SAND PLAST INDIA LIMITED, Jaipur V. DCIT, Alwar

ITA 213/JPR/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1995 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA; ROLLY AGARWAL
• Assessee Lawyers: VINOD GUPTA CA DHK
• Keywords: Additional evidence; Non-deduction of tax
• Section: 144; 68

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 305/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 2, ALWAR. CUKE VS. M/S. SAND PLAST INDIA LTD., VILL. GUNTI, NH-8, BEHROR, DISTT. ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFCS 2228 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT C.O. NO. 41/JP/2014 ( ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 305/JP/2014 ) FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2009-10. M/S. SAND PLAST INDIA LTD., VILL. GUNTI, NH-8, BEHROR, DISTT. ALWAR. CUKE VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 2, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFCS 2228 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 213/JP/2017 ) FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2009-10. M/S. SAND PLAST INDIA LTD., VILL. GUNTI, NH-8, BEHROR, DISTT. ALWAR. CUKE VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFCS 2228 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROLLY AGARWAL (CIT) & SHRI R.A. VERMA (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VINOD GUPTA (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 06.07.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 24/07/2017. 2 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE ARE TWO APPEALS FILED BY THE REVENUE AND ASSE SSEE AGAINST THE ORDERS OF LD. CIT (A) ALWAR DATED 26.02.2014 AND 13.01.201 7 PERTAINING TO ASSESSMENT YEAR 2009-10. THE ASSESSEE HAS ALSO FILED A CROSS OBJECT ION ARISING OUT OF APPEAL IN ITA NO. 305/JP/2014 FILED BY THE REVENUE. OUT OF THESE TWO APPEALS, ITA NO. 305/JP/2014 IS IN RESPECT OF QUANTUM PROCEEDINGS AN D ITA NO. 213/JP/2017 IS RESPECT OF PENALTY PROCEEDINGS. WE, FIRST TAKE UP THE REVENUES APPEAL IN ITA NO. 305/JP/2014. THE REVENUE HAS RAISED THE FOLLOWING MODIFIED SOLITARY GROUND FILED ON 24.05.2017 : THAT THE COMMISSIONER OF INCOME TAX (APPEALS), A LWAR HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF TH E CASE IN DELETING THE ADDITION OF RS. 6,80,00,000/- U/S 68 OF THE ACT MADE BY THE AO ON A/C OF ADVANCE AGAINST EQUITY CAPITAL RECEIVED FROM M/S. RATANA COMMERCIAL ENTERPRISES (P) LTD. WITHOUT VERIFYING T HE CREDITWORTHINESS AND GENUINENESS OF THE SOURCE. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT UNDER SECTIO N 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAME D VIDE ORDER DATED 13.12.2011 PERTAINING TO ASSESSMENT YEAR 2009-10. WHILE FRAMI NG THE ASSESSMENT, THE AO MADE DISALLOWANCE OF EXPENDITURES OF RS. 45,42,120/ -. THE AO OBSERVED THAT DURING THE YEAR THE ASSESSEE HAS RAISED UNSECURED LOAN OF RS. 79,25,000/- FROM VARIOUS CORPORATE ASSESSES FOR WHICH NO DETAILS HAVE BEEN F URNISHED. SIMILARLY, THE ASSESSEE HAS RAISED UNSECURED LOAN OF RS. 75,000/- FROM SHRI RAJESH GUPTA, DIRECTOR. HE, 3 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. THEREFORE, MADE AN ADDITION OF RS. 80,00,000/-. TH E AO FURTHER OBSERVED THAT THE ASSESSEE RECEIVED AN ADVANCE OF RS. 6.80 CRORE FROM M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. AGAINST EQUITY CAPITAL. IN T HE ABSENCE OF DETAILS, THE AO MADE AN ADDITION OF RS. 6.80 CRORES OVER AND ABOVE THE I NCOME ESTIMATED BY HIM ABOVE. AGAINST THIS, THE ASSESSEE PREFERRED AN APPEAL BEFO RE LD. CIT (A), WHO AFTER CONSIDERING THE SUBMISSIONS PARTLY ALLOWED THE APPE AL. WHILE PARTLY ALLOWING THE APPEAL, THE LD. CIT (A) DELETED THE TRADING ADDITIO N. HE ALSO DELETED THE DISALLOWANCE OF EXPENSES. THE LD. CIT (A) ALSO DE LETED THE DISALLOWANCE MADE ON ACCOUNT OF NON-DEDUCTION OF TAX. HOWEVER, THE LD. CIT (A) CONFIRMED THE ADDITION OF RS. 80,00,000/- MADE BY THE AO FOR THE REASON THAT ASSESSEE COULD NOT DISCHARGE THE ONUS U/S 68 ON ACCOUNT OF LOAN RECEIVED BY THE ASSESSEE FROM THE DIRECTOR. IN RESPECT OF ADDITION MADE ON ACCOUNT OF UNEXPLAINED ADVANCES OF RS. 6.80 CRORE RECEIVED FROM M/S. RATNA COMMERCIAL ENTERPRISES PVT . LTD., THE LD. CIT (A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DELETED THE SAME. AGAINST THIS, BOTH THE REVENUE AND ASSESSEE HAVE FILED APPEAL AND CROS S OBJECTION RESPECTIVELY. 3. IN REVENUES APPEAL, THE ONLY EFFECTIVE GROUND I S AGAINST DELETION OF ADDITION OF RS. 6.80 CRORES AS MADE BY THE AO ON ACCOUNT OF ADVANCE RECEIVED FROM M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. 3.1. THE LD. D/R VEHEMENTLY ARGUED THAT LD. CIT (A) WAS NOT JUSTIFIED IN DELETING THE ADDITION. HE SUPPORTED THE ORDER OF THE AO ON T HIS ISSUE. 3.2. ON THE CONTRARY, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE COMPANY IS A PUBLIC LIMITED COMPANY. COMPANY WAS DE CLARED AS SICK BY THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR) O RDER DATED 02.12.2002. HE SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAD RECEIVED 4 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. THROUGH BANKING CHANNEL A SUM OF RS. 6.80 CRORE FRO M M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. AS ADVANCE AGAINST EQUITY SHA RES TO BE ALLOTTED. THE ASSESSEE SOUGHT PERMISSION OF BIFR FOR ALLOTMENT OF SHARES. HOWEVER, BIFR DIRECTED THE ASSESSEE COMPANY NOT TO ISSUE SHARES. M/S. RATNA C OMMERCIAL ENTERPRISES PVT. LTD. MADE DEMAND FOR REFUND OF THE MONEY ALONG WITH INTE REST VIDE LETTER DATED 25 TH MAY, 2009. THE COMPANY BEING UNDER FINANCIAL STRES S, REFUNDED RS. 50.00 LACS ONLY ON 17.10.2011 VIDE CHEQUE NO. 699580 DRAWN ON STATE BANK OF INDIA, NEW DELHI. THE LD. COUNSEL STATED THAT THE REVENUE HAS COME IN APPEAL PURELY ON THE BASIS THAT CREDITWORTHINESS OF M/S. RATNA COMMERCIAL ENTERPRIS ES PVT. LTD. COULD NOT BE ESTABLISHED. THE LD. COUNSEL SUBMITTED THAT BALANCE SHEET OF M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. AS ON 31.03.2009 IS PLACED ON RECORD IN THE FORM OF PAPER BOOK AT PAGES 46-54. AS PER THE DIRECTORS REPORT DATED 31.03.2009, PROFIT BEFORE TAX WAS RS. 2,32,72,493/-. AS PER THE BALANCE SHEET, T HE ASSESSEE WAS HAVING FUNDS AVAILABLE IN THE FORM OF SHARE CAPITAL AND RESERVES AND SURPLUS. THEREFORE, THE SAID COMPANY WAS HAVING SUFFICIENT FUND TO ADVANCE A SUM OF RS. 6.80 CRORE TO THE ASSESSEE COMPANY. 3.3. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE M ATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELO W. THE LD. CIT (A) HAS DECIDED THE ISSUE BY OBSERVING AS UNDER :- 9.5. I HAVE PERUSED THE ASSESSMENT ORDER, REMAND REPORT AS WELL AS SUBMISSIONS MADE BY THE APPELLANT AND FIND THE ADDI TION OF RS. 6.80 CRORES WAS MADE BY THE AO ON ACCOUNT OF FAILURE ON THE PART OF APPELLANT TO FURNISH ANY EVIDENCE. IN THE COURSE O F APPELLATE PROCEEDINGS, THE EVIDENCE FILED BY THE APPELLANT WA S FORWARDED TO THE AO FOR EXAMINATION. THE AO IN HIS REPORT HAS ACCEPT ED THE FACT THAT COMPLETE EVIDENCE WAS FILED AND THERE IS NO JUSTIFI CATION IN MAKING THE 5 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. SAID ADDITION. ACCORDINGLY, I DELETE THE ADDITION O F RS. 6.80 CRORES MADE BY THE AO U/S 68 OF THE I.T. ACT ON ACCOUNT OF ADVANCES RECEIVED FROM M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. FROM THE ABOVE ORDER OF LD. CIT (A), IT APPEARS THA T THE AO HAS ACCEPTED THE CREDITWORTHINESS OF THE COMPANY. WE HAVE ALSO PERU SED THE REMAND REPORT AS ENCLOSED IN THE PAPER BOOK AT PAGES 18-24 WHEREIN T HE AO HAS ACCEPTED THE GENUINENESS OF THE TRANSACTION AND IDENTITY OF THE ENTITY. FROM THE BALANCE SHEET AS ENCLOSED, IT CAN BE INFERRED THAT THE COMPANY, NAME LY, M/S. RATNA COMMERCIAL ENTERPRISES PVT. LTD. WAS HAVING SUFFICIENT FUND TO MAKE ADVANCE TO THE ASSESSEE. UNDER THESE FACTS, WE DO NOT SEE ANY REASON TO DIST URB THE FINDING OF LD. CIT (A). THE SAME IS CONFIRMED. THE GROUND RAISED BY THE REV ENUE IS DISMISSED. 4. NOW, WE TAKE UP CROSS OBJECTION OF THE ASSESSEE. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN THE CROSS OBJECTION :- 1. THAT THE ADDITION U/S 68 UNSECURED LOAN RS. 80,00,0 00/- IS DUE TO LACK OF BANK STATEMENT, NOW WE PROVIDE IT FOR YOUR KIND PERUSAL AS AT THE TIME OF APPEAL BANK STATEMENT WAS NOT AVAILA BLE WITH BANK DUE TO VERY OLD PERIOD. 2. THAT THE ADDITION U/S 68 UNEXPLAINED ADVANCE OF RS. 6.8 CRORE, IDENTITY AND GENUINENESS OF THE SAID ADVANCE ACCEPT ED BY LD. ACIT, CIRCLE-2, ALWAR AND LD. CIT (A), ALWAR AND DELETION OF SAID ADDITION HAS NOT ERRED IN LAW AS WELL AS THE FACTS AND CIRCU MSTANCES. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD. CIT (A) LEGALLY AND FACTUALLY ERRED IN DISMISS THE REQUEST TO CANCEL PENALTY NOTICE U/S 271(1)(C) ISSUED BY LD. AO AS THE APPELL ANT DID NOT FURNISH ANY INACCURATE PARTICULARS OF INCOME. 4. DETAIL GROUNDS OF CROSS OBJECTION AND RELEVANT DOCU MENTS ARE SEPARATELY ATTACHED. 5. THAT THE RESPONDENT CRAVES LEAVE TO ADD, AMEND OR A LTER THE GROUNDS OF CROSS OBJECTION ON OR BEFORE THE DATE TH E APPEAL IS FINALLY HEARD FOR DISPOSAL. 6 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. 5. GROUND NO. 1 IS AGAINST CONFIRMATION OF ADDITION UNDER SECTION 68 OF THE ACT OF UNSECURED LOAN OF RS. 80,00,000/-. 6. GROUND NO. 2 IS IN SUPPORT OF THE ORDER OF LD. C IT (A) WHICH DOES NOT REQUIRE ADJUDICATION. 7. GROUND NO. 3 IS AGAINST INITIATION OF PENALTY PR OCEEDINGS. THE SAME BEING PRE- MATURE, NEEDS NO ADJUDICATION. 8. GROUND NOS. 4 & 5 ARE GENERAL IN NATURE. 9. THE ONLY EFFECTIVE GROUND IN THE CROSS OBJECTION IS AGAINST ADDITION MADE AND SUSTAINED UNDER SECTION 68 OF THE ACT. THE LD. COU NSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SYNOPSIS. TH E SUBMISSIONS OF THE ASSESSEE ARE REPRODUCED AS BELOW :- IN THE INSTANT CASE, EX-PARTE ASSESSMENT WAS MA DE U/S 144. THEREAFTER, ADDITIONAL EVIDENCE WAS FILED BEFORE CI T (A). THE ISSUE WAS EXAMINED DURING THE REMAND AS WELL. PERUSAL OF THE REMAND REPORT AS WELL AS ORDER OF THE CIT (A) SHOWS THAT THE ADDITIO N HAS BEEN SUSTAINED SOLELY DUE TO NON FILING OF THE BANK STATEMENTS. IT IS IMPORTANT TO NOTE THAT IDENTITY OF THE CREDIT OR HAS NOT BEEN DISPUTED. UNDER THE FACTS, IT IS IMPORTANT TO NOTE THAT THE CREDITOR IS THE SAME PERSONS, WHO ARE PROMOTERS OF THE COMPANY AND HAVING SUBSCRIBED CAPITAL IN THE COMPANY ITSELF AS ON 31.3 .2009 OF APPROX RS. 12.78 CRORES. THE TRANSACTION OF SUBSCRIPTION OF SH ARE NEVER BEEN DOUBTED ON ACCOUNT OF CREDITWORTHINESS OR GENUINENE SS. ASSESSEE COMPANY IS A PUBLIC LIMITED COMPANY. ITS A CCOUNTS HAVE BEEN AUDITED U/S 44AB OF THE ACT BY THE QUALIF IED CHARTERED 7 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. ACCOUNTANT. IT IS IMPORTANT TO NOTE THAT DURING THE REMAND (REFER PARA 5.6, 5.7 AND 5.8 OF CIT (A) ORDER), THE COMPLETE BO OKS OF ACCOUNTS ALONG WITH VOUCHERS WERE PRODUCED AND EXAMINED BY T HE AO. AFTER EXAMINATION, IT IS STATED THAT BOOKS OF ACCOUNTS AR E VERIFIABLE AND RESULTANTLY, LD. CIT (A) DELETED THE ENTIRE TRADING ADDITION. THE FINDING AND THE ACTION OF THE CIT (A) IN THIS REGARD, HAS A CCEPTED BY THE DEPARTMENT. THE BANK BALANCE HAS ALSO ACCEPTED BY T HE LOWER AUTHORITIES. UNDER THE FACTS TAKING INTO ACCOUNT, THE LEDGER OF THE CREDITORS PRODUCED AS ADDITIONAL EVIDENCE, WHEREIN, THE AMOUN T HAS BEEN SHOWN AS DEPOSITED IN STATE BANK OF INDIA ACCOUNT. IT IS A BASIC CONCEPT OF THE DOUBLE ENTRY SYSTEM THAT IF AMOUNT IS CREDITED IN T HE LEDGER OF MR. RAJESH GUPTA SHOWING DEBITING STATE BANK OF INDIA M EANS THE CORRESPONDING ENTRY IS ENTERED INTO THE STATE BANK OF INDIA. IT IS CLEAR THAT IF BOOKS ARE VERIFIABLE AND BANK BALANCES ARE ACCEPTABLE THEN HOW DOUBT ON OTHER PART OF AN ENTRY CAN BE RAISED. UNDER THE FACTS BEING THE EXISTING SHAREHOLDERS, TH E CREDITWORTHINESS OF THE CREDITORS ARE ADMITTEDLY AC CEPTED BY THE DEPARTMENT AND GENUINENESS OF THE TRANSACTION IS FU RTHER PROVED BY THE FACT THAT LEDGER SHOWN THE RECEIPT FROM BANK AN D BALANCE OF THE BANK HAVE BEEN ACCEPTED AND CORRECT, THEREFORE, MER ELY ON THE GROUND THAT BANK STATEMENT WAS NOT PROVIDED, NO SUCH INFER ENCE CAN BE DRAWN, PARTICULARLY, WHEN SAME COULD NOT BE FURNISH ED DUE TO NON AVAILABILITY ON ACCOUNT OF BANK AND SAME WERE SUPPO RTED BY THE WRITTEN LETTER OF THE BANK. MOREOVER, BEFORE THE CIT (A), VERIFIED COPY FROM TH E BANK OF THE LEDGER, WHEREIN, BANK ENTRIES WERE VERIFIED BY THE BANKERS WAS ALSO FILED BUT WITHOUT ANY COGENT REASON OR EVIDENCE, ME RELY BASED ON SURMISES AND WITHOUT TAKING INTO ACCOUNT, THE IMPOR TANT FACT THAT THESE MONEY HAVE BEEN RECEIVED FROM EXISTING SHAREHOLDERS , WHO HAVE 8 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. SUBSCRIBED THE SIGNIFICANT PORTION OF EQUITY CAPITA L AND BOOKS OF ACCOUNTS FROM VERIFIABLE. UNDER THE FACTS AND CIRCUMSTANCES, ASSESSEE HAS DIS CHARGED HIS BURDEN OF PROVING, NOT ONLY IDENTITY, GENUINENESS O F TRANSACTION BUT ALSO CREDITWORTHINESS OF THE CREDITOR. NOW, EVEN OTHERWISE, WE HAVE FILED COPY OF BANK STA TEMENT, WHEREIN ALL THE ENTRIES ARE VERIFIABLE. UNDER THE FACTS AND CIRCUMSTANCES, LD. CIT (A) HAS ERRED BY SUSTAINING ADDITION OF RS. 80.00 LACS U/S 68 OF THE ACT. 9.1. ON THE CONTRARY, THE LD. D/R OPPOSED THE SUBMI SSIONS. 9.2. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD. THE CONTENTION OF THE ASSESSEE IS THAT THE BANK STATEMENT ETC. NOT MADE AVAILABLE AT THE STAGE OF FIRST APPELLATE AUTHORITY . AFTER CONSIDERING THE TOTALITY OF FACTS, WE DEEM IT PROPER TO RESTORE THE MATTER TO T HE FILE OF AO TO VERIFY THE CLAIM OF THE ASSESSEE AND DECIDE THIS ISSUE DE NOVO. THE CR OSS OBJECTION IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 213/JP/2017 (ASSESSEE ): 10. NOW WE TAKE UP THE PENALTY APPEAL OF THE ASSESS EE. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. IMPUGNED ORDER(S) PASSED U/S. 250/271(1)(C) ARE BAD IN LAW AND ON FACTS BEING AGAINST THE PRINCIPAL OF NATURAL JUS TICE AND FOR MANY MORE OTHER REASONS. 2. UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT (A), ALWAR HAS ERRED IN SUSTAINING THE PENA LTY UNDER SECTION 271(1)(C) AMOUNTING TO RS. 24,72,000/- IMPOSED BY D CIT, CIRCLE-2, ALWAR, WITHOUT APPRECIATING THE MATERIAL FACTS OF T HE CASE. THE 9 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. PENALTY IMPOSED/SUSTAINED BY LD. AO/CIT (A) IS ILLE GAL, EXCESSIVE OR UNJUSTIFIED. 3. UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT (A) ALWAR HAS ERRED IN SUSTAINING THE PENAL TY UNDER SECTION 271(1)(C) WITHOUT APPRECIATING THE CONTENTS OF THE ADDITIONAL EVIDENCE FURNISHED UNDER RULE 46A DURING THE APPELL ATE PROCEEDINGS. 4. THAT THE APPELLANT CRAVES YOUR INDULGENCE TO ADD, A MEND OR ALTER ALL OR ANY GROUNDS OF APPEAL BEFORE OR AT THE TIME OF H EARING. 11. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGA INST CONFIRMING THE PENALTY OF RS. 24,72,000/- MADE BY AO UNDER SECTION 271(1)(C) OF THE IT ACT. 11.1. SINCE WE HAVE IN QUANTUM PROCEEDINGS IN ASSES SEES CROSS OBJECTION RESTORED THE ISSUE RELATING TO THIS GROUND TO THE FILE OF TH E AO FOR FRESH DECISION, THEREFORE, THE ISSUE OF LEVY OF PENALTY UNDER SECTION 271(1)(C ) OF THE ACT, IS ALSO RESTORED TO THE FILE OF THE AO WITH THE DIRECTION TO DECIDE THIS IS SUE DE NOVO. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 12. IN TOTALITY, APPEAL OF THE REVENUE IS DISMISSED , CROSS OBJECTION OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND APPE AL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 24.07.20 17. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 24/07/2017. DAS/ 10 ITA NO. 305/JP/2014, CO 41/JP/2014 & ITA 213/JP/201 7 M/S. SAND PLAST INDIA LIMITED, ALWAR. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT/DCIT CIRCLE-2, ALWAR. 2. THE RESPONDENT M/S. SAND PLAST INDIA LTD., ALWA R. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 305/JP/2014, CO 41/JP/2014 & 213/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR