M/S Remik Trading Co.Pvt.Ltd., Ahmedabad V. The Dy.CIT.,Circle-5, Ahmedabad

ITA 2489/AHD/2010

• Counselvise Citation: 248920514 RSA 2010
• Duration Of Justice: 3 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-09-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 10-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JHANGID
• Assessee Lawyers: KETAN M BHATT
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEM BER M/S. REMIK TRADING CO. PVT. LTD, PRAFUL NIVAS, AMBAWADI BAZAR, AHMEDABAD PAN: AABCR3003L (APPELLANT) VS DCIT, CIRCLE-5, AHMEDABAD (RESPONDENT) ASSESSEE BY: SRI KETAN M. BHATT, A.R . REVENUE BY: SRI J.P. JHANGID, SR.D.R. DATE OF HEARING : 25-09-2013 DATE OF PRONOUNCEMENT : 27-09-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-XXI AHMEDABAD DATED 26-07-2010 CONFIRMING THE PENALTY IMPOSED BY AO U/S. 271(1)(C) OF THE ACT. ITA NO. 2489/AHD/2010 ASSESSMENT YEAR 2006-07 I.T.A NO.2489/AHD/2010 A.Y. 2006-07 PAGE NO M/S REMIK TRADING CO. PVT. LTD VS. DCIT 2 2. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT ASSESSMENT IN THIS CASE WAS COMPLETED U/S. 143(3) O F THE ACT DETERMINING THE TOTAL INCOME OF RS. 70,35,490/-. THE AO MADE ADDIT ION OF RS. 8,99,118 ON ACCOUNT OF COMMISSION EXPENSES, RS. 8,64,909/- ON A CCOUNT OF DISALLOWANCE OF BAD DEBT AND OF RS. 11,65,087/- ON ACCOUNT OF DI SALLOWANCE U/S. 40A(2)(B) OF THE ACT. LD. CIT(A) DELETED THE OTHER ADDITIONS MADE BY AO BUT SUSTAINED ADDITION OF RS. 1,22,499/- ONLY OUT OF CO MMISSION EXPENSES. AFTER THIS, AO LEVIED THE PENALTY U/S. 271(1)(C) OF THE A CT ON THIS SUSTAINED ADDITION ONLY WHICH HAS BEEN CONFIRMED BY LD. CIT(A) ALSO. IN THE MEAN TIME, MATTER IN RESPECT OF THIS SUSTAINED ADDITION OF RS. 1,22,499/- REACHED HONBLE ITAT. THE MATTER WAS RESTORED TO THE FILE OF AO FO R FRESH ADJUDICATION WITH CERTAIN DIRECTIONS. IN THE SET ASIDE PROCEEDINGS, AO ACCEPTED THE EVIDENCE GIVEN BY THE ASSESSEE IN RESPECT OF COMMISSION EXPE NSES AND FOUND THE COMMISSION PAYMENT OF RS. 1,22,499/- AS GENUINE AND ACCEPTED THE RETURNED INCOME SHOWN BY THE ASSESSEE. SINCE AS ON TODAY RE TURNED INCOME SHOWN BY THE ASSESSEE FOR THE A.Y. 2006-07 STANDS ACCEPTED, THERE IS NO CONCEALMENT OF INCOME ON THE PART OF ASSESSEE AND THE PENALTY I MPOSED BY AO AND SUSTAINED BY LD CIT(A) U/S. 271(1)(C) OF THE ACT TH EREFORE DOES NOT SURVIVE AND THE SAME IS HEREBY DELETED. 3. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 27/09/2013 AK I.T.A NO.2489/AHD/2010 A.Y. 2006-07 PAGE NO M/S REMIK TRADING CO. PVT. LTD VS. DCIT 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/ , / ,