The ACIT, Circle -4, Ahmedabad V. Gujarat State Export Corpn. Ltd., Ahmedabad

ITA 246/AHD/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0517 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-11-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 12-01-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C PANDIT
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI T.K.SHARMA, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER DATE OF HEARING:23.11.09 DRAFTED ON:24.11.09 ITA NO.246/AHD/2007 ASSESSMENT YEAR : 2001-02 ACIT CIRCLE-4, AHMEDABAD. VS. GUJARAT STATE EXPORT CORPORATION LTD. GUJARAT CHAMBERS BUILDING, ASHRAM ROAD, AHMEDABAD. PAN/GIR NO. : AAACG 7985 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI M.C.PANDIT SR. D.R. RESPONDENT BY: SHRI URVASHI SHODHAN O R D E R PER N.S.SAINI , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF CIT(APPEALS)- VIII, AHMEDABAD DATED 10.10.2006 IN APPEAL NO.CIT(A )-VIII/AC-4/308/05-06. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT T HE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) HAS ERRED IN LAW AND ON FACTS O F THE CASE IN CANCELLING THE PENALTY OF RS.2,98,088/- LEVIED UNDER SECTION 271(1 )(C) OF THE ACT. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, IN ASSESSMENT FOR THE YEAR UNDER CONSIDERATION, THE LE ARNED ASSESSING OFFICER MADE DISALLOWANCE ON ACCOUNT OF DELAY IN DEPOSIT OF P.F. CONTRIBUTION OF RS.94,952/- AND DISALLOWANCE OF CLAIM OF BAD DEBT OF RS.6,59,25 6/- ON THE GROUND THAT THE ASSESSEE COULD NOT PROVE THAT RELEVANT DEBT HAVE BE COME BAD DURING THE YEAR UNDER CONSIDERATION. THE LEARNED ASSESSING OFFICER ALSO LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT IN RESPECT OF THE ABOV E TWO DISALLOWANCES BY HOLDING THAT THE ASSESSEE WAS GUILTY OF FURNISHING OF INACC URATE PARTICULARS OF INCOME. THE ITA NO .246/AHD/2007 M/S.GUJARAT STATE EXPORT CORPORATION LTD. ASST.YEAR -2001-02 - 2 - LEARNED COMMISSIONER OF INCOME TAX(APPEALS) DELETED THE PENALTY LEVIED UNDER SECTION 271(1)(C) BY HOLDING THAT THE ASSESSEE HAS NOT FURNISHED ANY INACCURATE PARTICULARS OF MATERIAL FACTS AND THE CLAIM OF THE ASSESSEE WAS BASED ON CERTAIN JUDICIAL DECISION AND DISALLOWANCES SO MADE WERE NO T FREE FROM DEBATE. WE FIND THAT LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT POINT OUT ANY ERROR IN THE ORDER OF THE CIT(A). IN OUR CONSIDERED OPINION, THE REVENUE COULD NOT POINT OUT ANY MATERIAL FACT RELEVANT FOR COMPUTATION OF INCOM E FURNISHED BY THE ASSESSEE AS INACCURATE OR FALSE. THUS, IT IS NOT A CASE WHERE T HE CONTRIBUTION TO P.F. CLAIMED BY THE ASSESSEE WAS NOT MADE BY THE ASSESSEE OR THE BA D DEBT CLAIMED BY THE ASSESSEE WAS FALSE. THE DISALLOWANCES WERE MADE BECAUSE THE LEARNED ASSESSING OFFICER TOOK A DIFFERENT VIEW ON THE FACTS DISCLOSED BY THE ASSESSEE THAN THE VIEW ADOPTED BY THE ASSESSEE. IN OUR CONSIDERED OPINION, IN SUCH CIRCUMSTANCES, NO PENALTY UNDER SECTION 27(1)(C) IS EXIGIBLE AND THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) WAS FULLY JUSTIFIED IN DELETING THE SA ME. WE THEREFORE, CONFIRM THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APP EALS) AND DISMISS THE APPEAL OF THE REVENUE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED AT THE CLOSE OF THE HEARING AND IN THE PRESENCE OF PARTIES IN THE COURT ON 23TH NOVEMBER, 2009. SD/- SD/- ( T.K. SHARMA ) ( N.S. SAINI ) JUDICIAL MEMBER A CCOUNTANT MEMBER AHMEDABAD; DATED 23/11/2009 PREPARED AND COMPARED BY : PARAS # COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-VIII, AHMEDABAD. 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD