THE DCIT-1(1), Indore V. M/s. Anant Steels Pvt. Ltd., Indore

ITA 256/IND/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5780 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-09-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 21-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: SHRI; S N AGRAWAL
• Section: 143(3); 153A; 68; 132

Judgement Text

ANANT STEELS ITA 256 AND 257 OF 2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER ITA NOS. 256 & 257/IND/2016 A.YS. 2001-02 & 2003-04 DCIT-1(1), INDORE :: APPELLANT VS M/S. ANANT STEELS P. LTD., INDORE PAN AACCA 1283 E :: RESPONDENT REVENUE BY SHRI MOHD. JAVED RESPONDENT BY SHRI S.N. AGRAWAL AND SHRI PANKAJ MOGRA DATE OF HEARING 05.9.2016 DATE OF PRONOUNCEMENT 05.9.2016 O R D E R PER SHRI D.T. GARASIA, JM THESE APPEALS ARE FILED BY THE REVENUE CHALLENGING THE ORDERS DATED 23.11.2015 OF LD. CIT(A)-II, INDORE REGARDING THE ISSUE OF IMPOSITION OF PENALTY U/S 271(1)(C) OF THE I.T. ACT FOR THE ASSESSMENT YEARS 2001-02 & 2003-04, RESPECTIVELY. 2. SHORT FACTS OF THE CASE ARE THAT THE SEARCH U/S 132 OF THE I.T. ACT WAS CONDUCTED ON THE PREMISES OF THE ASSESSEE ON 21 .11.2006. THE ASSESSING OFFICER IN CONSEQUENCES TO THE SEARCH ISS UED NOTICE U/S 153A ANANT STEELS ITA 256 AND 257 OF 2016 2 OF THE ACT AND PASSED ORDERS U/S 153A R.W.S. 143(3) OF THE I.T. ACT. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS SHO WN CREDITS OF RS.15 LACS & 1.90 CRORES FOR THE ASSESSMENT YEARS 2001-02 & 2003-04, RESPECTIVELY, AS SHARE APPLICATION MONEY RECEIVED F ROM THE DIFFERENT PARTIES. THE ABOVE AMOUNTS WERE TREATED AS UNEXPLAI NED U/S 68 OF THE I.T. ACT AND PENALTY PROCEEDINGS WERE INITIATED. TH E ADDITIONS U/S 68 WERE ALSO CONFIRMED BY THE LD. CIT(A). THE ASSESSIN G OFFICER LEVIED PENALTY U/S 271(1)(C) FOR BOTH THE ASSESSMENT YEARS UNDER CONSIDERATION. 3. MATTER CARRIED TO LD. CIT(A) AND LD. CIT(A) ALLO WED THE APPEALS OF THE ASSESSEE. NOW, THE REVENUE IS BEFORE US. 4. BEFORE US, THE LD. DR RELIED UPON THE ORDERS OF THE ASSESSING OFFICER. ON THE OTHER HAND, LD. COUNSEL FOR THE ASS ESSEE, RELYING UPON THE ORDERS OF THE LD. CIT(A), SUBMITTED THAT DURING THE COURSE OF SEARCH ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS FILED COMP LETE DETAILS WITH ITS SUPPORTING PAPERS AS TO JUSTIFY THE GENUINENESS OF THE SHARE CAPITAL RECEIVED BY THE ASSESSEE. THE AMOUNTS OF SHARE CAPI TAL WERE RECEIVED BY THE ASSESSEE THROUGH ACCOUNT PAYEE CHEQUE AND PA N NOS. OF ALL SHARE APPLICANTS HAD ALSO BEEN PROVIDED TO THE ASSE SSING OFFICER. FURTHER, THE AMOUNTS OF SHARE CAPITAL WERE DULY INC ORPORATED IN THE REGULAR BOOKS OF ACCOUNTS MUCH PRIOR TO THE DATE OF SEARCH AND NOTHING INCRIMINATING WAS FOUND DURING THE COURSE OF SEARCH . ITAT, INDORE, ANANT STEELS ITA 256 AND 257 OF 2016 3 CONSIDERING THIS FACTUAL MATRIX, HAS DELETED THE AD DITIONS VIDE ORDER DATED 18.11.2015. THEREFORE, PENALTIES IN THE PRESE NT ASSESSMENT YEARS WERE RIGHTLY DELETED BY THE LD. CIT(A). 5. WE HAVE HEARD RIVAL CONTENTIONS OF BOTH THE PART IES AND PERUSED MATERIAL AVAILABLE ON RECORD. WE FIND THAT ITAT, IN DORE, CONSIDERING THE FACTS & CIRCUMSTANCES AND RIVAL SUBMISSIONS IN LIGH T OF JUDICIAL PRONOUNCEMENTS, DELETED THE QUANTUM ADDITIONS VIDE ORDER DATED 18.11.2015 PASSED IN IT(SS)A NOS.31,28, 29 & 30/IND /2010, WHEREIN THE IDENTITY OF THE CREDITORS AND CREDIT WORTHINESS WAS ESTABLISHED AND THE TRANSACTIONS WERE FOUND TO BE GENUINE. THEREFORE, I N OUR VIEW, PENALTIES CANNOT BE SUSTAINED AND ALSO NO CONTRARY MATERIAL O N RECORD HAS BEEN BROUGHT ON RECORD BY THE REVENUE. WE CONFIRM THE ST AND OF THE LD. CIT(A). 6. IN RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 05.9.2016 . SD/- SD/- (O.P. MEENA) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 05.9.2016 COPY TO: APPELLANT, R6SPONDENT, CIT, CIT(A), CIT/DR , GUARD FILE !VYS!