The DCIT, Circle-1, Ahmedabad V. M/s. Adani Wilmar Ltd, Ahmedabad

ITA 2540/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1203 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 29-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ././ ./ ITA NO. 2540/AHD/2013 / // / ASSESSMENT YEAR : 2006-07 DCIT, CIRCLE-1, AHMEDABAD VS M/S. ADANI WILMAR LTD., FORTUNE HOUSE, NR. ADANI HOUSE, MITHAKHALI CROSS ROAD, NAVRANGPURA, AHMEDABAD PAN: AABCA 8056 G / // / (APPELLANT) / // / (RESPONDENT) REVENUE BY : SHRI PRASOON KABRA, SR DR ASSESSEE BY : SHRI P M MEHTA, AR / // / DATE OF HEARING : 11/07/2016 / // / DATE OF PRONOUNCEMENT: 12/07/2016 / // / O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-VI, AHMEDABAD DATED 05.08.2013 FOR ASSESSMENT YEAR 2006-07. 2. THE EFFECTIVE GROUNDS TAKEN BY THE REVENUE READ AS UNDER:- I) THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETI NG PENALTY U/S 271(1)(D) OF RS.22.76 LACS DESPITE THE FACT THAT AN ADDITION OF RS.67.63 LACS WAS MADE TO THE RETURNED VALUE OF FRINGE BENEFITS AS PER ORDER U/S 115WE(3) WHICH WAS ALREADY CONFIRMED BY THE CIT(A). II) THE ASSESSEE HAD NOT TREATED THE ADDITIONAL AMOUNT OF RS.67.63 LACS AS FRINGE BENEFIT IN THE RETURN OF INCOME AND HAD THEREFORE, FURNISHED INACCURATE PARTICULARS OF FRINGE BENEFIT WHICH WAS LIABLE FOR PENALTY U/S 271(1)(D). 3. BRIEFLY STATED THE FACTS ARE - FOR THE YEAR UND ER CONSIDERATION, THE ASSESSMENT U/S 115WE(3) OF THE ACT WAS COMPLETED VI DE ORDER DATED 31.12.2008, DETERMINING TOTAL VALUE OF FRINGE BENEF IT AT RS. (-) 12,39,35,063/- AFTER MAKING ADDITION OF RS.67,63,012/- AS AGAINST ASSESSEES RETURNED VALUE ITA NO. 2540/AHD/2013 DCIT VS. ADANI WILMAR LTD AY : 2006-07 2 OF FRINGE BENEFIT OF RS.1,38,48,770/-. ON FURTHER APPEAL, THE CIT(A) CONFIRMED THE ADDITION SO MADE BY THE LD. AO. 3.1 SUBSEQUENT TO THE CIT(A)S AFORESAID ORDER, PEN ALTY U/S 271(1)(D) OF THE ACT WAS COMPLETED ON 30.03.2012, IMPOSING A PEN ALTY OF RS. 22,76, 429/-. ON FURTHER APPEAL, THE IMPUGNED PENALTY ORDER WAS C ANCELLED BY THE CIT(A) VIDE ORDER DATED 05.08.2013. THE REVENUE, BEING AGG RIEVED, IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE ME, IT WAS POINTED OUT BY THE LD. COUNSEL THAT, IN THE QUANTUM APPEAL, THE TRIBUNAL H AS REMITTED THE MATTER BACK TO THE FILE OF LD. AO TO DECIDE THE ISSUE DE N OVO IN ACCORDANCE WITH THE FACTS AND LAW, VIDE ORDER DATED 06.02.2015 IN ITA N O.3257/AHD/2010 COPY OF THE ORDER IS PLACED ON RECORD. WHEN THE TR IBUNAL HAS SET ASIDE THE ORDER OF THE LD. ASSESSING OFFICER, THE PENALTY MAD E IN RESPECT OF SUCH ORDER CANNOT SURVIVE. THEREFORE, I FIND NO INFIRMITY IN THE ORDER OF CIT(A) WHICH IS UPHELD. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 12 TH JULY, 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (R.P. TOLANI) JUDICIAL MEMBER AHMEDABAD; DATED 12/07/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, TRUE COPY / // / ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD