M/s. Bhagwati Flour Miling Pvt.Ltd., Ahmedabad V. The Dy.CIT.,Circle-1, Ahmedabad

ITA 2655/AHD/2011

• Counselvise Citation: 265520514 RSA 2011
• Duration Of Justice: 3 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-06-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 24-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH SR D R
• Assessee Lawyers: S N DIVATIA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2655/AHD/2011 / ASSESSMENT YEAR: 2004-05 M/S BHAGWATI FLOUR MILLING PVT LTD 309, CENTURY MARKET, PREM DARWAJA, AHMEDABAD PAN : AAACB 7721 L V/S. DCIT, CIRCLE-1 AHMEDABAD / // / (APPELLANT) ! ! ! ! / // / (RESPONDENT) ASSESSEE(S) BY : SHRI S.N. DIVATIA, AR REVENUE BY : SHRI DINESH SINGH, SR. DR. '# $ %&'/ // / DATE OF HEARING : 29/06/2015 () $ %&' / // / DATE OF PRONOUNCEMENT: 30/06/2015 *+ *+ *+ *+/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS )-6, AHMEDABAD DATED 08.09.2011, PERTAINING TO ASSESSMENT YEAR 200 4-05. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE ASS ESSEE IS AGAINST THE LEVY OF PENALTY OF RS. 5, 64,641/- U/S 271(1)(C) OF THE INCOME-TAX ACT, WHICH WAS PARTLY SUSTAINED BY THE LD. CIT(A). 3. THE FACTS OF THE CASE ARE THAT THE ASSESSING OFF ICER LEVIED PENALTY OF RS. 5,64,641/- IN RESPECT OF FOLLOWING THREE ADDITI ONS:- ITA NO. 2655/AHD/2011 BHAGWATI FLOUR MILLING PVT LTD VS. DCIT FOR AY 2004-05 2 I. SUPPRESSION OF PRODUCTION RS.13,21,439/- II. INTEREST EXPENSES RS. 54,367/- III. ELECTRIC EXPENSES RS. 1,98,107/- ------------------ RS.15,73,913/- =========== 4. THE CIT(A) SUSTAINED THE PENALTY IN RESPECT OF A DDITION OF RS.13,21,439/- ON ACCOUNT OF SUPPRESSION OF PRODUCT ION; HOWEVER, HE DELETED THE PENALTY IN RESPECT OF DISALLOWANCE OUT OF INTEREST EXPENSES AND ELECTRICITY EXPENSES. THE REVENUE HAS ACCEPTED THE ORDER OF THE CIT(A) WHILE THE ASSESSEE IS IN APPEAL AGAINST THE PENALTY SUSTAINED BY THE CIT(A) IN RESPECT OF ADDITION OF RS.13,21,439/- ON ACCOUNT OF SUPPRESSION OF PRODUCTION. 5. AT THE TIME OF HEARING BEFORE US, IT WAS POINTED OUT BY THE LD. COUNSEL THAT, IN THE QUANTUM APPEAL, THE ITAT DELETED THE A DDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUPPRESSION OF PROD UCTION AMOUNTING TO RS.13,21,439/- VIDE ITA NO.164/AHD/2009 COPY OF O RDER DATED 13.07.2012 IS PLACED ON RECORD. WHEN THE ADDITION IN RESPECT OF WHICH THE PENALTY IS SUSTAINED BY THE CIT(A) HAS BEEN DELETED BY THE ITA T, THE PENALTY IN RESPECT OF SUCH ADDITION CANNOT SURVIVE. ACCORDINGLY, WE D ELETE THE PENALTY IN RESPECT OF ADDITION OF RS.13,21,439/- MADE ON ACCOU NT OF SUPPRESSION OF PRODUCTION. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 30/06/2015 BIJU T., PS ITA NO. 2655/AHD/2011 BHAGWATI FLOUR MILLING PVT LTD VS. DCIT FOR AY 2004-05 3 *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,%/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. % '. / CONCERNED CIT 4. '. ( ) / THE CIT(A) 5. ,12 % , , / DR, ITAT, AHMEDABAD 6. 24 5# / GUARD FILE . *+' *+' *+' *+' / BY ORDER, TRUE COPY 6 66 6/ // / 7 7 7 7 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD