The DCIT.Circle-1(2), Ahmedabad V. Gujarat State Co.Op. Marketing Federation Ltd., Ahmedabad

ITA 2631/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7191 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 29-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIK UNJ BAGADIYA
• Keywords: Corroborative evidences
• Section: 271(1)(c); 143(3); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 1(2), AHMEDABAD (APPELLANT) VS THE GUJARAT STATE CO - OP. MARKETING FEDERATION LTD., SHAHKAR BHAVAN, RELIEF ROAD, AHMEDABAD PAN: AAAAG2927K (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: SHRI NIK UNJ BAGADIYA, A.R. DATE OF HEARING : 08 - 04 - 2 019 DATE OF PRONOUNCEMENT : 10 - 04 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THE SOLITARY GROUND OF APPEAL OF THE REVENUE IS AGAINST THE DECISION OF LD. CIT(A) - 10, AHMEDABAD IN DELETING THE PENALTY U/S. 271(1)(C) OF THE ACT OF RS. 52 , 60 , 882/ - ON ACCOUNT OF FURNISHING INACCURATE PARTICULARS OF INCOME. I T A NO . 2631 / A HD/20 17 A S S ESSMENT YEAR 2010 - 11 I.T.A NO. 2631 /AHD/20 17 A.Y. 2010 - 11 PAGE NO D CIT VS. THE GUJARAT STATE CO - OP. MARKETING FEDERATION LIMITED 2 2. THE FACT IN BRIEF IS THAT A SSESSEE HAS FILED RETURN OF INCOME DECLARING INCOME AT RS. NIL ON 15 TH OCTOBER, 2010. SUBSEQUENTLY , THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 30 TH AUGUST, 2011. DURING THE COURSE OF ASSESSMENT, THE ASSESSING OFFI CER HAS DISALLOWED THE CLAIM OF DEDUCTION U/S. 80P(2)(D) OF THE ACT IN RESPECT OF INTEREST INCOME FOR R S. 1 , 42 , 50 , 851 EARNED BY THE ASSESSEE ON THE FIXED DEPOSIT MAINTAINED WITH SBI. THE ASSESSING OFFICER HAS ALSO DISALLOWED THE CLAIM OF DEDUCTION U/S. 80 P(2) (C) OF THE ACT IN RESPECT OF AMOUNT OF RS. 27 , 74 , 656/ - AS GO D OWN RENT RECEIVED STATING THAT GOODS S T ORED WERE NOT IN THE NATURE OF COMMODITIES THEREFORE THE RENT RECEIVED WAS NOT ELIGIBLE FOR DEDUCTION U/S. 80P(2) (C) OF THE ACT. THE ASSESSMENT U/S . 143(3) OF THE ACT WAS FINALIZED ON 15TH MARCH, 2013 BY DISALLOWING THE AFORESAID CLAIM OF DEDUCTION AND THE ASSESSING OFFICER HAS ALSO INITIATED PENALTY PROCEEDINGS U/S. 271(1) (C) OF THE ACT. DURING THE COURSE OF PENALTY PROCEEDINGS , THE ASSESSEE EXPLAI NED THERE WAS NEITHER FILING OF INACCURATE PARTICULARS OF INCOME NOR CONCEALMENT OF INCOME AS THE ADDITIONS WERE MADE ON THE BASIS OF DETAIL S SUBMITTED DURING THE CO U R S E OF ASSESSMENT PROCEED INGS. THE ASSESSEE HAS EXPLAINED THAT COMPLETE INFORMATION ALONG WITH SUPPORTING EVIDENCES WERE FURNISHED IN RESPECT OF CLAIM OF DEDUCTION ON THE AFORESAID INCOME, H OWEVER, ITS CLAIM OF DEDUCTION U/S. 80P WAS NOT ACCEPTED BY THE ASSESSING OFFICER. IN VIEW O F THE ABOVE FACTS, THE ASSESS EE STATED THAT IT CANNOT BE HELD GUILTY OF FURNISH ING OF INACCURATE PARTICULARS. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE. THE ASSESSING OFFICER W AS OF THE VIEW THAT CLAIMING DEDUCTION WHICH WERE NOT ALLOWABLE AS PER PROVISION OF THE ACT DEFINITELY FALLS UN DER FURNISHING INACCURATE PARTICULARS OF INCOME, THEREFORE, HE HAS LEVIED PENALTY TO THE AMOUNT OF RS. 52 , 60 , 882/ - U/S. 271(1)(C) OF THE ACT. I.T.A NO. 2631 /AHD/20 17 A.Y. 2010 - 11 PAGE NO D CIT VS. THE GUJARAT STATE CO - OP. MARKETING FEDERATION LIMITED 3 3. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) H AS DELETED THE PENALTY LEVIED A FTE R PLACING RELIANCE ON THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF CIT VS. RELIANCE PETRO PRODUCTS PVT. LTD. 189 TAXMAN 322 (SC) AND THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF JCIT VS. CLASSIC INDUSTRIES PVT. LTD. (2017) 80 TAXMAN.COM 22 0 (SC). 4. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDE R OF ASSESSING OFFICER . ON THE OTHER HAND, THE LD. COUNSEL HAS FURNISHED PAPER BOOK CONTAINING DETAILS AND INFORMATION FURNISHED BEFORE THE ASSESSING OFFICER AND LD. CIT(A) DURING THE COUR SE ASSESSMENT PROCEEDINGS AND APPELLATE PROCEEDINGS. THE LD. COUNSEL HAS SUPPORTED THE DECISION OF LD. CIT(A). 5 . WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD CAREFULLY. THE ASSESSEE IS A REGISTERED CO - OPERATIVE SOCIETY AND IS ENGAGED IN DISTRIB UTIO N OF AGRICULTURAL INPUTS, OUTPUT, OILSEEDS, FOODGRAINS ETC. DURING THE YEAR UNDER CONSIDERATION , THE ASSESSEE HAS FI L E D RETURN OF INCOME DECLARING TOTAL INCOM E AT RS . NIL A FTER CL AIMING DEDUCTION U/S. 80P OF THE AC T TO THE E X TENT O F TOTAL INCOME I.E. RS. 3556745 8/ - FOR THE YEAR UNDER CONSIDERATION . THE ASSESSING OFFICER HAS MADE DISALLOWANCE I.E. DISALLOWANCE OF DEDUCTION CLAIMED U/S., 80P(2)(D) RS. 1,42,50,851/ - AND DISALLOWANCE O F DEDUCTION CLAIMED U/S. 80P(2)(C) RS. 27,74,656/ - VIDE ORDER U/S. 143(3) OF THE ACT PASSED ON 15 TH MARCH, 2013 . AFTER THE AFORESAID DISALLOWANCE , THE ASSESSING OFFICER HAS ASSESSED THE TOTAL INCOME AT RS. NIL AND RAISED DEMAND AT RS. NIL VIDE ORDER U/S . 143(3) DATED 15 TH M ARCH, 2013. WITH THE ASSISTANCE I.T.A NO. 2631 /AHD/20 17 A.Y. 2010 - 11 PAGE NO D CIT VS. THE GUJARAT STATE CO - OP. MARKETING FEDERATION LIMITED 4 OF LD. REPRESENTATIVES, WE HAVE ALSO GONE THROUGH THE PAPER BOOK AND NOTICED FROM COMPUTATION OF INCOME AT PAGE 18 THAT ASSESSEE HAS CLAIMED TOTAL DEDUCTION U/S. 80P TO THE AMOUNT OF RS. 9 , 29 , 52 , 332/ - AS AGAINST GROSS TOTAL INCOME OF RS. 3 , 55 , 67 , 458 / - . HOWEVER, THE ASSESSEE HAS S HOWN NIL INCOME BY CLAIMING DEDUCTION U/S. 80P TO THE EXTENT OF TOTAL I NCOME OF RS. 3 , 55 , 67 ,458/ - . THEREFORE, IT IS CLEAR FROM THE ABOVE FACT THAT EVEN AFTER MAKING DISALLOW ANCE BY THE ASSESSING OFFICER THE ASSESSED INCOME RESULTED TO RS. NIL. THEREFORE, ASSESSED DEMAND COMES TO RS. NIL. WE HAVE ALSO PERUSED THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF RELIANCE PETRO PRODUCT PVT. LTD (2010) 322 ITR (SC) REFERRED BY THE LD. CIT(A) WHEREIN IT IS HELD THAT MERE MAKING OF CLAIM WHICH IS NOT SUSTAINABLE IN LAW WILL NOT AMOUNT TO FURNISHING OF INACCURATE PARTICULARS OF REGA RDING INCOME OF THE ASSESSEE. CONSIDERING THE ABOVE FACT AND DECISION OF HON BLE SUPREME COURT AS RE FERRED ABOVE, WE CONSIDER THAT LD. CIT(A) IS JUSTIFIED IN DELETING THE PENALTY L EV I E D BY T H E ASSESSING OFFICER. THEREFORE , WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE, THEREFORE , THE SAME IS DISMISSED. 6 . IN THE RESULT, THE APPEAL OF THE REVEN UE IS DISMISSED . ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 04 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 10 /04 /2019 I.T.A NO. 2631 /AHD/20 17 A.Y. 2010 - 11 PAGE NO D CIT VS. THE GUJARAT STATE CO - OP. MARKETING FEDERATION LIMITED 5 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,