Kanak Castor Products (P)Ltd., Ahmedabad V. The Income tax Officer,Ward-4(2), Ahmedabad

ITA 1810/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1331 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 16-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Section: 143(3); 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER KANAK CASTOR PRODUCTS PVT. LTD. DARSHAK , 14/A, SWASTIK SOCIETY, NAVRANGPURA - 380009, PAN: AAACK6280B (APPELLANT) VS THE ITO, WARD - 4(2), AHMEDABAD (RESPONDENT) REVENUE BY : S H RI P.L. KUREEL , SR. D . R. ASSESSEE BY: S MT. URVASHI SHODHAN , A.R. DATE OF HEARING : 11 - 05 - 2 016 DATE OF PRONOUNCEMENT : 29 - 06 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS A SSESSEE S APPEAL FOR A.Y. 2008 - 09 , AR ISES FROM ORDER OF THE CIT(A) - VIII, AHMEDABAD DATED 22 - 06 - 2012 IN APPEAL NO. CIT(A) - VIII/ITO. WD. 4(2)/ 7 33/10 - 11 , PARTLY CONFIRMING PENALTY OF RS. 20,000/ - OUT OF RS. 50,000/ - AS IMPOSED BY THE ASSESSING OFFICER IN ORD ER DATED 24 - 01 - 2011, IN PROCEEDINGS UNDER SECTION 271(1 ) (B) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1810 / A HD/20 12 A SSESSMENT YEAR 200 8 - 09 I.T.A NO. 1810 /AHD/20 12 A.Y. 2008 - 09 PAGE NO KANAK CASTOR PRODUCTS (P) LTD. VS. ITO 2 2. FACTS OF THE CASE ARE IN A NARROW COMPASS. THE ASSESSEE COMPANY FILED RETURN ON 29 - 09 - 2008 FOLLOWED BY REVISED ONES DATED 26 - 10 - 2009 AND 09 - 03 - 2010 DECLARING TOTAL LOSS OF RS. 6,17,50,097/ - . THE SAME WAS PROCESSED . THE ASSESSING OFFICER TOOK UP SCRUTINY . HE ISSUED SECTION 143(2) NOTICES ON 25 - 08 - 2009 AND 27 - 08 - 2010 ALONG WITH SECTION 142(1) NOTICES AND QUESTIONNAIRES DATED 19 - 01 - 2010. THE ASSE SSING OFFICER OBSERVES IN PENALTY ORDER THAT ALL THESE NOTICES STOOD DULY SERVED. THE ASSESSEE STATED TO HAVE NOT RESPONDED TO THE SAME. THESE NOTICES FURTHER ISSUED ON 28 - 01 - 2010, 17 - 02 - 2010, 20 - 08 - 2010, 03 - 09 - 2010 AND 14 - 10 - 2010 AS SERVED ON THE ASSESS EE WHO STATED TO HAVE ITS RESPONSE BY WAY OF VARIOUS DOCUMENTS ON 15 - 02 - 2010, 24 - 02 - 2010, 01 - 09 - 2010, 10 - 09 - 210 AND 25 - 10 - 2010 ; RESPECTIVELY. THE ASSESSING OFFICER TERMED IT AS HABITUAL DEFAULTER TO ISSUE THE IMPUGNED SHOW CAUSE NOTICE U/S. 271(1)(B) OF THE ACT DATED 15 - 11 - 2010. THE ASSESSEE IS AGAIN STATED TO HAVE NOT FILED ANY RESPONSE THERETO. THIS MADE THE ASSESSING OFFICER TO LEVY THE IMPUGNED PENALTY @ RS. 10,000/ - EACH FOR ALL THE FIVE DEFAULTS NARRATED HEREINABOVE. THE CIT(A) PARTLY CONFIRMS TH E SAME TO THE TUNE OF RS. 20,000/ - LEAVING THE ASSESSEE AGGRIEVED. 3. HEARD BOTH SIDES. CAS E FILE PERUSED. THERE IS NO DISPUTE ABOUT THE FACTS NARRATED IN THE PRECEDING PARAGRAPHS. THE ASSESSING OFFICER AS WELL AS THE CIT(A) FOR HAVING COMMITTED DEF AULT IN RESPONDING TO ABOVE STATED SCRUTINY NOTICES. WE FIND FROM TH E LOWER APPELLATE ORDER THAT TH E ASSSESSEE HAS DULY EXPLAINED ITS NON APPEARANCE /ADJOURNMENT APPLICATIONS ON 15 - 02 - 2010, 24 - 02 - 2010, I.T.A NO. 1810 /AHD/20 12 A.Y. 2008 - 09 PAGE NO KANAK CASTOR PRODUCTS (P) LTD. VS. ITO 3 01 - 09 - 2010, 10 - 09 - 2010 AND 25 - 10 - 2010. HE ALSO FILED NECESSARY DETAILS OF ABOUT 500 PAGES BY AVAILING SEVEN OPPORTUNITIES BETWEEN 29 - 03 - 2010 TO 29 - 12 - 2010. THE ASSESSING OFFICER COMPLETED ASSESSMENT ON BASIS THEREOF ON 29 - 12 - 2010 ASSESSING TOTAL LOSS AT RS. 1,80,60,440/ - RAISING N IL TAX DEMAND. THIS IS NOT THE REVENUE S CASE THAT THE ASSESSING OFFICER HAD NOT FRAMED A REGULAR ASSESSMENT U/S 143(3) OF THE ACT ON THE BASIS OF ASSESSEE S DOCUMENTS PLACED ON RECORD. WE CONCLUDE THAT THE ASSESSEE S ACT CANNOT BE TREATED AS TO HAVE NON - COOPERATIVE TO THE VARIOUS SCRUTINY NOTICES. WE DELETE THE IMPUGNED SECTION 271(1)(B) PENALTY. 4. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 29 - 06 - 201 6 SD/ - SD/ - ( PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 29 /06 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,