The ITO, Ward-2(2), Surat V. M/s. Shree M.D. Industries, Surat

ITA 2507/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9989 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-10-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 25-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER. ITA. NO. 2507/AHD/2013 (ASSESSMENT YEAR:2003-04) INCOME-TAX OFFICER, WARD 2(2), ROOM NO.117, 1 ST FLOOR, AAYKAR BHAVAN, MAJURAGATE, SURAT APPELLANT VS. M/S. SHREE M. D. INDUSTRIES, D/137, UMA INDUSTRIAL ESTATE, UDHNA UDHYOGNAGAR, SURAT - 395004 RESPONDENT PAN: AAPFS1075A / BY REVENUE : SHRI PRASOON KABRA, SR. D.R. /BY ASSESSEE : SHRI TUSHAR HEMANI, A.R. /DATE OF HEARING : 25.10.2016 /DATE OF PRONOUNCEMENT : 21.11.2016 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2003-04 A RISES AGAINST THE CIT(A)-II, SURATS ORDER DATED 30.08.2013, PASSED I N CASE NO. CAS- II/44/2011-12 DELETING PENALTY OF RS.90,58,875/-, I N PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961; IN S HORT THE ACT. 2. LD. COUNSEL FOR THE ASSESSEE POINTS OUT AT THE O UTSET THAT THE ASSESSING OFFICER HAD IMPOSED THE IMPUGNED PENALTY OF RS.90,5 8,875/- QUA QUANTUM ITA NO.2507/AHD/2013 (ITO VS. M/S. SHREE M. D. INDU STRIES) A.Y. 2003-04 - 2 - ADDITIONS OF UNEXPLAINED CAPITAL INTRODUCTION BY PA RTNERS AND UNSECURED LOANS OF RS.1,98,50,000/- AND RS.48,00,000/-; RESPECTIVEL Y AS MADE IN THE COURSE OF IMPUGNED QUANTUM ASSESSMENT FRAMED ON 31.12.2008. LD. COUNSEL THEREAFTER STATES THAT THESE QUANTUM ISSUES CAME BEFORE THE TR IBUNAL IN RESPECTIVE APPEALS OF THE PARTIES I.E. REVENUES AND ASSESSEE S ITA NOS. 3401/AHD/2009 & 32/AHD/2010. HE PLACES BEFORE US LD. CO-ORDINATE COMMON ORDER DATED 27.08.2015 REMITTING BOTH QUANTUM ISSUES BACK TO TH E CIT(A) FOR RE- ADJUDICATION. HIS CASE ACCORDINGLY IS THAT THE IMP UGNED PENALTY MUST ALSO FOLLOW THE SUIT. LD. DEPARTMENTAL REPRESENTATIVE D OES NOT DISPUTE ALL THESE DEVELOPMENTS IN QUANTUM APPEALS HEREINABOVE. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL SUBMISSIONS. IT HAS ALREADY COME ON RECORD THAT THIS TRIBUNAL HAS R ESTORED QUANTUM ISSUES BACK TO THE LD. CIT(A) AS STATED IN PRECEDING PARAG RAPHS. WE ACCORDINGLY OBSERVE THAT WE MUST ADOPT THE SAME COURSE OF ACTIO N FOR THE IMPUGNED PENALTY PROCEEDINGS AS WELL IN LARGER INTEREST OF J USTICE. THIS APPEAL IS ACCORDINGLY ACCEPTED FOR STATISTICAL PURPOSES AND T HE IMPUGNED ISSUE OF CORRECTNESS OF 271(1)(C) PENALTY SHALL NOW BE RE-AD JUDICATED AT LD. CIT(A)S END AS PER LAW. 4. THIS REVENUES APPEAL SUCCEEDS FOR STATISTICAL P URPOSES. [PRONOUNCED IN THE OPEN COURT ON THIS THE 21 ST DAY OF NOVEMBER, 2016.] SD/- SD/- (AMARJIT SINGH) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 21/11/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE ITA NO.2507/AHD/2013 (ITO VS. M/S. SHREE M. D. INDU STRIES) A.Y. 2003-04 - 3 - 3. / CONCERNED CIT 4. - / CIT (A) 5. !'# $%% , , / DR, ITAT, AHMEDABAD 6. #() / GUARD FILE. BY ORDER/ , / ,