The ACIT, Circle-3, Vadodara V. Shri Rashmikant C. Patel, Dharmaj

ITA 2050/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6280 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 10-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 2050/AHD/2015 (ASSESSMENT YEAR: 2008-09) THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1(3), VADODARA V/S RASHMIKANT C. PATEL, C/O. PRANNATH PETROLEUM, NEAR. JALARAM MANDIR, DHARMAJ CHOWKDI, DHARMAJ-388430 (APPELLANT) (RESPONDENT) PAN: AETPP5363E APPELLANT BY : SHRI MUDIT NAGPAL, SR. D. R. RESPONDENT BY : SHRI P. M. MEHTA, A.R. ( )/ ORDER DATE OF HEARING : 16 -01-201 8 DATE OF PRONOUNCEMENT : 18 -01-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)-5, VADODARA DATED 20.03.2015 PERTAINING TO A.Y. 2008-0 9. ITA NO. 2050 /AHD/2015 . A.Y. 2008-0 9 2 2. THE ONLY GRIEVANCE OF THE REVENUE IS THAT THE LD. C IT(A) ERRED IN DELETING THE PENALTY OF RS. 22,30,400/- LEVIED U/S.271(1)(C) OF THE ACT. 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER DATED 21.1.2010 FRAMED U/S. 143(3) OF THE ACT. THE ASSESSMENT WAS COMPLETED BY TREATING THE SHORT TERM CAPITAL GAIN AS INCOME FROM BUSINESS. 4. THE MATTER TRAVELLED UP TO THE TRIBUNAL AND THE TRI BUNAL VIDE ORDER DATED 13.05.2016 IN ITA NOS. 2131/AHD/2014 & 2484/AHD/201 1 DIRECTED THE A.O. TO TREAT THE PROFIT ON SALE OF SHARE AS SHORT TERM CAPITAL GAIN. 5. WE FIND THAT THE A.O. HAS LEVIED PENALTY U/S. 271(1 )(C) OF THE ACT ON THE BASIS OF THE FINDING GIVEN IN THE ASSESSMENT ORDER. SINCE THE VERY BASIS OF THE LEVY OF PENALTY HAS BEEN REMOVED BY THE TRIBUNAL BY ITS ORD ER MENTIONED ELSEWHERE, THERE REMAINS NOTHING FOR THE LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. 6. APPEAL FILED BY THE REVENUE IS ACCORDINGLY DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 18- 01- 20 18 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUN TANT MEMBER AHMEDABAD: DATED 18 /01/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED.