ITO, Ward - 12(3), Kolkata, Kolkata V. M/s. International Seaports (Haldia) Pvt. Ltd., Kolkata

ITA 220/KOL/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70378 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2013
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 10-02-2012
• Court: TRIBUNAL
• Department Lawyers: SNEHOTPAL DUTTA
• Section: 143(3); 115JB

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND ! ' ! ! ' ! ! ' ! ! ' ! , ) [BEFORE SHRI PRAMOD KUMAR, AM & SHRI MAHAVIR SINGH, JM] # # # # /I.T.A NO. 220/KOL/2012 '$% &' '$% &' '$% &' '$% &'/ // / ASSESSMENT YEAR: 2007-08 INCOME-TAX OFFICER, WD-12(3), KOLKATA. VS. M/S. INTERNATIONAL SEAPORTS (HALDIA) PVT. LTD. (PAN:AAACI9468D) ()* /APPELLANT ) (+)*/ RESPONDENT ) DATE OF HEARING: 14.08.2013 DATE OF PRONOUNCEMENT: 14.08.2013 FOR THE APPELLANT: SHRI SNEHOTPAL DUTTA, SR. DR FOR THE RESPONDENT: SHRI SOMNATH GHOSH, ADVOCATE , / ORDER PER MAHAVIR SINGH, JM/ ! ' ! ! ' ! ! ' ! ! ' ! , : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-XIX, KOLKATA IN APPEAL NO.54/CIT(A)-XIX/ITO,WARD-12(3)/KOL/11-12 DATED 21. 11.2011. ASSESSMENT WAS FRAMED BY ITO, WARD-12(3), KOLKATA U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORD ER DATED 31.12.2009. PENALTY IN DISPUTE WAS LEVIED BY ITO, WARD-12(3), KOLKATA U/S. 271(1)( C) OF THE ACT VIDE HIS ORDER DATED 28.06.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE PENALTY LEVIED BY AO U/S. 271(1)(C) OF THE ACT AMOU NTING TO RS.20,99,417/- FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE INCOME WAS ASSES SED BY AO U/S. 115JB R.W.S. 143(3) OF THE ACT. IT MEANS THAT THE ASSESSMENT WAS FRAMED ON TH E BOOK PROFIT AS PER THE BOOKS OF ACCOUNT MAINTAINED BY THE ASSESSEE AS PER COMPANIES ACT WIT H ADJUSTMENT U/S. 115JB OF THE ACT. THE AO INITIATED PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT. THE AO LEVIED PENALTY FOR FURNISHING INACCURATE ARTICULARS OF INCOME AND LEVI ED PENALTY @ 100% ON THE CONCEALED INCOME AT AN AMOUNT OF RS.20,99,417/-. AGGRIEVED, ASSESSE E PREFERRED APPEAL BEFORE CIT(A), WHO DELETED THE PENALTY. AGGRIEVED, REVENUE IS IN APPE AL BEFORE. 2 ITA NO. 220/K/2012 INTERNATIONAL SEAPORTS (HALDIA) PVT. LTD. A. Y 2007-08 4. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ISSUE IS 100% COVERED IN FAVOUR OF ASSESSEE AND AGAINST THE REVENUE BY THE D ECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. NALWA SONS INVESTMENTS LTD. (2010) 327 ITR 543 (DEL) AND TRIBUNALS ORDERS VIZ., (I) ITA NO. 6940 & 6941/MUM/2008 IN THE CASE OF M/S. RUCHI STRIPS & ALLOYS LTD. VS. DCIT FOR AYS 2003-04 AND 2005-06 DATED 21.01.2011, (II) ITA NO. 6559/MUM/2011 IN THE CASE OF BSEL INFRASTRUCTURE REALTY LTD. VS. ACIT FO R AY 2007-08 DATED 13.04.2012, AND (III) ITA NO.1464/KOL/2011 IN THE CASE OF DCIT VS. M/S. R OHIT FERRO TECH LTD. FOR AY 2005-06 DATED 11.06.2013. IN THESE CASES, THE UNANIMOUS V IEW WAS THAT THE ASSESSMENT WAS MADE ON INCOME COMPUTED U/S. 115JB OF THE ACT AND TAX PAID ON INCOME SO COMPUTED, THE AFORESAID ADDITIONS TANTAMOUNT TO CONCEALMENT OF INCOME LEADS TO TAX EVASION OR NOT. THIS HAS BEEN ANSWERED IN NEGATIVE AND NO CONCEALMENT CAN BE ATTR IBUTED EITHER ON ACCOUNT OF FURNISHING OF INACCURATE PARTICULARS OF INCOME OR CONCEALING THE PARTICULARS OF INCOME AND NO PENALTY U/S. 271(1)(C) OF THE ACT COULD BE IMPOSED ON SUCH ASSES SEE. IT WAS EXCPLAINED BY ASSESSEE THAT EVEN HONBLE SUPREME COURT HAS CONFIRMED THE DECISI ON OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. NALWA SONS INVESTMENT LTD. (2012) 2 1 TAXMANN 184 (SC), WHEREIN IT HAS BEEN HELD THAT WHEN ASSESSMENT WAS MADE ON INCOME COMPUTED UNDER SECTION 115JB AND TAX HAD BEEN PAID ON INCOME SO COMPUTED, PENALTY UNDER SECTION 2 71(1)(C) WOULD NOT BE IMPOSED WITH REFERENCE TO ADDITIONS THAT WOULD HAVE BEEN MADE TAKING INTO ACC OUNT CONCEALMENT MADE BY ASSESSEE WHILE MAKING ASSESSMENT UNDER NORMAL PROCEDURE (ASSESSMENT YEAR 2001-02). RESPECTFULLY FOLLOWING THE ABOVE RULLING, WE DISMIS THE REVENUES APEAL. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 6. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- , ! ' ! ! ' ! ! ' ! ! ' ! , (PRAMOD KUMAR) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( - - - -) )) ) DATED : 14TH AUGUST, 2013 ./ '$01 '2 JD.(SR.P.S.) 3 ITA NO. 220/K/2012 INTERNATIONAL SEAPORTS (HALDIA) PVT. LTD. A. Y 2007-08 , 3 ''4 54&6- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT ITO, WARD-12(3), KOLKATA. 2 +)* / RESPONDENT M/S. INTERNATIONAL SEAPORTS (HALDIA) PVT. LTD., KANAK BUILDING, 41, JAWARHARLAL NEHRU ROAD, KOLKATA-700 071. 3 . ',$ ( )/ THE CIT(A) , KOLKATA 4. ',$ CIT, KOLKATA 5 . ='> '$ / DR, KOLKATA BENCHES, KOLKATA +4 '/ TRUE COPY, ,$/ BY ORDER, ! 1 /ASSTT. REGISTRAR .