The DCIT, Circle-10, Ahmedabad V. Jethiben K.Patel Discretionary Family Trust, Ahmedabad

ITA 1946/AHD/2008

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9705 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-12-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 26-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R I PATEL
• Assessee Lawyers: H C SHAH
• Section: 143(3)

Judgement Text

ITA NO. 1946/AHD/2008 DCIT VS. JETHIBEN K. PATEL DISC. TRUST ASSESSMENT YEAR: 2002-03 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] ITA NO. 1946/AHD/2008 ASSESSMENT YEAR: 2002-03 DY. COMMISSIONER OF INCOME-TAX ............. ..APPELLANT CIRCLE-10, AHMEDABAD VS. JETHIBEN K. PATEL DISCRETIONARY TRUST ............ ................RESPONDENT NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD PAN : AAATJ 0260 F APPEARANCES BY: RI PATEL FOR THE APPELLANT HC SHAH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : DECEMBER 27, 20 16 DATE OF PRONOUNCING THE ORDER : DECEMBER 27, 2016 O R D E R PER PRAMOD KUMAR AM: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-XVI, AHMEDABAD DATED 19.03.2008 FOR ASSESSMENT YEAR 2002-03. 2. THE ONLY EFFECTIVE GROUND RAISED IN THIS APPEAL IS WHETHER THE CIT(A)-XVI, AHMEDABAD IS JUSTIFIED IN DELETING THE PENALTY OF R S.3,83,18,101/- U/S 271(1)(C) OF THE INCOME-TAX ACT. 3. BRIEFLY STATED FACTS ARE THAT FOR THE YEAR UNDER CONSIDERATION THE ASSESSMENT U/S 143(3) OF THE ACT WAS COMPLETED VIDE ORDER DATED 23 .03.2005, MAKING ADDITIONS OF RS.4,43,98,810/- ON ACCOUNT OF ACCRUED INTEREST AND RS.8,08,23,744/- ON ACCOUNT OF SHORT ITA NO. 1946/AHD/2008 DCIT VS. JETHIBEN K. PATEL DISC. TRUST ASSESSMENT YEAR: 2002-03 PAGE 2 OF 3 TERM CAPITAL GAIN. ON FURTHER APPEAL, THE LD. CIT( A) HAS UPHELD THE ACTION OF THE ASSESSING OFFICER VIDE HIS ORDER DATED 08.03.2006 AND CONFIRM ED THE ABOVE ADDITIONS MADE BY THE ASSESSING OFFICER. 4. SUBSEQUENT TO THE LD. CIT(A)S AFORESAID ORDER C ONFIRMING THE ADDITIONS MADE BY THE ASSESSING OFFICER, PENALTY U/S 271(1)(C) OF THE ACT WAS COMPLETED VIDE ORDER DATED 30.03.2007, IMPOSING A PENALTY OF RS.3,83,18,101/-. ON FURTHER APPEAL, THE IMPUGNED PENALTY ORDER WAS CANCELLED BY THE CIT(A) VIDE ORDE R DATED 19.03.2013. THE REVENUE, BEING AGGRIEVED, IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE US, IT WAS POINTED OUT BY THE LD. COUNSEL THAT, IN THE QUANTUM APPEAL, THE TRIBUNAL HAS DELETED THE QUANTU M ADDITIONS VIDE ORDER DATED 15.02.2013 IN ITA NO.1254/AHD/2006 - COPY OF THE OR DER IS PLACED ON RECORD. WHEN THE TRIBUNAL HAS ALREADY DELETED THE QUANTUM ADDITIONS IN QUESTION, THE PENALTY MADE IN RESPECT OF SUCH ADDITIONS CANNOT SURVIVE. WE, THER EFORE, DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) WHICH IS UPHELD AN D THE REVENUES APPEAL IS THUS DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF DECEMBER, 2016. SD/- SD/- MAHAVIR PRASAD PRAMOD KU MAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 27 TH DAY OF DECEMBER, 2016 BT* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD