The ACIT, Circle-4, Baroda V. M/s. Welspun Projects Ltd.,(Formerly known as MSK Projects (India) Ltd.,), Baroda

ITA 2521/AHD/2014

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9152 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 12-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BIREN SHAH
• Section: 271(1)(c)

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 2521/AHD/2014 ( ASSESSMENT YEAR : 2005-06) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4, BARODA / VS. M/S. WELSPUN PROJECTS LTD. (FORMERLY KNOWN AS MSK PROJECTS INDIA LTD.) 707/708, STERLING CENTRE, R.C.DUTT ROAD, ALKAPURI, BARODA 390007 ./ ./ PAN/GIR NO. : AABCM4107C ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MUDIT NAGPAL, SR.D.R. / RESPONDENT BY : SHRI BIREN SHAH, A.R. DATE OF HEARING 10/12/2018 !'# / DATE OF PRONOUNCEMENT 19/12/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-III, BARODA (CIT(A) IN SHORT), DATED 11.05.2014 ARISING IN THE PENALTY ORD ER DATED 25.03.2013 PASSED BY THE ASSESSING OFFICER (AO) U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961; (THE ACT) CONCERNING ASSESSMENT YEAR 200 5-06. 2. THE REVENUE BY WAY OF ITS GROUNDS OF APPEA L HAS CHALLENGED THE ACTION OF THE CIT(A) IN DELETING PENALTY OF RS.1,34,75,700/- UNDER S. 271(1)(C) OF THE ACT. ITA NO. 2521/AHD/14 [ACIT VS. M/S. WELSPUN PROJECTS LTD.] A.Y. 2005-06 - 2 - 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LEAR NED AR FOR THE ASSESSEE SUBMITTED THAT THE QUANTUM ADDITIONS/DISAL LOWANCES GIVING RISE TO THE IMPOSITION OF PENALTY IN APPEAL HAS BEE N REVERSED BY THE CO- ORDINATE BENCH OF TRIBUNAL IN ITA NO. 1864/AHD/2013 , ORDER DATED 08.10.2018 IN THE QUANTUM PROCEEDINGS. 4. IN VIEW OF THE FACT THAT THE QUANTUM ADDITIONS/D ISALLOWANCES ITSELF DOES NOT SURVIVE AND CEASES TO EXIST HAVING REGARD TO THE APPELLATE ORDER OF THE ITAT IN QUANTUM PROCEEDINGS, THE VERY BASIS FOR IMPOSITION OF PENALTY UNDER S. 271(1)(C) DOES NOT S URVIVE ANY MORE. THEREFORE, THE ACTION OF THE AO TOWARDS IMPOSING PE NALTY IS SET ASIDE AND CANCELLED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP K UMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 19/12/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 19/12/2018