M/s. Sterling Greenwood Ltd., Ahmedabad V. The Dy. Commissioner of Income Tax, Circle-4(1)(1), Ahmedabad

ITA 2715/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8398 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 20-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 2715/AHD/2016 (ASSESSMENT YEAR: 2010-11) M/S. STERLING GREENWOOD LTD. 1, SUNRISE CENTER, OPP. INDRAPRASTH TOWER, DRIVE-IN CINEMA ROAD, AHMEDABAD-380 054 V/S DCIT CIRCLE-4(1)(1), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AACCS 6819A APPELLANT BY : SHRI ANIL KSHATRIYA, AR RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 12 -04-201 8 DATE OF PRONOUNCEMENT : 16 -04-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-8, AHMEDABAD DATED 26.07.2016 PERTAINING TO A.Y. 2010- 11. ITA NO. 2715 /AHD/2016 . A.Y. 2010-11 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER DATED 16.11.2012 FRAMED U/S. 143(3) OF THE ACT. 4. THE RETURNED INCOME OF THE ASSESSEE AMOUNTING TO RS . 61,38,260/- WAS ASSESSED AT RS. 78,24,590/- AFTER MAKING THE FOLLOW ING ADDITIONS/DISALLWONCES:- (I) DISALLOWANCE OF GRATUITY RS. 1,04,150/- (II) DISALLOWANCE OF DIVIDEND RS. 1,56,006/- (III) DISALLOWANCE OF CONTRIBUTION TO PF/ESIC RS. 2,48,859/- (IV) DISALLOWANCE OUT OF SUNDRY BALANCES WRITTEN OF F RS. 11,77,323/- 5. PENALTY PROCEEDINGS WERE SEPARATELY INITIATED. 6. THE ONLY DISALLOWANCE AGITATED BY THE ASSESSEE BEFO RE THE FIRST APPELLATE AUTHORITY WAS ON ACCOUNT OF CONTRIBUTION TO PF/ESIC AMOUNTING TO RS. 2,48,859/-. THE OTHER DISALLOWANCES WERE NEVER CONT ESTED BEFORE THE FIRST APPELLATE AUTHORITY. THE DISALLOWANCE CONTESTED B EFORE THE FAA WAS DELETED BY HIM VIDE ORDER DATED 23.09.2013. 7. THE ONLY DISALLOWANCES SURVIVED AS NOT AGITATED IN QUANTUM PROCEEDINGS RELATED TO GRATUITY, DIVIDEND AND SUNDRY BALANCES WRITTEN O FF. 8. WE FIND THAT THE GRATUITY WAS ADDED ON ACCOUNT OF T HE ADVERSE OBSERVATION MADE BY THE AUDITORS IN THE AUDIT REPORT. THE DIVID END WAS CLAIMED AS EXEMPT BEING RECEIVED FROM RAJKOT NAGRIK CO-OPERATIVE BANK LTD. AND THE SUNDRY ITA NO. 2715 /AHD/2016 . A.Y. 2010-11 3 BALANCES WRITTEN OFF PERTAINED TO SOME ADVANCES ON ACCOUNT OF SOME REAL ESTATE TRANSACTION. 9. A THOUGHTFUL CONSIDERATION TO THE FACTUAL MATRIX RE LATING TO THESE DISALLOWANCES SHOW THAT THERE WAS NO PARTICULAR WHICH CAN BE TERM ED AS FILING OF INACCURATE PARTICULARS NOR THERE IS ANY ELEMENT OF CONCEALMENT OF ANY INCOME. IN OUR UNDERSTANDING OF THE FACTS AND THE LAW, WE DO NOT F IND THIS TO BE A FIT CASE FOR THE LEVY OF PENALTY U/S. 271(1(C) OF THE ACT. WE A CCORDINGLY SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO D ELETE THE PENALTY SO LEVIED U/S. 271(1)(C) OF THE ACT. 10. APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 16- 04- 20 18 SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 16 /04/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD