Ashokbhai Ishwarbhai Prajapati, Ahmedabad V. The Income Tax Officer, Ward-3(3)(1), Ahmedabad

ITA 1836/AHD/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1110 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-03-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 11-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A [CONDUCTED THROUGH VIRTUAL COURT] BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 1836/AHD/2016 / ASSESSMENT YEAR: 2008-09 ASHOKBHAI ISHWARBHAI PRAJAPATI 43, VAIBHAV BUNGLOW VIBHAG-3 NR.GULAB TOWER, THALTEJ SOLA ROAD AHMEDABAD 380 061 PAN : AKMPP 7526 J VS ITO, WARD-3(3)(1) AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : WRITTEN SUBMISSIONS BY SHRI P.F. JAIN FOR THE ASSESSEE REVENUE BY : SHRI DILEEP KUMAR, SR.DR / DATE OF HEARING : 03/06/2020 /DATE OF PRONOUNCEMENT : 03/06/2020 O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST ORDER OF TH E LD.CIT(A)-4, AHMEDABAD DATED 23.5.2016 PASSED FOR THE ASSTT.YEAR 2008-09. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) HAS ERRED IN CONFIRMING THE PENALTY ON THE ADDITION OF RS.19,00, 060/- IMPOSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. ITA NO.1836/AHD/2016 - 2 - 3. WITH THE ASSISTANCE OF LD.DR, WE HAVE GONE THROU GH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD THAT THE AO HAS IMPOSED PENALTY OF RS.55,29,555/- UNDER SECTION 271(1)(C) O F THE ACT. THIS PENALTY WAS COMPUTED ON AN ADDITION OF RS.1,65,88,665/-. A GAINST THIS PENALTY ORDER DATED 27.3.2014, THE ASSESSEE CARRIED THE MAT ERIAL IN APPEAL BEFORE THE LD.CIT(A). THE LD.CIT(A) HAS DELETED THE PENAL TY REPRESENTING ADDITION OF RS.1,47,18,760/-. HOWEVER, WITH REGARD TO THE ADDITION OF RS.19,00,060/-WHATEVER AMOUNT OF PENALTY IS TO BE W ORKED OUT, THAT HAS BEEN CONFIRMED BY THE LD.CIT(A). THE ASSESSEE IS C HALLENGING PENALTY COMPUTED ON AN ADDITION OF RS.19,00,060/-. 4. IT HAS BEEN PLEADED IN THE WRITTEN SUBMISSIONS F ILED BY THE LD.COUNSEL FOR THE ASSESSEE THAT THIS ADDITION OF R S.19,00,060/- STANDS DELETED IN THE QUANTUM APPEAL BEARING ITA NO.355/AH D/2012. THE TRIBUNAL HAS DECIDED APPEALS OF THE ASSESSEE VIDE O RDER DATED 13.3.2020 FOR THE ASSTT.YEARS 2006-07 TO 2008-09. A PERUSAL OF THE TRIBUNALS ORDER WOULD REVEAL THAT ADDITION OF RS.19,00,060/- HAS BE EN DELETED. THIS FACTUAL POSITION OF THE CASE HAS NOT BEEN DISPUTED BY THE LD.DR. 5. WE FIND THAT SUB-CLAUSE (III) OF SECTION 271(1)( C) PROVIDES MECHANISM FOR QUANTIFICATION OF PENALTY. IT CONTEM PLATES THAT THE ASSESSEE WOULD BE DIRECTED TO PAY A SUM IN ADDITION TO TAXES, IF ANY, PAYABLE BY HIM, WHICH SHALL NOT BE LESS THAN , BUT WHICH SHALL NOT EXCEED THREE TIMES THE AMOUNT OF TAX SOUGHT TO BE EVADED B Y REASON OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE P ARTICULARS OF INCOME. IN OTHER WORDS, THE QUANTIFICATION OF THE PENALTY I S DEPENDED UPON THE ADDITION MADE TO THE INCOME OF THE ASSESSEE. IN TH E PRESENT CASE, THE ADDITION OF RS.19,00,060/- HAS BEEN DELETED BY THE TRIBUNAL VIDE ABOVE ITA NO.1836/AHD/2016 - 3 - ORDER DATED 13/3/2020 CITED SUPRA. IN VIEW OF THE ABOVE, PENALTY QUA ADDITION OF RS.19,00,060/- IS DELETED. IN OTHER WO RDS, WHATEVER AMOUNT OF PENALTY IS TO BE COMPUTED ON THE ADDITION OF RS. 19,00,060/- STANDS DELETED. GROUND IS ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON 3 RD JUNE, 2020. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) VICE-PRESIDENT