Gopal Glass Works Ltd., Ahmedabad V. The CIT(A)-2, Ahmedabad

ITA 2674/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8089 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 22-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTOSH KARNANI
• Assessee Lawyers: PAMIL H SHAH

Judgement Text

I .T.A. NO. 2674 /AHD/201 5 ASSESSMENT Y EAR: 20 1 1 - 12 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD SMC BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM ] I.T.A. NO. 2674 /AHD/201 5 ASSESSMENT Y EAR : 20 1 1 - 12 GOPAL GLASS WORKS LTD., ....... ...........APPELLANT 182, GAGAN VIHAR, AHMEDABAD 380 001. [PAN : AAA CG 5599 H ] VS. CO MMISSIONER OF INCOME TAX (APPEALS) - 2 , AHMEDABAD . ............................RESPONDENT APPEARANCES BY: PAMIL H. SHAH FOR THE APPELLANT SANTOSH KARNANI FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 2 1 . 11 .2 017 DATE OF PRONOUNCING THE ORDER : 29 .11 . 2017 O R D E R 1. BY WAY OF THIS APPEAL, THE ASSESSEE HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 23 RD JULY, 2015 PASSED BY THE LD. CIT(A) UPHOLDING PENALTY OF RS.36,474/ - IMPOSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER ) FOR THE ASSESSMENT YEAR 201 1 - 12 . 2. THE RELEVANT MATERIAL FACTS ARE LIKE THIS. THE ASSESSEE WAS DECLINED DEDUCTION U/S.80IA, AMOUNTING TO R S .49,18,577/ - BUT, ON APPEAL , THE ACTION OF THE ASSES SING OFFICER IN SO DECLINING THE DEDUCTION UNDER SECTION 80IA ,WAS REVERSED, IN PRINCIPLE , BY THE LD . CIT ( A ) . ON THE QUALIFICATION OF DEDUCTION, HOWEVER, THE LEARNED CIT ( A ) H ELD THAT CORRECT DEDUCTION WORKS OUT TO RS.48,00,536/ - . THE DIFFERENCE WAS ON ACC OUNT OF NON ALLOCATION OF ADMINISTRATIVE EXPENSES, TO THE ELIGIBLE UNIT. IT WAS IN T HIS BACKDROP THAT THE LEARNED C IT(A) INITIATED , AND IMPOSED THE IMPUGNED PENALTY OF RS.36,474 / - . AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE ME. I .T.A. NO. 2674 /AHD/201 5 ASSESSMENT Y EAR: 20 1 1 - 12 PAGE 2 OF 2 3. I HAVE HEARD THE RIV AL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 4. I HAVE NOTED THAT THE SMALL DIFFERENCE IN QUANTIFICATION OF CLAIM OF DEDUCTION UN D ER SECTION 80IA IS SAID TO BE ON ACCOUNT O F ERROR IN NOT ALLOCATING THE HEAD OFFICE EXPENSES. LOOKING TO THE QUANTUM OF MISTAKEN ALLOCATION ADJUSTMENT VIS - A - VIS OVERALL CLAIM OF DEDUCTION UNDER SECTION 80IA, THE EXPLANATION OF THE ASSESSEE DOES SEEM REASONABLE TO ME AND IT, THEREFORE, MERITS ACCE PTANCE. I HAVE ALSO NOTICED THAT IN SIMILAR SITUATION, A DIVISION BENCH OF THIS TRIBUNAL, IN THE CASE OF ITO VS. SHARDA CONSTRUCTION & INVESTMENT COMPANY [(2014) 50 TXMANN.COM 331 (PUNE)], HAD DELETED T H E RELATED PENALTY. IN VIEW OF THESE DISCUSSIONS, A ND RESPECTFULLY FOLLOWING THE ABOVE JUDICIAL PRECEDENT, I DELETE THE IMPUGNED PENALTY OF R S.36,474/ - . THE ASSESSEE GETS THE RELIEF ACCORDINGLY. 5 . IN THE RESULT , THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 29 TH DAY OF NOVEMBER , 2017. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: AHMEDABAD, THE 29 TH DAY OF NOVEMBER , 2017. PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD