G-One Agro Products Ltd., Mehsana V. The ACIT, Circle-4, Ahmedabad

ITA 2250/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8843 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 29-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 04-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G C DAXINI
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER I.T.A. NO.2250/AHD/2013 ( / ASSESSMENT YEAR :2009-10) G-ONE AGRO PRODUCTS LTD. PLOT NO.1067 (P), KADI ROAD, CHHATRAL, KALOL, DIST: MEHSANA 382729. VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-4, AHMEDABAD. ! PAN/GIR NO. : AACCG 0245 Q ( ' / APPELLANT ) .. ( #' RESPONDENT ) '$ APPELLANT BY : SHRI PRITESH SHAH, A.R. #'%$ / RESPONDENT BY : SHRI G.C. DAXINI, SR. DR & ' (%) * / DATE OF HEARING 29/03/2017 +,-. %) * / DATE OF PRONOUNCEMENT 31/03/2017 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE/A PPELLANT IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS)- VIII, AHMEDABAD, DATED 26/07/2013 FOR THE ASSESSMEN T YEAR (AY) 2009-10. 2. ASSESSEE/APPELLANT HAS BEEN TAKEN FOLLOWING GROU NDS OF APPEAL: THE LEARNED CIT(A) ERRED IN CONFIRMING THE PENALTY OF RS.1,48,088/- IMPOSED BY AO UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961, WHICH IS REQUESTED TO BE DELE TED. ITA NO.2250/AHD /2013 G-ONE AGRO PRODUCTS LTD. VS. ACIT ASST.YEAR 2009-10 - 2 - 3. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- THE ASSESSEE WHO IS DOING BUSINESS OF MANUFACTURING OF REFINED EDIBLE OIL AND RELATED PRODUCTS HAD FILED ITS RETURN OF IN COME AT RS.70,61,330/- ON 29.09.2009. INCOME OF THE ASSESSEE WAS ASSESSED U/S. 143(3) OF THE INCOME-TAX ACT, 1961 AT RS.75,40,541/- ON 25.11.201 1. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS NOTICED THAT THE ASSESSEE HAS SOLD SLUDGE, RESIDUAL PRODUCT FOR RS.2,63,320/-. ON VERIFICATION OF QUANTITATIVE DETAILS IT WAS NOTICED THAT OPENING BALANCE AVAILABLE WITH ASSESSEE OF SLUDGE WAS OF 24.320 MT. TONES. OUT OF THIS, THE ASSESSEE COMPANY HAS SOLD 8.345 MT. TONES. THER EFORE CLOSING BALANCE OF SLUDGE WAS OF 15.975 MT. TONES. THE AVER AGE RATE OF SALE/COST OF SLUDGE WAS WORKED OUT AT RS.30/- PER. KG. ACCORD INGLY, THE CLOSING STOCK WAS TO BE VALUED AT RS.4,79,250/-. THE ASSESS EE HAS SHOWN CLOSING STOCK OF SLUDGE AT RS. NIL. THEREFORE, CLOSING STOC K WAS SHOWN AT LOWER SIDE BY AMOUNT OF RS.4,79,250/-. ACCORDINGLY AMOUNT OF RS.4,79,250/- WAS ADDED TO THE INCOME OF THE ASSESSEE. PENALTY PR OCEEDINGS U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 WAS INITIATED . 5. SUBMISSION OF THE ASSESSEE WAS NOT FOUND ACCEPTA BLE. FROM QUANTITATIVE DETAILS FURNISHED WITH TAX AUDIT REPOR T IT WAS CLEAR THAT THE ASSESSEE HAS SOLD 8.345 MT. TONES SLUDGE DURING THE YEAR AT THE RATE OF RS. 30/- PER KG. AFTER SALE OF SLUDGE OF 8.345 MT. TONE S, CLOSING STOCK OF SLUDGE AVAILABLE WITH ASSESSEE WAS OF 15.975 MT. TO NES WHICH WAS VALUED ITA NO.2250/AHD /2013 G-ONE AGRO PRODUCTS LTD. VS. ACIT ASST.YEAR 2009-10 - 3 - AT RS.4,79,250/-. THE ASSESSEE HAD NOT SHOWN THIS S LUDGE IN ITS CLOSING STOCK. THEREFORE, AMOUNT OF RS.4,79,250/- WAS ADDED TO THE INCOME OF THE ASSESSEE AS THEY HAD SUPPRESSED THEIR PROFIT BY AMO UNT OF RS.4,79,250/-. THUS, IT WAS VERY MUCH CLEAR THAT THE ASSESSEE HAD NOT OFFERED ITS TRUE AND CORRECT INCOME TO THE DEPARTMENT. HENCE, IN THE OPI NION OF THE ACIT CIRCLE-4, AHMEDABAD, PENALTY OF RS.1,48,088/- @ 100 % OF TAX SOUGHT TO BE EVADED OF LEVIED AGAINST THE ASSESSEE. 6. AGAINST THE SAID ORDER ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LEARNED CIT(A), WHO CONFIRMED THE ORDER OF THE AUTHORITY BELOW. 7. WE HAVE CAREFULLY CONSIDERED THE PENALTY ORDER A ND THE FACTS OF THE CASE AND WRITTEN SUBMISSIONS OF THE APPELLANT AND L EARNED AR STATED THAT THE ASSESSEE HAS NOT CONCEALED ANYTHING BECAUSE EVE RYTHING WAS ON RECORD AND THE AUDITED BALANCE SHEET, QUANTITATIVE DETAILS ETC. THIS WAS A SIMPLE MISTAKE ON THE PART OF ASSESSES. 8. UPON POINTING OUT BY THE AO, THE ASSESSEE IMMEDI ATELY AGREED FOR THE SAME AND ALSO THE ASSESSEE DID NOT FILE APPEAL AGAINST THE ASSESSMENT ORDER. 9. WE ARE OF THE OPINION IN SUCH CASE PENALTY WILL SURVIVE PROVIDED, IF THERE IS ANY TAX SOUGHT TO BE EVADED BUT IN THIS CA SE, THE AO HAS INCREASED THE CLOSING STOCK BUT THERE IS NO PARALLE L INCREASE IN THE NEXT YEARS OPENING STOCK. MEANING THEREBY, THE ASSESSEE S INCOME INCREASED ITA NO.2250/AHD /2013 G-ONE AGRO PRODUCTS LTD. VS. ACIT ASST.YEAR 2009-10 - 4 - IN THE CURRENT YEAR BUT THERE IS NO PARALLEL INCREA SE IN NEXT YEARS OPENING STOCK. THUS, THE ASSESSEE HAS ALREADY PAID THE TAX IN NEXT YEAR. SO PRACTICALLY, THERE IS NOT TAX WHICH HAS BEEN SOUGHT TO BE EVADED, HENCE THE ASSESSEE IS OUT OF THE PURVIEW OF SECTION 271(1 )(C) OF THE INCOME TAX ACT, 1961. 10. APART FROM THIS, WE HAVE SEEN THE PENALTY NOTIC E BUT AO HAS FAILED TO RECORD ADEQUATE SATISFACTION IN THE NOTICE AND A O HAD NOT SATISFIED, WHETHER ASSESSEE HAS CONCEALED THE PARTICULAR INCOM E OR FURNISHED INACCURATE PARTICULARS OF INCOME. 11. THEREFORE, WE ARE OF THE OPINION THAT THIS IS A FIT CASE, WHERE PENALTY SHOULD BE DELETED. ORDER OF THE CIT(A) SET ASIDE AND APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 12. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. THIS ORDER PRONOUNCED IN OPEN COURT ON 31/03/2017 SD/- SD/- IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K IZNHI DQEKJ DSFM;K ( ) 0 1 (PRADIP KUMAR KEDIA) (MAHAVIR PRAS AD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31/03/2017 PRITI YADAV, SR. PS ITA NO.2250/AHD /2013 G-ONE AGRO PRODUCTS LTD. VS. ACIT ASST.YEAR 2009-10 - 5 - !'#$ %$' COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 234) & 5) / CONCERNED CIT 4. & 5) 01 / THE CIT(A)-VIII, AHMEDABAD. 5. 67 8)'34 *34. 2 / DR, ITAT, AHMEDABAD 6. 8 9: ( GUARD FILE. & ' / BY ORDER, # 6)) //TRUE COPY// (/' )* ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD TRUE COPY 1. DATE OF DICTATION 29/03/2017(DICTATION-PAD 3 PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30/03/2017 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S 30/03/2017 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DISPATCH OF THE ORDER