Shri Ashwinbhai H. Patel, Surat V. The Asst.CIT.,Circle-3, Surat

ITA 2430/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85532 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 14-09-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 26-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Keywords: Bogus purchase
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER SHRI ASHWIN H. PATEL, 149 SARJAN SOCIETY, ATHWALINES, SURAT PAN: ABGPP5732R (APPELLANT) VS ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-3, SURAT (RESPONDENT) REVENUE BY: SHRI B.L. YADAV, SR.D.R. ASSESSEE BY: NONE DATE OF HEARING : 22-12-2014 DATE OF PRONOUNCEMENT : 09-01-20 15 / ORDER PER : ANIL CHATURVEDI, ACCOUNTANT MEMBER:- THIS APPEAL IS DIRECTED AGAINST THE PENALTY ORDER DATED 30-03-2010 PASSED UNDER SECTION 271(1)(C) WHEREIN PENALTY OF R S. 1,23,290/- WAS LEVIED BY THE AO FOR A.Y. 2005-06. ITA NO. 2430/AHD/2011 ASSESSMENT YEAR 2005-06 I.T.A NO. 2430/AHD/2011 A.Y. 2005-06 PAGE NO SHRI ASHWIN H. PATEL VS. ACIT 2 2. ON THE DATE OF HEARING NONE APPEARED ON BEHALF OF T HE ASSESSEE BUT THE LD. AR HAD FILED WRITTEN SUBMISSIONS. WE THEREFORE PROCEED TO DECIDE THE MATTER EX PARTE QUA THE ASSESSEE ON THE BASIS OF MATERIAL ON RECORD AND THE WRITTEN SUBMISSIONS. 3. IN THE PRESENT CASE PENALTY OF RS. 1,23,290/- WA S LEVIED U/S. 271(1)(C) BY THE AO VIDE ORDER DATED 30/03/2010 ON THE ADDITION OF ACCOUNT OF DISALLOWANCE OF EXPENDITURE (RS. 5,388/ -) AND BOGUS PURCHASE OF RS. 3,03,746/-. IN THE WRITTEN SUBMISSIONS SUBMI TTED BEFORE US, ASSESSEE HAS SUBMITTED THAT IN THE QUANTUM PROCEEDI NGS AGAINST THE ORDER OF LD. CIT(A) DATED 30/01/2009 FOR A.Y. 2005-06, AS SESSEE HAS PREFERRED APPEAL BEFORE HONBLE TRIBUNAL. HONBLE TRIBUNAL IN ITA NO. 767/AHD/2009 ORDER DATED 12/08/2011 ALLOWED THE APPEAL BY DELETI NG THE ADDITIONS. IT WAS THEREFORE SUBMITTED THAT SINCE THE ADDITION ON WHICH PENALTY HAS BEEN LEVIED ITSELF HAS BEEN DELETED BY THE HONBLE TRIBU NAL, THE PENALTY LEVIED U/S. 271(1)(C) DOES NOT SURVIVE AND THEREFORE THE P ENALTY NEEDS TO BE DELETED. THE LD DR RELIED ON THE ORDER OF A.O. AND LD. CIT(A). 4. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L ON RECORD. WE FIND THAT ON THE QUANTUM ADDITIONS MADE WHILE FRAMI NG THE ASSESSMENT UNDER SECTION 143(3) ORDER DATED 17/12/2007, AO VID E PENALTY ORDER DATED 30/03/2010 LEVIED PENALTY FOR RS. 1,23,290/- UNDER SECTION 271(1)(C) OF THE ACT. AGAINST THE ADDITION MADE BY AO, ASSESSEE PRE FERRED APPEAL BEFORE TRIBUNAL. TRIBUNAL VIDE ORDER DATED 12/08/2011 DECI DED THE APPEAL IN FAVOUR OF HE ASSESSEE AND DELETED THE ADDITIONS. S INCE THE ADDITION ON WHICH THE PENALTY U/S. 271(1)(C) WAS LEVIED ITSELF HAS BEEN DELETED, WE ARE OF THE VIEW THAT NO PENALTY ON THE AFORESAID DISALL OWANCE CAN BE MADE. WE THUS DIRECT ITS DELETION. THUS, THIS GROUND IS ALLOWED. I.T.A NO. 2430/AHD/2011 A.Y. 2005-06 PAGE NO SHRI ASHWIN H. PATEL VS. ACIT 3 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (G.C. GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD : DATED 09/01/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,