M/s. Aarkee Engineers, Ahmedabad V. The Income tax Officer, Ward-2(5), Baroda

ITA 2523/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0513 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-09-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 28-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL R SHAH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 2523/AHD/2013 (ASSESSMENT YEAR: 2001-02) M/S. AARKEE ENGINEERS, 5/B CHETANA SOCIETY, HARIOM NAGAR ROAD, RACE COURSE, BARODA V/S INCOME TAX OFFICER, WARD- 2 (5), BARODA (APPELLANT) (RESPONDENT) PAN: AACFA0034C APPELLANT BY : SHRI ANIL R. SHAH, A.R. RESPONDENT BY : SHRI RAJ DEEP SINGH, SR. D.R . ( )/ ORDER DATE OF HEARING : 19 -09-201 6 DATE OF PRONOUNCEMENT : 20 -09-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-II, BARODA DATED 12.10.2006 PERTAINING TO A. Y. 2001-02. ITA NO. 2523 /AHD/2013 . A.Y. 2001-02 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE L EVY OF PENALTY U/S. 271(1)(C) OF THE ACT WHICH WAS CONFIRMED BY THE LD. CIT(A). 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER MADE U/S. 143(3) OF THE ACT DATED 18.03.2004 WHERE TO THE RET URNED INCOME FOLLOWING ADDITIONS WERE MADE. 1. ON ACCOUNT OF G.P. RS. 6,21,059 /- 2. ON ACCOUNT OF VEHICLE EXPENSES RS. 10,122/- 3. ON ACCOUNT OF OFFICE EXPENSES RS. 8,631/- 4. THE MATTER TRAVELLED UP TO THE TRIBUNAL AND THE TRI BUNAL VIDE ORDER DATED 22/01/2010 IN ITA NO. 1005/AHD/2006 GAVE RELI EF TO THE ASSESSEE WHICH CAN BE UNDERSTOOD BY THE FOLLOWING C HART:- SR. NO. AS PER ROI ADDITIONS AS PER A.O. CIT(A) ITAT PARA ON ESTIMATE BASIS 1 TOTAL INCOME DECLARE 2,12,670 - - - 2 G.P. ADDITION - 6,21,059 6,21,059 2,50,000 3 VEHICLE EXPENSES - 10,122 10,122 10,122 4 OFFICE EXPENSES - 8,631 - - TOTAL 6,39,812 6,31,181 2,60,122 5. THE A.O. HAS LEVIED THE PENALTY IN RESPECT OF THE A DDITIONS MADE IN THE QUANTUM ASSESSMENT PROCEEDINGS WHICH WAS CONFIRMED BY THE LD. CIT(A). 6. THE AFOREMENTIONED CHART SPEAKS FOR ITSELF. THE G.P . ADDITION WAS SUBSTANTIALLY REDUCED, THOUGH, ADDITIONS ON ACCOUNT OF VEHICLE EXPENSES WERE CONFIRMED. CONSIDERING THE AFOREMENTI ONED FACTUAL MATRIX THAT THE ADDITIONS HAVE BEEN MADE EITHER ON ESTIMATED BASIS OR ITA NO. 2523 /AHD/2013 . A.Y. 2001-02 3 ON AD-HOC BASIS, WOULD NOT JUSTIFY THE INVOCATION O F THE PROVISIONS OF SECTION 271(1)(C) OF THE ACT. IN OUR CONSIDERED OPI NION AND THE UNDERSTANDING OF THE LAW, LEVY OF PENALTY U/S. 271( 1)(C) OF THE ACT IS TOTALLY UNJUSTIFIED ON THE FACTS OF THE CASE IN HAN D. WE, ACCORDINGLY, SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO DELETE THE PENALTY SO LEVIED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 20 - 09- 2 016. SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD