M/s. Aglodiya Diamonds, Palanpur V. The Income tax Officer,Ward-1, Palanpur

ITA 2413/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89664 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 08-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: P M MEHTA WITH SHRI G M THAKOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI ANIL CHATURVEDI ACCOUNTANT MEMBER AND SHRI S.S. GODARA JUDICIAL MEMBER ITA NO . 2413 /AHD/ 2013 A. Y .20 0 6 - 07 M/S. AGLODIYA DIAMONDS, SHAHIBAUG, SHOPPING CENTRE, PALANPUR. PAN: AALFA 0 068M VS ITO WARD - (1), PALANPUR (APPELLANT) (RESPONDENT) REVENUE BY : S HRI V.K. SINGH , SR. D.R. , ASSESSEE(S) BY : SHRI P.M. MEHTA WITH SHRI G.M. THAKOR, A.R. / DATE OF HEARING : 22 / 06 /201 5 / DATE OF PRONOUNCEMENT: 25 / 0 6 /201 5 / O R D E R PER S.S. GODARA , JUDICIAL MEMBER THIS ASSESSEE S APPEAL FOR A.Y. 200 6 - 0 7 , ARISE S FROM ORDER OF CIT(A ) - I, AHMEDABAD, DATED 18.09.2013 PASSED I N CASE NO .CIT(A) - I/WD.1 - PLN/162/2013 - 14 , UPHOLDING PENALTY OF RS.1,70,700/ - IMPOSED BY THE ASSESSING OFFICER , IN PROCEEDINGS UNDER SECTION 271 ( 1 ) (C) OF THE INCOME TAX ACT , 1961, IN SHORT THE ACT . 2. FACT OF T HE CASE ARE IN A NARROW COMPASS. THE ASSESSEE - FIRM IS ENGAGED IN THE BUSINESS OF DOING LABOUR WORK OF DIAMONDS. THE ASSESSING OFFICER FRAMED A REGULAR ASSESSMENT IN ITS CASE ON 22.12.2008 DISALLOWING A SUM OF RS.5,07,286/ - OUT OF LABOUR CHARGES. HE INITIAT ED PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT ITA NO. 2413/ AHD/ 2013 M/S. AGLODIA DIAMONDS FOR A.Y. 2006 - 07 - 2 - ALLEGING CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. THE CIT(A) UPHELD THE SAID DISALLOWANCE IN HIS ORDER DATED 26.11.2010. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE TRIBUNAL. IN THE MEANTIME, TH E ASSESSING OFFICER PASSED PENALTY ORDER DATED 12.3.2012 IMPOSING THE IMPUGNED PENALTY OF RS.1,70,700/ - PERTAINING TO THE AFORESAID DISALLOWANCE AFTER HOLDING IT AS A CASE OF FURNISHING OF INACCURATE PARTICULARS IN CLAIMING EXCESS EXPENSES AT THE ASSESSEE S BEHE ST. THE CIT(A) HAS ALSO AFFIRMED THAT IMPUGNED PENALTY. 3. WE HAVE HEARD BOTH SIDES AND PERUSED THE CASE FILE. THE CASE FILE REVEALS THAT THE TRIBUNAL IN ITA 867/AHD/2011 DECIDED ON 9.1.2015 HAS DELETED THE DISALLOWANCE IN QUESTION ITSELF IN QUANTUM PROC EEDINGS. THE REVENUE FAILS TO POINT OUT ANY EXCEPTION TO THESE FACTS. WE OBSERVE IN THESE CIRCUMSTANCES THAT THE IMPUGNED PENALTY HAS NO LEGS TO STAND IN VIEW OF THE TRIBUNAL S ORDER IN QUANTUM PROCEEDINGS. THE ASSESSEE S SOLE SUBSTANTIVE GROUND IS ACCORDI NGLY ACCEPTED. THE IMPUGNED PENALTY OF RS.1,70,700/ - STANDS DELETED. 4. THE ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON THIS DAY, THE 25 TH JUNE , 201 5 AT AHMEDABAD . SD/ - SD/ - ( ANIL CHATURVEDI ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 25 / 06 / 20 1 5 PRABHAT KR. KESARWANI , SR. P . S . / COPY OF THE ORDER FORWARDED TO : ITA NO. 2413/ AHD/ 2013 M/S. AGLODIA DIAMONDS FOR A.Y. 2006 - 07 - 3 - 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD