The ACIT(OSD),Range-1., Ahmedabad V. Bhairavnath Industries Pvt.Ltd., Ahmedabad

ITA 1962/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80562 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-12-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 08-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Gross profit estimation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. ITA NO. 1962/AHD/2011 (ASSESSMENT YEAR: 2003-04) ACIT (OSD), RANGE-1, AHMEDABAD APPELLANT VS. BHAIRAVNATH INDUSTRIES PVT. LTD. 225, NEW CLOTH MARKET, O/S. RAIPUR GATE, AHMEDABAD RESPONDENT PAN: AAACB6232A / BY REVENUE :SHRI V. K. SINGH, SR. D.R. / BY ASSESSEE : NONE /DATE OF HEARING :08.12.2014 !' /DATE OF PRONOUNCEMENT : 22.12.2014 I.T.A. NO. 1962/AHD/2011 FOR A.Y. 03-04 (ACIT(OSD) VS. BHAIRAVNATH INDUSTRIES P. LTD.) PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-VI, AHMEDABAD, DATED 20.05.2011 FOR A.Y. 2003-04 ON THE FOLLOWING GROUND : 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DEL ETING THE PENALTY U/S. 271(1)(C) LEVIED BY A.O. ON ACCOUNT OF FALL IN GP OF RS.15,98,308/-. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF T HE ASSESSING OFFICER TO THE EXTENT MENTIONED ABOVE, SI NCE THE ASSESSEE HAS FAILED TO DISCLOSE HIS TRUE INCOME. 2. ASSESSING OFFICER LEVIED PENALTY OF RS.6,14,708/ - MADE UNDER THE PROVISIONS OF SECTION 271(1)(C) ON ACCOUN T OF FALL IN GROSS PROFIT, WHICH WAS DELETED BY CIT(A). HE OBSE RVED THAT ASSESSING OFFICER HAS LEVIED PENALTY ON THREE ADDIT IONS MADE IN ASSESSMENT ORDER. OUT OF THESE ADDITIONS, MAJOR ADD ITION ON ACCOUNT OF LOW GROSS PROFIT WAS DELETED BY ITAT AND AFTER GIVING APPEAL EFFECT, NO ADDITION ON THIS ACCOUNT SURVIVED AND ACCORDINGLY ASSESSING OFFICER REDUCED PENALTY ON TH IS ACCOUNT. ACCORDINGLY, WHICH IS ONLY ISSUE BEFORE US AS FAR A S PENALTY IS CONCERN BASIS FOR PENALTY LEVIED ON LOW GROSS PROFI T WAS NO LONGER THERE FOR ADJUDICATION. THIS REASONED FINDI NG OF CIT(A) NEEDS NO INTERFERENCE FROM OUR SIDE. WE UPHOLD THE SAME I.T.A. NO. 1962/AHD/2011 FOR A.Y. 03-04 (ACIT(OSD) VS. BHAIRAVNATH INDUSTRIES P. LTD.) PAGE 3 WHEREBY CIT(A) DELETED PENALTY U/S. 271(1)(C) LEVIE D BY ASSESSING OFFICER ON ACCOUNT OF FALL IN GROSS PROFI T OF RS.15,98,308/-. NOBODY POINTED OUT ABOUT ASSESSEE S APPEAL. 3. AS A RESULT, APPEAL FILED BY REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 22 ND DAY OF DECEMBER, 2014. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY S.K.SINHA # # # # %& %& %& %& '&' '&' '&' '&' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. ,, - / CONCERNED CIT 4. -- / CIT (A) 5. &12 %, , / DR, ITAT, AHMEDABAD 6. 256 78 / GUARD FILE. BY ORDER / # , 9/ , , ;