Silvertouch Technologies Ltd., Ahmedabad V. The Dy.CIT.,(OSD),Circle-8, Ahmedabad

ITA 2089/AHD/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8633 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-01-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 25-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Assessee Lawyers: S N DIVATIA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT (AZ) AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.2089/AHD/2011 ( / ASSESSMENT YEAR : 2007-08) SILVERTOUCH TECHNOLOGIES LTD. 2 ND FLOOR, SAFFRON TOWER NR.PANCHVATI CIRCLE AMBAWADI, AHMEDABAD / VS. THE DCIT (OSD) CIRCLE-8 AHMEDABAD ./ ./ PAN/GIR NO. : AACCS 6474 P ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.N. DIVATIA, A.R. / RESPONDENT BY : SHRI ROOP CHAND SR. DR. / DATE OF HEARING 09/01/205 !'# / DATE OF PRONOUNCEMENT 02/02/2015 / O R D E R PER SHRI G.C.GUPTA, VICE PRESIDENT (AZ) : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF LD.CIT(A)-XIV, AHMEDABAD, DATED 24/06/2011 FOR TH E ASST.YEAR 2007- 08. 2. THE ONLY ISSUE IN THIS APPEAL IS REGARDING VALID ITY OF PENALTY LEVIED U/S.271(1)(C) OF THE I.T.ACT, 1961 OF RS.3,09,457/- . THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS DELETED THE PENALTY U/S.271(1)(C) OF THE ACT ON THE EXPORT PAYMENTS REC EIVED UPTO SIX MONTHS AT THE END OF THE RELEVANT FINANCIAL YEAR AND OF TH E PAYMENTS RECEIVED ITA NO.2089/AHD/2011 SILVERTOUCH TECHNOLOGIES LTD. VS. THE DCIT (OSD) ASST.YEAR - 2007-08 - 2 - LATER ON IN APRIL-2008 HAVE BEEN SUBJECTED TO PENAL TY U/S.271(1)(C) OF THE ACT. HE SUBMITTED THAT ALL THE MATERIAL FACTS WERE DISCLOSED BEFORE THE AO AT THE TIME OF ASSESSMENT ITSELF AND, THEREFORE, THERE WAS NO JUSTIFICATION FOR LEVY OF PENALTY IN THIS CASE. HE SUBMITTED THAT THE CONDUCT OF THE ASSESSEE WAS BONA FIDE THROUGHOUT TH E PROCEEDINGS. THE DR HAS RELIED ON THE ORDERS OF THE AO AND CIT(A). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE ORDERS OF THE AO AND LD.CIT(A). WE FIND THAT, IN THIS CAS E, ALL THE MATERIAL FACTS RELEVANT FOR ASSESSMENT WERE DISCLOSED BY THE ASSES SEE AT THE TIME OF ASSESSMENT ITSELF BEFORE THE AO. THE CIT(A) HAS DE LETED THE PENALTY WITH REGARD TO THE PROCEEDS OF EXPORTS WITHIN THE T IME-FRAME AS PER THE RBI CIRCULAR AND HAS CONFIRMED THE PENALTY U/S.271( 1)(C) OF THE ACT ON THE OTHER PROCEEDS OF EXPORT SALES AMOUNTING TO RS. 2,30,800/- WHICH WAS BEYOND THE PRESCRIBED TIME ON WHICH AMOUNT THE ASSE SSEE WOULD NOT BE ENTITLED TO CLAIM EXEMPTION U/S.10-B OF THE ACT. W E FIND THAT MERELY BECAUSE A CLAIM OF DEDUCTION COULD NOT BE ALLOWED T O THE ASSESSEE AS PER THE PROVISIONS OF LAW, IT DOES NOT AUTOMATICALLY LE AD TO THE LEVY OF PENALTY U/S.271(1)(C) OF THE ACT. THE ASSESSEE HAS DISCLOS ED ALL THE MATERIAL FACTS BEFORE THE AO AND THE CONDUCT OF THE ASSESSEE THROU GHOUT HAS BEEN BONA FIDE. THE ASSESSEE HAS FILED AN EXPLANATION, WHICH COULD NOT BE SAID TO BE NOT BONA FIDE. MERELY BECAUSE CERTAIN DISALLOWANCE WAS MADE DUE TO NON-FULFILLMENT OF CERTAIN CONDITIONS LAID DOWN AS PER PROVISIONS OF THE ACT, IT COULD NOT BE SAID THAT THE ASSESSEE SHOULD ALSO BE PENALIZED U/S.271(1)(C) OF THE ACT. IN THE FACTS OF THE CASE , WE ARE OF THE VIEW THAT IT WAS NOT A FIT CASE FOR LEVY OF PENALTY U/S.271(1 )(C) OF THE ACT, WHICH IS ITA NO.2089/AHD/2011 SILVERTOUCH TECHNOLOGIES LTD. VS. THE DCIT (OSD) ASST.YEAR - 2007-08 - 3 - ACCORDINGLY CANCELLED AND THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. SD/- SD/- ( ANIL CHATURVEDI ) ( G.C. GUPTA ) ACCOUNTANT MEMBER VICE PRESIDENT (AZ) AHMEDABAD; DATED 02/ 02/2015 &.., .(../ T.C. NAIR, SR. PS !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-XIV, AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 9.1.15 (DICTATION-PAD 5-PA GES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..9.1.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.02.02.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 02.02.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK.. . 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER