ACIT Cir.-4, Pune V. M/s. Raviraj Panjabi associates, Pune

ITA 207/PUN/2010

• Counselvise Citation: 20724514 RSA 2010
• Duration Of Justice: 1 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 04-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V L JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI G.S. PANNU (AM) ITA NO. 207/PN/2010 (ASSTT. YEAR: 2004-05) ASSTT.COMMISSIONER OF INCOME TAX, ... APPELLANT CIRCLE-4, PUNE V. M/S RAVIRAJ PANJABI ASSOCIATES RESPONDENT S NO 68/7/8/9, BEHIND SOPAN BAUG B T KAWADE ROAD, GHORPADI PUNE 411 001 APPELLANT BY : SHRI SANTOSH KUMAR RESPONDENT BY : SHRI V.L. JAIN DATE OF HEARING :19.9.11 DATE OF PRONOUNCEMENT: 21.10.11 ORDER PER I.C. SUDHIR, JM THE REVENUE HAS QUESTIONED THE FIRST APPELLATE ORD ER WHEREBY THE LD. CIT(A) HAS DELETED THE PENALTY LEVIED U/S. 271(1)(C ) OF T HE ACT AT RS. 1,27,50,000/-. 2. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY T HE PARTIES. 3. HAVING GONE THROUGH THE ORDERS OF THE LOWER AUTH ORITIES WE FIND THAT THE ADDITION/DISALLOWANCE MADE ON ACCOUNT OF DENIAL OF CLAIMED DEDUCTION U/S. 80IB(10) I.E. SUBJECT MATTER OF THE LEVY OF PENALTY HAS BEEN DELETED BY THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ASSESS EE AND OTHERS (BRAHMA ASSOCIATES AND OTHERS INCLUDING ASSESSEE, (2009) 122 TTJ (SB) 433). THE SPECIAL BENCH HAS HELD THAT THE AMENDED PROVISIONS U/S. 80IB(10)(D) B EING PROSPECTIVE IN OPERATION I.E. W.E.F. 1.4.2005 ARE NOT APPLICABLE IN THE CASE OF ASSESSEE FOR THE A.Y. 2004-05. IN VIEW OF THIS DECISION THE LD. CIT(A) HAS DELETED THE PENALTY IN QUESTION WITH FOLLOWING FINDINGS IN PARA 3.5 : ITA . NO 207/PN/2010 RAVIRAJ PUNJABI ASSOCIATES., A.Y. 2004-05 PAGE OF 3 2 3.5 I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE APPELLANTS SU BMISSION DISCUSSED ABOVE AND THE DECISION OF SPECIAL BENCH, PUNE IN THE CASE OF BRAMHA ASSOCIATES & OTHERS, IN WHICH THE APPELLANT WAS ALSO ONE OF THE PARTIES, THE ISSUE OF APPLICABILITY OF SECTION 80IB(10)(D) IN A.Y. 2004-0 5 STANDS DECIDED IN FAVOUR OF THE APPELLANT. FURTHER, IT IS ALSO EXPLAINED BY THE APPELLANT THAT SO FAR AS APPLICABILITY OF PROVISIONS OF SECTION 80IB(14)(A) WAS CONCERNED, IN TWO RECENT TRIBUNAL DECISIONS MENTIONED ABOVE, IT HAS BEEN HEL D IT TO BE PROSPECTIVE AND APPLICABLE FROM A.Y. 2005-06. THEREFORE, THE DISAL LOWANCE U/S 80IB(10) ON THIS BASIS IS A DEBATABLE ISSUE WHERE TO DIFFERENT INTERPRETATIONS WERE POSSIBLE. FURTHER, ALL THE MATERIAL FACTS RELATED T O THE CLAIM U/S 80IB(10) WERE AVAILABLE ON RECORD INCLUDING THIS FACT REGARDING O VERHEAD TERRACE AREA. THEREFORE, IT CANNOT BE HELD TO BE A CASE OF FURNIS HING OF INACCURATE PARTICULARS OF INCOME. IN VIEW OF THE ABOVE DISCUS SION IT IS HELD THAT THE APPELLANT IS NOT LIABLE FOR PENALTY U/S 271(1)(C ) WHICH IS DIRECTED TO BE DELETED. GROUND NO. 1 OF APPEAL IS, THEREFORE, ALLOWED. 4. SINCE THE ISSUE IN QUANTUM WAS DEBATABLE IN NATU RE, HENCE IT CAN NOT BE HELD THAT THERE WAS CONCEALMENT OF PARTICULARS OF INCOME OR FURNISHING INACCURATE PARTICULARS THEREON ON THE PART OF THE ASSESSEE WHI LE CLAIMING DEDUCTION U/S. 80IB(10) DURING THE A.Y. UNDER CONSIDERATION. THE LD. CIT(A) IN OUR VIEW HAS THUS RIGHTLY DELETED THE PENALTY. SAME IS UPHELD. THE GROUNDS RAISING THE ISSUE ARE THUS REJECTED. 5. CONSEQUENTLY, APPEAL IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 21ST OCTOBER, 2011 SD/- SD/- ( G.S. PANNU ) ACCOUNTANT MEMBER (I.C. SUDHIR ) JUDICIAL MEMBER PUNE, DATED THE 21ST OCTOBER, 2011 US COPY OF THE ORDER IS FORWARDED TO : ITA . NO 207/PN/2010 RAVIRAJ PUNJABI ASSOCIATES., A.Y. 2004-05 PAGE OF 3 3 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT -II, PUNE 4. THE CIT(A)-II, PUNE 4. THE D.R. B BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE