M/s. Sayaji Steel, Ahmedabad V. The Income tax Officer,Ward-5(4), Baroda

ITA 2437/AHD/2012

• Counselvise Citation: 243720514 RSA 2012
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-12-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 31-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DK MISHR A
• Assessee Lawyers: ANIL R SHAH

Judgement Text

, , , , SMC, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , !' # ' !' # ' !' # ' !' # ' BEFORE SHRI G.C. GUPTA, VICE-PRESIDENT ITA NO.2437/AHD/2012 [ASSTT.YEAR : 2004-2005] M/S.SAYAJI STEEL NH NO.8, KAPURAI CROSSING OPP: SHARADDHA PETROL PUMP BARODA 390 004. PAN : AAPFS 7174 Q /VS. ITO, WARD-5(4) BARODA. ( (( (%& %& %& %& / APPELLANT) ( (( ('(%& '(%& '(%& '(%& / RESPONDENT) )* + , #/ ASSESSEE BY : SHRI ANIL R. SHAH . + , #/ REVENUE BY : SHRI D.K. MISHRA, SR.DR / + *01/ DATE OF HEARING : 10 TH DECEMBER, 2013 234 + *01/ DATE OF PRONOUNCEMENT : 10-1-2014 #5 / O R D E R THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2004-2005 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-V, BARODA DATED 9.8.2012. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS REGARDING VALIDITY OF PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT OF ` 12,563/- ONLY. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ADDITION OF ` 3,50,195/- WAS ADDED BY THE AO ON ACCOUNT OF SO-CAL LED BOGUS ITA NO.2437/AHD/2012 PURCHASES AND OUTSTANDING BALANCE FOR BOGUS PURCHAS ES ETC. THE ASSESSEE WENT IN APPEAL AND THE TRIBUNAL IN THE QUANTUM APPE AL OF THE ASSESSEE VIDE THEIR ORDER DATED 7.8.2009 HAS RESTRICTED THE ADDITION BY WAY OF ESTIMATE AT ONLY ` 35,019/- I.E. 10% OF THE TOTAL ADDITION MADE BY THE AO. ON THIS AMOUNT OF ` 35,019/-, THE AO HAS LEVIED PENALTY OF ` 12,563/- ON THE ASSESSEE. HE SUBMITTED THAT IN IDENTICAL FACT S IN THE GROUP CASES OF THE ASSESSEE, THE SAME HAVE BEEN DELETED IN APPEAL BY THE TRIBUNAL. HE REFERRED TO THE ORDERS OF THE ITAT IN THE GROUP CAS ES VIZ. IN THE CASE OF M/S.SASUDDIN HAJI HUSAIN ALI & SONS. VS. ITO, ITA N O.2438 AND 2453/AHD/2012 ORDER DATED 5.4.2013, M/S.BALDIWALA B ROTHERS VS. ITO, IN ITA NOS.2451 & 2452/AHD/2012 DATED 19.7.2013 AND M/ S.ROLEX TIN WORKS VS. ITO IN ITA NO.2439-2440/AHD/2012 ORDER DA TED 15.3.2013 WHEREIN THE PENALTY LEVIED UNDER SECTION 271(1)(C) WAS CANCELLED BY THE TRIBUNAL. THE LEARNED DR HAS OPPOSED THE SUBMISSIO NS OF THE LEARNED COUNSEL OF THE ASSESSEE. HE SUBMITTED THAT THE FAC TS OF THE CASE OF THE ASSESSEE ARE NOT KNOWN AND THERE MAY BE SOME DIFFER ENCE THEREIN. HE REFERRED TO RELEVANT PORTIONS OF THE ORDERS OF THE AO AND THE CIT(A) IN SUPPORT OF THE CASE OF THE REVENUE. 4. I HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND ALSO THE ORDERS OF THE ITAT, AHMEDABAD BENCH IN THE GROUP CASES OF THE ASSESSEE CITED BY THE ASS ESSEE. I FIND THAT THE ADDITION OF ` 35,019/- WAS SUSTAINED BY THE TRIBUNAL BY WAY OF ES TIMATE ONLY. IN SIMILAR FACTS, THE TRIBUNAL HAS, IN THE G ROUP CASES OF THE ASSESSEE CITED SUPRA, DELETED THE PENALTY. I, BEING IN AGRE EMENT WITH THE DECISIONS OF THE CO-ORDINATE BENCH OF THE TRIBUNAL, AM OF THE VIEW THAT NO PENALTY IN THE FACTS AND CIRCUMSTANCES COULD BE SUSTAINED. ACCORDINGLY THE ITA NO.2437/AHD/2012 PENALTY CONFIRMED BY THE CIT(A) IS CANCELLED AND TH E GROUND OF THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD