Deputy Commissioner of Income-tax, Central Circle - 1, Nashik V. M/s. Asian Food Products Ltd, Nashik

ITA 22/PUN/2022

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Central Circle-1, Nashik as the appellant and M/s. Asian Food Products Ltd. as the respondent. The dispute arose from the CIT(A), Pune-12's order which deleted a penalty of Rs. 87,76,380 imposed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2014-2015. The Revenue challenged the CIT(A)'s decision, arguing that the penalty was justified despite the deletion of quantum additions, as they were in the process of appealing the ITAT's earlier decision on the quantum additions to the Hon'ble High Court of Bombay.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137350 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2023
• Appeal Filed By: Department
• Order Result: DismissedDismissed
• Bench Allotted: B
• Next Hearing Date: 18-12-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 06-01-2022
• Other Referred Cases: IT(SS)A No.64/PUN/2017, IT(SS)A No. 70,71,72 & 73/PUN/2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.22/PUN./2022 Assessment Year 2014-2015 The DCIT, Central Circle-1, 2 nd Floor, Sai Shoban Bldg. Near Kendriya Rajaswa Bhavan, Gadkari Chowk, Nashik – 422 002 Maharashtra. vs. M/s. Asian Food Products Ltd., Plot No.25, Gangapur road, Purnawad nagar, Nashik – 422 013 Maharashtra. PAN AAACA8715B (Appellant) (Respondent) For Revenue : Shri M.G. Jasnani For Assessee : -None- Date of Hearing : 19.12.2022 Date of Pronouncement : 04.01.2023 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal for the assessment year 2014-2015, arises against the CIT(A), Pune-12, Pune's order dated 28.10.2021, in Din & Order No.ITBA/APL/S/250/ 2021-22/1036620445(1), involving proceedings under section 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”). 2. Case called twice. None appear’s at the assessee’s behest. It is accordingly proceeded ex-parte. 3. The Revenue raises the following substantive grounds in the instant appeal : 2 ITA.No.22/PUN./2022 M/s. Asian Food Products Ltd., Nashik. 1. “Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-12, Pune was justified in deleting the penalty of Rs.87,76,380/- levied u/s 27l(l)(c) of the Income Tax Act, 1961 merely on the basis of decision of Hon'ble ITAT Pune on Quantum addition as the revenue has not accepted the said order of ITAT, Pune bearing no. IT(SS)A No.64/PUN/2017 & IT(SS)A No. 70,71,72 & 73/PUN/2017 dated 21.06.2021, and is in a process of filing further appeal to Hon'ble High Court of Bombay against the said order. 2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-12, Pune was justified in deleting the penalty of Rs.87,76,380/¬levied u/s.271(1)(c) merely on the basis of Hon'ble ITAT, Pune on quantum addition, without going into the merits of the case. 3. It is humbly prayed to set aside the Order of CIT(A) and restore the Order of the AO. 4. The appellant prays to adduce such further evidence to substantiate his case. 5. The appellant prays leave to add, alter, clarify, amend and or withdraw any grounds of appeal as and when the occasion demands.” 4. Suffice to say, it is already on record in the Revenue’s pleadings itself that this tribunal’s learned 3 ITA.No.22/PUN./2022 M/s. Asian Food Products Ltd., Nashik. coordinate bench has already deleted the corresponding quantum addition(s) itself leaving no legs to stand for the impugned penalty. This is what has formed the sole reason for the learned CIT(A) in para-4 of his order to reverse the Assessing Officer’s penal action in issue herein. Faced with the situation, we reject the Revenue’s instant sole substantive ground in it’s appeal. Ordered accordingly. 5. This Revenue’s appeal is dismissed in above terms. Order pronounced in the open Court on 04.01.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 04 th January, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Pune “B” Bench, Pune 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches Pune.