Prasad International Ltd., Ahmedabad V. The Dy.CIT.,Circle-5, Ahmedabad

ITA 2406/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6720 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-04-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 27-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA SRDR
• Assessee Lawyers: J M TRIVEDI
• Keywords: Difference of opinion

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI T.K. SHARMA, JUDICIAL MEMBER AND SHRI A.K.GARODIA, ACCOUNTANT MEMBER ITA NO.2406/AHD/2010 ASSESSMENT YEAR:2002-03 DATE OF HEARING:29.4.11 DRAFTED:.29.4.11 PRASAD INTERNATIONAL, 601/2 SURYARATH OPP. WHITE HOUSE, PANCHVATI, AHMEDABAD PAN NO.AAACP9394B V/S. DY. CIT, CIRCLE-5, AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI J.M. TRIVEDI, AR RESPONDENT BY:- SHRI R.K. DHANESTA, SR-DR O R D E R PER T.K. SHARMA, JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER D ATED 21-04-2010 OF COMMISSIONER OF INCOME(APPEALS)-XVI, AHMEDABAD C ONFIRMING THE PENALTY TO THE EXTENT OF RS.36,760/- OUT OF PENALTY OF RS.1.36 LAKH LEVIED BY ASSESSING OFFICER U/S.271(1) OF INCOME-TAX ACT, 1961 FOR ASSESSMENT YEAR 2002-03. ITA 2406/AHD/2010 A.Y. 2002-03 PRASAD INTERNATIONAL V. DCIT CIR-5 ABD PAGE 2 2. AT THE TIME OF HEARING SHRI J.M. TRIVEDI APPEARE D ON BEHALF OF ASSESSEE POINTED OUT THAT ASSESSEE CLAIMED THE DEDU CTION U/S.80HHC OF THE ACT OF RS.31,63,587/- AS PER AUDIT REPORT IN FO RM NO.10CCAC FILED ALONG WITH RETURN OF INCOME. THE ASSESSING OFFICER RE-CALCULATED THE DEDUCTION U/S.80HHC. FOR NON-ALLOWANCE OF DEDUCTION U/S.80HHC IN THE ASSESSMENT ORDER HE LEVIED THE PENALTY U/S.271(1) AMOUNTING TO RS.1.36 LAKH. ON APPEAL IN THE IMPUGNED ORDER LD. C IT(A) RESTRICTED THE SAID PENALTY TO RS.36,760/-. HE POINTED OUT THAT IN THE ASSESSMENT YEAR 2000-01 ALSO ON IDENTICAL FACT PENALTY U/S.271(1)(C ) WAS LEVIED AND WHICH WAS DISALLOWED BY LD. CIT(A) WITH FURTHER APPEAL TH E VIEW TAKEN BY LD. CIT(A) CANCELING THE PENALTY U/S.271(1)(C) FOR THE ASSESSMENT YEAR 2000-01 WAS UPHELD BY ITAT D BENCH IN THE CASE OF PRASAD INTERNATIONAL PVT. LTD. V. ITO IN ITA NO.2761/AHD/2005 FOR ASSESSMENT YEAR 2000-01 VIDE ORDER DATED 22-08-2008. 3. IN VIEW OF THE ABOVE LD. COUNSEL FOR THE ASSESSE E POINTED OUT THAT FOLLOWING THE DECISION OF THIS TRIBUNAL IN ASSESSEE S OWN CASE (SUPRA) FOR ASSESSMENT YEAR 2000-01 PENALTY TO THE EXTENT OF RS .36,760/- CONFIRMED BY LD. CIT(A) IN THE IMPUGNED ORDER BE CANCELLED. 4. SHRI R.K.DHANESTA, SR-DR APPEARED FOR REVENUE VE HEMENTLY SUPPORTED THE ORDER OF LD. CIT(A). 5. HAVING HEARD BOTH THE SIDE WE HAVE CAREFULLY GON E THROUGH THE ORDER OF AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT DEDUCTION U/S.80HHC WAS CLAIMED BY ASSESSEE ON THE BASIS OF C ERTIFICATE IN FORM ITA 2406/AHD/2010 A.Y. 2002-03 PRASAD INTERNATIONAL V. DCIT CIR-5 ABD PAGE 3 NO.10CCAC ISSUED BY CHARTERED ACCOUNTANT. IN THIS C IRCUMSTANCES ON ACCOUNT OF DIFFERENCE OF OPINION NO PENALTY U/S.271 (1) IS LEVIABLE. THEREFORE THE PENALTY TO THE EXTENT OF RS.36,760/- CONFIRMED BY LD. CIT(A) IN IMPUGNED ORDER IS HEREBY CANCELLED. 6. IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 29/04/2011 SD/- SD/- (A.K.GARODIA) (T.K. SHARMA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, DATED : 29/04/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-XVI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD