Shri Piyush Prakashchandra Ghadiali, Surat V. The Income Tax Officer, Ward-2(4), ( Now ITO, Ward- 1(2)(4)), Surat

ITA 2066/AHD/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0108 (ITAT-SURAT)
• Duration Of Justice: 3 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 13-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M JAGASHETH

Judgement Text

PIYUSH PRAKASHCHANDRA GHALIALI VS. ITO, WARD-1(2)(4), SURAT /ITA NO.2066/AHD/2015 PAGE 1 OF 2 , , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . . ./ I.T.A.NO.2066/AHD/2015 [ [ / ASSESSMENT YEAR : 2008-09 SHRI PIYUSH PRAKASHCHANDRA GHADIALI, 2/375, PARISWAD, GHANTI SHERI, RUSTAMPURA, SURAT 395 002. [PAN: ANJPG 4306 M] VS. THE INCOME TAX OFFICER WARD-1(2),(4), SURAT. APPELLANT /RESPONDENT [ /ASSESSEE BY: SHRI P.M.JAGASHETH CA /REVENUE BY: SHRI PRASOON KABRA - SR. DR / DATE OF HEARING: 1 5 .0 5 .2019 /PRONOUNCEMENT ON: 1 5 .0 5 .2019 /O R D E R PER BHAVNESH SAINI, JM: 1. THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-II [LD.CIT(A)], SURAT DATED 09.06.2015 FOR ASSESSMENT YEAR 2008-09 CHALLENGING THE LEVY OF PENALTY U/S.271(1)(C) OF THE ACT. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF SMALL SCALE TRADING DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER NOTED THAT ASSESSEE HAS ENHANCED HIS CAPITAL AND IN ABSENCE OF ANY EXPLANATION AND EVIDENCE ADDITION OF RS.7,12,775/- WAS MADE. ON THIS ADDITION, PENALTY U/S.271(1)(C) OF THE ACT WAS LEVIED WHICH IS CONFIRMED BY THE LD.CIT(A). 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THE ASSESSEE PREFERRED APPEAL AGAINST THE QUANTUM ADDITION BEFORE ITAT PIYUSH PRAKASHCHANDRA GHALIALI VS. ITO, WARD-1(2)(4), SURAT /ITA NO.2066/AHD/2015 PAGE 2 OF 2 SURAT IN ITA NO.2829/AHD/2012/SRT AND THE ADDITION HAS BEEN DELETED BY THE TRIBUNAL VIDE ORDER DATED 01.11.2018. COPY OF THE ORDER IS PLACED ON RECORD. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT DISPUTE THIS. 5. CONSIDERING THE ABOVE FACTS, IT IS CLEAR THAT THE ADDITION HAS BEEN DELETED BY THE ITAT IN THE CASE OF THE SAME ASSESSEE ON WHICH PENALTY HAVE BEEN LEVIED. SINCE FOUNDATION OF THE PENALTY HAS GONE, THEREFORE THERE WAS NO JUSTIFICATION TO LEVY THE PENALTY U/S.271(1)(C) OF THE ACT. 6. WE, ACCORDINGLY, SET-ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. 8. THE ORDER PRONOUNCED IN THE OPEN COURT 15-05-2019. SD/- SD/- (O.P.MEENA) (BHAVNESH SAINI) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 15 TH MAY , 2019/ S.GANGADHARA RAO, SR.PS COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT