The DCIT, Circle-2(1)(2), Ahmedabad V. Magic Share Traders Ltd., Ahmedabad

ITA 2122/AHD/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4690 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 12-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S SHUKLA
• Section: 271(1)(c); 2

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 2122/AHD/2018 ( ASSESSMENT YEAR : 2012-13) THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE -2(1)(2), AHMEDABAD 1 ST FLOOR, NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, AHMEDABAD / VS. MAGIC SHARE TRADERS LTD. 101, AKASHGANGA, GUJARAT COLLEGE ROAD, ELLISBRIDGE, AHMEDABAD - 380006 ./ ./ PAN/GIR NO. : AAECM9542L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. S. SHUKLA, SR.D.R. / RESPONDENT BY : WRITTEN SUBMISSION DATE OF HEARING 11/02/2021 !'# / DATE OF PRONOUNCEMENT 12/02/2021 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-2, AHMEDABAD (CIT(A) IN SHORT), DATED 0 3.07.2018 ARISING IN THE PENALTY ORDER DATED 26.03.2017 PASSED BY THE ASSESSING OFFICER ITA NO. 2122/AHD/18 (DCIT VS. MAGIC SHARES TRADERS LTD.) A.Y. 2012-13 - 2 - (AO) U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961; (T HE ACT) CONCERNING ASSESSMENT YEAR 2012-13. 2. THE REVENUE BY WAY OF ITS GROUNDS OF APPEAL HAS CHALLENGED THE ACTION OF THE CIT(A) IN DELETING TH E PENALTY OF RS.1,28,54,907/- UNDER S. 271(1)(C) OF THE ACT. 3. WHEN THE MATTER WAS CALLED FOR HEARING, AS PER A SSESSEES WRITTEN SUBMISSION, IT IS NOTICED THAT THE QUANTUM ADDITIONS/DISALLOWANCES GIVING RISE TO THE IMPOSITI ON OF PENALTY IN APPEAL HAS BEEN REVERSED BY THE CO-ORDINATE BENCH O F TRIBUNAL IN ITA NO. 770/AHD/2016, ORDER DATED 31.10.2018 IN THE QUA NTUM PROCEEDINGS. 4. IN VIEW OF THE FACT THAT THE QUANTUM ADDITIONS/D ISALLOWANCES ITSELF DO NOT SURVIVE AND CEASED TO EXIST HAVING RE GARD TO THE APPELLATE ORDER OF THE ITAT IN QUANTUM PROCEEDINGS, THE VERY BASIS FOR IMPOSITION OF PENALTY UNDER S. 271(1)(C) DOES NOT S URVIVE ANY MORE. THEREFORE, WE SEE NO ERROR IN THE APPELLATE ORDER P ASSED BY CIT(A) WHEREBY THE PENALTY IMPOSED UNDER S.271(1)(C) OF TH E ACT BY AO WAS DELETED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 12/02/2021 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE THIS ORDER PRONOUNCED ON 12/02/2021 ITA NO. 2122/AHD/18 (DCIT VS. MAGIC SHARES TRADERS LTD.) A.Y. 2012-13 - 3 - (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56)