Income-tax Officer, V. M/s. Khandge Mehta Associates, Pune

ITA 2291/PUN/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0471 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 26-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAWE
• Assessee Lawyers: NITIN KHARE

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , ! , # $ BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.2291/PN/2014 #& & / ASSESSMENT YEAR : 2008-09 ITO, WARD-9(5), PUNE . / APPELLANT V/S M/S. KHANDGE MEHTA ASSOCIATES, SHOP NO.7, PURSHOTTAM NIWAS, MALI ALI, TALEGAON, PUNE 410 506 PAN : AAHFK1312J . / RESPONDENT / APPELLANT BY : SHRI HITENDRA NINAWE / RESPONDENT BY : SHRI NITIN KHARE / ORDER PER R.K.PANDA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER DATED 15-09-2014 OF THE CIT(A)-V, PUNE RELATING TO ASSESSMENT YEARS 2008-09. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER : 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) WAS JUSTIFIED IN DELETING THE PENA LTY OF RS.19,48,319/- U/S.271(1)(C) OF THE I.T. ACT SINCE THE ASSESSEE HAS WRONGLY CLAIMED DEDUCTION U/S.80IB(10) OF THE I.T . ACT BY FILING INACCURATE PARTICULARS OF INCOME. / DATE OF HEARING :16.11.2016 / DATE OF PRONOUNCEMENT: 16 .11.2016 2 ITA NO.2291/PN/2014 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF BUILDER S/DEVELOPERS. IT FILED ITS RETURN OF INCOME ON 25-09-2008 DECLARING TOTAL INCOME AT NIL AFTER CLAIMING DEDUCTION OF RS.63,05,239/- U/S. 80I B(10) OF THE I.T. ACT. THE ASSESSING OFFICER COMPLETED THE ASSESSMEN T U/S.143(3) ON 28-12-2010 DETERMINING THE TOTAL INCOME AT RS.63,05 ,239/- BY DISALLOWING CLAIM OF DEDUCTION U/S. 80IB(10) ON THE GROUND THAT TWO UNITS HAVE BEEN PURCHASED BY ONE PERSON AND THE CUM ULATIVE AREA IS IN EXCESS OF THE PRESCRIBED LIMIT OF 1500 SQ.FT. T HE ASSESSING OFFICER, THEREAFTER INITIATED PENALTY PROCEEDINGS U/S.271(1) (C) OF THE I.T. ACT. THE QUANTUM APPEAL WAS DECIDED AGAINST THE ASSESSEE BY THE CIT(A). THEREAFTER, THE ASSESSING OFFICER LEVIED P ENALTY U/S.271(1)(C) OF THE I.T. ACT AMOUNTING TO RS.19,48,319/-. 4. IN APPEAL THE LD.CIT(A) DELETED THE PENALTY ON T HE GROUND THAT THE TRIBUNAL HAS ALREADY DECIDED THE ISSUE IN FAVOU R OF THE ASSESSEE IN THE QUANTUM PROCEEDINGS AND HIS PREDECESSOR HAS ALREADY DELETED THE PENALTY LEVIED U/S.271(1)(C) OF THE I.T. ACT. FOR A.Y. 2006-07. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE REVE NUE IS IN APPEAL BEFORE US. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES, PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS RELIED ON BY THE LD. COUNSEL FOR THE ASSESSEE. WE FIND THE ASSESSING OFFICER LEVIED PENALTY U/S.271(1 )(C) OF THE I.T. ACT AMOUNTING TO RS.19,48,319/- ON ACCOUNT OF DISALLOWA NCE OF DEDUCTION U/S.80IB(10) AT RS.63,05,239/-. WE FIND THE CIT(A) CONFIRMED THE DISALLOWANCE OF DEDUCTION U/S.80IB(10 ) AND THE TRIBUNAL VIDE ITA NO.399/PN/2012 ORDER DATED 14-05- 2013 FOR A.Y. 3 ITA NO.2291/PN/2014 2008-09 HAS ALLOWED THE CLAIM OF DEDUCTION U/S.80IB (10) OF THE I.T. ACT. THUS, THE VERY BASIS ON WHICH PENALTY WAS LEV IED DOES NOT SURVIVE. THEREFORE, WE DO NOT FIND ANY INFIRMITY I N THE ORDER OF THE CIT(A) DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S.271(1)(C) OF THE I.T. ACT. ACCORDINGLY, THE OR DER OF THE CIT(A) IS UPHELD AND THE GROUND RAISED BY THE REVENUE IS DISM ISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16-11-2016. SD/- SD/- (VIKAS AWASTHY) (R.K . PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE; DATED : 16 TH NOVEMBER, 2016. ) *#,! -! / COPY OF THE ORDER FORWARDED TO : / BY ORDER , // # % / TRUE COPY // // TRUE COPY // &' % * / SR. PRIVATE SECRETARY *, / ITAT, PUNE 1. / THE APPELLANT 2. / THE RESPONDENT 3. THE CIT (A) - V , PUNE 4. 5. THE CIT-II, PUNE # %%*, *, B BENCH / DR, ITAT, B BENCH PUNE; 6. 2 / GUARD FILE.