M/s. Well Plain Engineering Co., Ahmedabad V. The ACIT.,(OSD),Circle-10, Ahmedabad

ITA 2426/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89349 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 26-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: S N DIVETIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHRI SHAILENDRA KR. YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTA NT MEMBER M/S. WELL PLAIN ENGINEERING CO. 5, SEEMA SOCIETY, ST. XAVIERS ROAD NAVRANGPURA, AHMEDABAD-380009 PAN: AAAFW3072A (APPELLANT) VS ACIT (OSD), CIRCLE-10, AHMEDABAD-09 (RESPONDENT) ASSESSEE BY: SHRI S.N. DIVETIA, A.R. REVENUE BY: SMT. SONIA KUMAR, SR.D.R. DATE OF HEARING : 24-04-2015 DATE OF PRONOUNCEMENT : 30-04-2015 / ORDER PER : SHAILENDRA KR. YADAV, JUDICIAL MEMBER:- THIS APPEAL HAS BEEN FILED BY ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-XVI, AHMEDABAD DATED 07 TH JULY, 2011 ON FOLLOWING GROUNDS:- 1. LD. CIT(A) HAS ERRED IN LAW AND IN FACT IN CONF IRMING THE PENALTY OF RS. 1,55,000/- LEVIED U/S. 271(1)(C) ON ITA NO. 2426/AHD/2011 ASSESSMENT YEAR 2007-08 I.T.A NO. 2426/AHD/2011 A.Y. 2007-08 PAGE NO M/S. WELL PLAIN ENGINEERING CO. VS. ACIT 2 ADDITION OF CREDIT AMOUNT STANDING IN ACCOUNTS OF T HREE TRADE CREDITORS OF AMOUNT OF RS. 5,65,111/- 2. YOUR APPELLANT PRAYS (I) PENALTY LEVIED U/S. 271(1)(C) OF RS. 1,55,0,00/ - BE DEDUCTED/DROPPED. 2. AT THE OUTSET OF HEARING, LD. AR POINTED OUT THAT IN QUANTUM PROCEEDINGS ISSUE HAS BEEN DECIDED IN FAVOU R BY TRIBUNAL D BENCH IN ITA NO. 281/AHD/2011 FOR A.Y. 2007- 08 VIDE PARA 5 OF THIS ORDER WHEREIN TRIBUNAL HELD AS UNDER:- 5. CONSIDERING THE FACTS OF THE CASE NOTED ABOVE I T IS CLEAR THAT THE ASSESSEE HAD CONTINUED TO SHOW THE ADMITTE D AMOUNTS AS LIABILITY IN ITS BALANCE SHEET, THEREFOR E, THE SAME CANNOT BE TREATED AS CESSATION OF LIABILITY. W E ACCORDINGLY, FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF SHRI NITIN S. GARG (SUPRA) SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE ADDITION. 2.1 THIS FACT HAS NOT BEEN DISPUTED BY LD. DR. IN VIEW OF THIS, WE FIND THAT QUANTUM ADDITION HAS BEEN DELETE D BY TRIBUNAL WHICH IS THE BASIS OF PENALTY IN QUESTION. SO, BASE OF PENALTY DOES NOT SURVIVE AT THE MOMENT. ACCORDINGL Y, PENALTY IN QUESTION IS DIRECTED TO BE DELETED. 3. AS A RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE 1. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KR. YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 30/04/2015 AK I.T.A NO. 2426/AHD/2011 A.Y. 2007-08 PAGE NO M/S. WELL PLAIN ENGINEERING CO. VS. ACIT 3 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,