IA) OF THE ACT IN R ESPECT OF PAYMENTS FOR LAB TESTING AND ANALYSIS CHARGES. SINCE THE AS SESSEE HAD FURNISHED ALL SUCH DETAILS OF PAYMENTS IN THE RETUR N OF INCOME ITA NO.1798/PN/13 HOLDEN MEDICAL LABORATORIES PVT. LTD. BEFORE THE CIT(A), THE CIT(A) DID NOT FIND ANY CONC EALMENT OF FACTS AT THE END OF THE ASSESSEE IN FURNISHING THE PARTIC ULARS OF INCOME. SINCE DISALLOWANCE IS MERELY TECHNICAL IN NATURE, T HE CIT(A) FOUND THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN LEV YING PENALTY OF RS.9,85,200/- ON THE AMOUNT OF RS.26,92,359/- IN VI EW OF THE HONBLE SUPREME COURTS DECISION IN THE CASE OF CIT VS. RELIANCE PETROPRODUCTS (P) LTD. (2010) 322 ITR 158 (SC). AC CORDING TO US, THE CIT(A) HAS RIGHTLY DELETED THE IMPUGNED PENALTY OF RS.9,85,200/- LEVIED BY THE ASSESSING OFFICER AS D ISCUSSED ABOVE. THIS REASONED FACTUAL AND LEGAL FINDING OF CIT(A) N EEDS NO INTERFERENCE FROM OUR SIDE. WE UPHOLD THE SAME. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 23 RD DAY OF SEPTEMBER, 2014. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 23 RD SEPTEMBER, 2014 GCVSR COPY TO:- 1) THE DEPARTMENT 2) ASSESSEE 3) THE CIT(A)-I, NASHIK 4) THE CIT-I, NASHIK 5) THE DR, A BENCH, I.T.A.T., PUNE. 6) GUARD FILE BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, PUNE.