The DCIT, Circle-5, Ahmedabad V. Nirma Limited, Ahmedabad

ITA 2190/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85854 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-03-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 02-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMALENDU VERMA
• Assessee Lawyers: S N SOPARKARSR
• Section: 27

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2190/AHD/2011 / ASSESSMENT YEAR: 2002-03 DCIT, CIRCLE-5, AHMEDABAD NIRMA LIMITED, NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD PAN : AAACN 5350 K ./ ././ ./ ITA NO. 2272/AHD/2011 / ASSESSMENT YEAR: 2002-03 NIRMA LIMITED, PAN : AAACN 5350 K DCIT, CIRCLE-5, AHMEDABAD / // / (APPELLANT) !' !' !' !' / // / (RESPONDENT) REVENUE BY : SHRI VIMALENDU VERMA, CIT - DR ASSESSEE(S) BY : SHRI S.N. SOPARKAR, SR. ADVOCATE #$ % &'(/ // / DATE OF HEARING : 26/03/2015 )* % &'( / // / DATE OF PRONOUNCEMENT: 27/03/2015 +, +, +, +,/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THESE ARE THE CROSS APPEALS FILED BY THE REVENUE AN D THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-XI, AHMEDABAD DATED 17.06.2011 FOR ASSESSMENT YEAR 2002 -03. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSING OFF ICER I.E. DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1(1), AH MEDABAD PASSED AN ORDER U/S 271(1)(C) DATED 31.03.2009 IN THE NAME OF NIRMA CHEMICAL WORKS ITA NO.2190 & 2272/AHD/2011 DCIT VS. NIRMA LIMITED 2002-03 2 LTD VIDE PERMANENT ACCOUNT NO. AAACN 5353 L FOR ASS ESSMENT YEAR 2002- 03. BY THIS ORDER, PENALTY HAS BEEN LEVIED U/S 271 (1)(C) AMOUNTING TO RS.2,33,59,640/- FOR THE CONCEALMENT OF INCOME OF R S.6,54,33,173/-. AGAINST THIS ORDER OF THE ASSESSING OFFICER, NIRMA CHEMICAL WORKS LTD FILED AN APPEAL BEFORE THE CIT(A). THEREAFTER, THE ASSESSING OFFICER ISSUED CORRIGENDUM ORDER U/S 292B OF THE INCOME-TAX ACT ON 07.07.2009, IN WHICH HE MENTIONED THAT NAME AND PERMANENT ACCOUNT NUMBER OF THE ASSESSEE SHOULD BE READ AS NIRMA LTD PA NO. AAAN 5350 K. AGAINST THIS ORDER U/S 292B, NIRMA LTD FILED AN APPEAL BEFORE THE CIT( A). NIRMA LTD ALSO FILED APPEAL AGAINST THE ORIGINAL PENALTY ORDER U/S 271(1 )(C). THE CIT(A) VIDE ORDER DATED 17.06.2011 DISPOSED OF THE APPEAL FILED BY NIRMA CHEMICALS WORKS PVT LTD AND ALSO NIRMA LTD AGAINST THE ORDER U/S 271(1)(C). THE CIT(A) NOTED THAT THE ADDITION OF RS.6,54,33,173/- WAS MADE IN THE ASSESSMENT ORDER OF NIRMA LTD FOR ASSESSMENT YEAR 2 002-03. THE ITAT VIDE ORDER DATED 13.07.2009 IN ITA NO.1245/AHD/2006 DELE TED THE ADDITION. SINCE THE ADDITION ITSELF HAS BEEN DELETED, THE PEN ALTY LEVIED U/S 271(1)(C) CANNOT BE SUSTAINED AND THE SAME WAS CANCELLED. HE, HOWEVER, DISMISSED THE APPEAL FILED BY NIRMA LTD U/S 292B OF THE INCOM E-TAX ACT. THE REVENUE IS IN APPEAL AGAINST THE DELETION OF THE PENALTY BY THE CIT(A) VIDE ITA NO.2190/AHD/2011, WHILE THE ASSESSEE IS IN APPEAL V IDE ITA NO.2272/AHD/2011 AGAINST THE ORDER OF THE CIT(A) WH EREBY HE UPHELD THE ORDER OF THE ASSESSING OFFICER PASSED U/S 292B. 3. WE WILL FIRST DISPOSE OF THE ASSESSEES APPEAL V IDE ITA NO.2272/AHD/2011. 4. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. FROM THE PER USAL OF THE PENALTY ORDER, WE FIND THAT THE ASSESSING OFFICER HAS GIVEN THE DATE OF ASSESSMENT ITA NO.2190 & 2272/AHD/2011 DCIT VS. NIRMA LIMITED 2002-03 3 ORDER, INCOME ASSESSED, INCOME RETURNED AND THE DIS ALLOWANCE OF ACCRUED INTEREST ON DDBS WHICH RESULTED IN THE ADDITION OF RS.6,54,33,173/-. FROM THE ASSESSMENT ORDER OF NIRMA LTD, WE FIND THAT ALL THESE FACTS WERE RELATING TO NIRMA LTD FOR ASSESSMENT YEAR 2002-03. THE ADDIT ION OF RS.6,54,33,173/- BY WAY OF DISALLOWANCE OF ACCRUED INTEREST ON DDBS WAS MADE IN THE HANDS OF NIRMA LTD. THUS, ALL THE FACTS DISCUSSED IN THE ORDER U/S 271(1)(C) WERE UNDISPUTEDLY RELATED TO NIRMA LTD. THE CIT(A) IN HI S ORDER HAS RECORDED THE FINDING THAT A SHOW-CAUSE NOTICE AGAINST THE LE VY OF PENALTY U/S 271(1)(C) WAS ALSO ISSUED AND SERVED UPON NIRMA LTD. THEREFO RE, IT IS OBVIOUS THAT IN THE ORDER U/S 271(1)(C) THERE WAS A TYPOGRAPHICAL M ISTAKE WHILE MENTIONING THE NAME OF THE ASSESSEE AND ITS PERMANENT ACCOUNT NUMBER. THE SAME HAS BEEN RECTIFIED BY THE ASSESSING OFFICER BY ISSUING THE CORRIGENDUM U/S 292B. AFTER CONSIDERING THE FACTS OF THE CASE AND SUBMISSIONS OF BOTH THE SIDES, WE DO NOT FIND ANY INFIRMITY IN THE CORRIGEN DUM ISSUED U/S 292B. FROM THE PERUSAL OF THE ORDER U/S 271(1)(C), IT IS EVIDENT THAT IN SUBSTANCE THIS ORDER WAS AGAINST NIRMA LTD AND ONLY BECAUSE O F TYPOGRAPHICAL ERROR, NAME OF NIRMA CHEMICALS WORKS LTD WAS TYPED. SHOW- CAUSE NOTICE WAS ALSO GIVEN TO NIRMA LTD AND THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE I.E. NIRMA LTD WAS ALSO CONSIDERED BY THE ASSESSING OFFICER IN THE ORDER U/S 271(1)(C). IN VIEW OF ABOVE, WE DO NOT FIND ANY ME RIT IN THE ASSESSEES APPEAL WHICH IS FILED AGAINST THE ORDER OF CIT(A) W HEREIN HE HAS UPHELD THE ORDER PASSED BY THE ASSESSING OFFICER U/S 292B. AC CORDINGLY, ASSESSEES APPEAL VIDE ITA NO.2272/AHD/2011 IS DISMISSED. 5. NOW WE COME TO THE REVENUES APPEAL VIDE ITA NO. 2190/AHD/2011. THE PENALTY U/S 271(1)(C) WAS LEVIED IN RESPECT OF DISALLOWANCE OF ACCRUED INTEREST ON DDBS OF RS.6,54,33,173/-. THE ITAT VID E ITS ORDER IN ITA NO.2280/AHD/2004 DATED 13.07.2009 DELETED THE ADDIT ION. ONCE THE ADDITION IN RESPECT OF WHICH PENALTY U/S 271(1)(C) WAS LEVIED HAS BEEN ITA NO.2190 & 2272/AHD/2011 DCIT VS. NIRMA LIMITED 2002-03 4 DELETED, THE PENALTY CANNOT STAND. ACCORDINGLY, WE UPHOLD THE ORDER OF THE CIT(A) WHEREIN HE DELETED THE PENALTY LEVIED U/S 27 1(1)(C). THUS, THE REVENUES APPEAL IN ITA NO.2190/AHD/2011 IS DISMISS ED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE AS WEL L AS OF THE REVENUE, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 27 TH MARCH, 2015 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 27/03/2015 BIJU T., PS +, % !&- .+-& +, % !&- .+-& +, % !&- .+-& +, % !&- .+-&/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. & #/ / CONCERNED CIT 4. #/ ( ) / THE CIT(A) - X I, AHMEDABAD 5. -23 !& , , / DR, ITAT, AHMEDABAD 6. 34 5$ / GUARD FILE . +,# +,# +,# +,# / BY ORDER, TRUE COPY 6 66 6/ // / 7 7 7 7 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD