M/s. Jay Ambe Finance, Borsad V. The Income tax Officer,Ward-3(4), Petlad

ITA 2207/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9551 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-01-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 30-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Assessee Lawyers: B T THAKKAR
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 2207/AHD/2013 (ASSESSMENT YEAR: 2005-06) M/S. JAY AMBE FINANCE B/41, SILVER POINT, ZANKHLI TALAV, BORSAD, GUJARAT- 388540 V/S INCOME TAX OFFICER, WARD- 3 (4), PETLAD (APPELLANT) (RESPONDENT) PAN: AAEFY6224B APPELLANT BY : SHRI B. T. THAKKAR, AR RESPONDENT BY : SHRI ADITYA SHUKLA, SR. D.R. ( )/ ORDER DATE OF HEARING : 05 -01-201 7 DATE OF PRONOUNCEMENT : 09 -01-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)- I, BARODA DATED 17.07.2013 PERTAINING TO A.Y. 2005- 06. ITA NO. 2207 /AHD/2013 . A.Y. 2005-06 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE RELATES TO T HE LEVY OF PENALTY OF RS. 4,51,570/- U/S. 271(1)(C) OF THE ACT. 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER DATED 04.12.2007 MADE U/S. 144 OF THE ACT WHEREIN DISALLO WANCE OF RS. 57,17,115/- WAS MADE ON ACCOUNT OF CAPITAL INTRODUC ED BY PARTNERS AND UNSECURED DEPOSITS AS PER THE BALANCE SHEET. 4. THE ASSESSEE CHALLENGED THE QUANTUM ADDITIONS BEFOR E THE FIRST APPELLATE AUTHORITY AND THE FIRST APPELLATE AUTHORITY CONFIRM ED THE ADDITION OF RS. 12,18,936/-. THE ORDER OF THE LD. CIT(A) WAS CHALLE NGED BEFORE THE TRIBUNAL AND THE TRIBUNAL VIDE ORDER DATED 12.09.2014 IN ITA NO. 260/AHD/2011 RESTRICTED THE DISALLOWANCE TO RS. 3,95,535/-. 5. WE FIND THAT THE A.O. HAS LEVIED THE PENALTY WHICH WAS CONFIRMED BY THE LD. CIT(A) IN RESPECT OF THE DISALLOWANCES MADE IN THE ASSESSMENT ORDER. 6. BY THE ORDER OF THE TRIBUNAL, THE DISALLOWANCE HAS BEEN REDUCED TO RS. 3,95,535/-. THEREFORE, IN OUR CONSIDERED OPINION, T HE A.O. MUST BE GIVEN A FRESH OPPORTUNITY TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE ORDER OF THE TRIBUNAL IN ITA NO. 260/AHD/2011. WE, THEREFORE, RE STORE THIS ISSUE TO THE FILES OF THE A.O. THE A.O. IS DIRECTED TO DECIDE TH E LEVY OF PENALTY AFRESH IN THE LIGHT OF THE DECISION OF THE TRIBUNAL (SUPRA), AFTER GIVING A REASONABLE AND FAIR OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . ITA NO. 2207 /AHD/2013 . A.Y. 2005-06 3 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 09 - 01- 20 17 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 09/01/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD