The ITO, Ward-1(2), Surat V. M/s. Gabani Polyster Pvt.Ltd., Surat

ITA 2570/AHD/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50891 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 31-10-2011
• Assessment Year: 1999-2000
• Appeal Filed On: 10-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE S/SHRI D.K.TYAGI, JM AND A. MOHAN ALANKAMON Y, AM. INCOME-TAX OFFICER, WARD 1(2), SURAT. VS. M/S GABANI POLYESTER (P) LTD., 11-A, BAMBAWADI, PATEL INDUSTRIAL ESTATE, KATARGAM, SURAT. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI SAMIR TEKRIWAL, SR.DR RESPONDENT BY:- SHRI HIREN VEPARI, AR DATE OF HEARING : 31/10/2011 DATE OF PRONOUNCEMENT :31.10.2011 O R D E R PER D. K. TYAGI, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 14/07/2009 FOR ASST. YEAR 1999-00 RAIS ING FOLLOWING GROUND :- (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A)-II, SURAT, HAS ERRED IN DIRECTING THE AO TO DELETE THE LEVY OF PENALTY TO RS.5,68,050/- MADE BY A.O. ITA NO.2570/AHD/2009 ASST. YEAR :1999-00 ITA NO.2570/AHD/2009 ASST. YEAR 1999-00 2 2. THE LD. DR SUPPORTED THE ORDER OF AO AND SUBMITT ED THAT LD. CIT(A) HAS WRONGLY DELETED THE PENALTY IMPOSED BY T HE AO. HIS ORDER MAY BE SET ASIDE AND THAT OF AO BE RESTORED. 3. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSESS EE SUBMITTED THAT IN QUANTUM APPEAL OF ASSESSEE THE TRIBUNAL HAS DELETED THE QUANTUM ADDITION MADE BY THE AO VIDE ITS ORDER IN ITA NO.3979/AHD/20 07 FOR ASST. YEAR 1999-00 DATED 9.4.2010 (COPY OF TRIBUNALS ORDER PL ACED ON RECORD). THEREFORE, HE SUBMITTED THAT WHERE QUANTUM IS DELET ED BY THE TRIBUNAL, THERE SHOULD NOT BE ANY PENALTY U/S 271(1)(C) AND H E SUBMITTED THAT LD. CIT(A) HAS RIGHTLY DELETED THE PENALTY, HIS ORDER O F LD. CIT(A) MAY KINDLY BE UPHELD. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT VIDE ITS ORDER IN IT A NO.3979/AHD/2007 ASST. YEAR 1999-00 DATED 9.4.2010 THE TRIBUNAL HAS DELETED THE QUANTUM ADDITION. THEREFORE, WE ARE OF THE CONSIDERED OPINI ON THAT WHERE QUANTUM ADDITION IS DELETED, THERE SHOULD NOT BE ANY PENALT Y U/S 271(1)(C). THE PROPOSITION THAT NO PENALTY UNDER SECTION 271(1)(C) CAN BE LEVIED IF QUANTUM IN RESPECT OF WHICH LEVY OF PENALTY IS PROP OSED, IS DELETED, HAS BEEN HELD BY SEVERAL AUTHORITIES SUCH AS ADDL. CIT VS. BADRI PRASAD KASHI PRASAD (1993) 200 ITR 206 (ALL), PRABHAT OIL TRADER S VS. ITO (1996) 218 ITA NO.2570/AHD/2009 ASST. YEAR 1999-00 3 ITR (AT) 39 ITAT (AHD), CITY DRY FISH CO. VS. CIT ( 1999) 238 ITR 63 (A.P.), CIT VS. MD. BUX SAUKAT ALI (2004) 265 ITR 3 26 (RAJ) AND CIT VS. SHISHPAL (2002) 255 ITR 187 (RAJ). IN VIEW OF A BOVE, WE UPHOLD THE ORDER OF LD. CIT(A) AND DISMISS THE GROUND RAISED B Y THE REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 31.10.2011. SD/- SD/- (A. MOHAN ALANKAMONY) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD, MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 31/10/2010. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER.OTHER MEMBER 31/10/2011 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..