Dolphin Metal (India) Ltd., Ahmedabad V. The Income tax Officer,Ward-1(4), Ahmedabad

ITA 2724/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9448 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-01-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 22-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NOS.2724AHD/2013 (ASSESSMENT YEAR:2006-07) DOLPHIN METAL (INDIA) LTD., 1780, SURDAS SHETH NI POLE, MANDVI NI POLE, AHMEDABAD-380001 APPELLANT VS. INCOME-TAX OFFICER, WARD 1(4), AHMEDABAD RESPONDENT PAN: AAACD6591J /BY ASSESSEE : NONE /BY REVENUE : SHRI JAMES KURIAN, SR. D.R. /DATE OF HEARING : 09.01.2017 /DATE OF PRONOUNCEMENT : 17.01.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2006-07 ARISES AGAINST CIT(A)-6, AHMEDABADS ORDER DATED 09.10.2013, PASSE D IN APPEAL NO. CIT(A)-VI/ITO.WD-1(4)/61/12-13, CONFIRMING ASSESSIN G OFFICERS ACTION IMPOSING PENALTY OF RS.16,56,800/- IN PROCEEDINGS U NDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. ITA NO. 2724/AHD/2013 (DOLPHIN METAL (INDIA) LTD. VS. ITO) A.Y. 2006-07 - 2 - 2. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES B EHEST. WE THUS TAKE UP THE CASE AND PROCEED TO ADJUDICATE THE MAIN APPEAL ON MERITS. 3. FACTS OF THE CASE APPEAR TO BE IN A NARROW COMPA SS. THE ASSESSEE COMPANY MANUFACTURES AND TRADES IN HOUSEHOLD APPLIA NCES. IT FILED RETURN ON 28.02.2007 STATING INCOME OF RS.5,51,730/-. THE AS SESSING OFFICER COMPLETED A REGULAR ASSESSMENT ON 29.12.2008 MAKING VARIOUS DISALLOWANCES/ADDITION OF DEPRECIATION ON TEMPORARY ERECTION, DEPRECIATION ON FACTORY BUILDING, DEPRECIATION ON LAND AND DISAL LOWANCE OF JOB WORK CHARGES OF RS.20,18,510/-, RS.15,51,529/-, RS.3,03, 129/- AND RS.9,78,004/- RESPECTIVELY BESIDES PURCHASES DISALLOWANCE OF RS.2 1,44,779/-. THE CIT(A) CONFIRMED THE SAID ACTION EXCEPT RESTRICTING THE LA ST ITEM AMOUNT TO RS.10,48,999/- IN QUANTUM LOWER APPELLATE ORDER. Q UANTUM PROCEEDINGS SEEM TO HAVE ATTAINED FINALITY AT THIS STAGE. 4. WE COME TO THE IMPUGNED PENALTY PROCEEDINGS NOW. THE ASSESSEE DOES NOT APPEAR TO HAVE FILED ANY REPLY THERETO. T HIS MADE THE ASSESSING OFFICER TO HEAVILY RELY UPON QUANTUM FINDINGS TO TR EAT FACTS OF THE INSTANT CASE AS AN INSTANCE OF WILLFUL AND DELIBERATE CONCEALMEN T OF PARTICULARS OF ITS INCOME BY SHOWING BOGUS EXPENSES UNDER THE HEAD DEP RECIATION, PURCHASES AND JOB WORK TO LEVY THE IMPUGNED PENALTY OF RS.16, 56,802/- IN QUESTION. THE CIT(A) CONFIRMS THE SAME IN LOWER APPELLATE FIN DINGS BY AN EX PARTE ORDER. THIS LEAVES THE ASSESSEE AGGRIEVED. 5. WE HAVE HEARD SHRI KURIAN (LEARNED SR. DEPARTMEN TAL REPRESENTATIVE) STRONGLY SUPPORTED THE IMPUGNED PENALTY AS LEVIED B Y BOTH THE LOWER AUTHORITIES. WE NOTICE THAT THE ASSESSEE HAS NOT F ILED REPLY IN PENALTY PROCEEDINGS EXPLAINING ITS BONAFIDE BEFORE THE ASSE SSING OFFICER NOR HAS IT PUT IN APPEARANCE IN THE LOWER APPELLATE PROCEEDING S DESPITE SERVICE OF HEARING NOTICE. IT IS THUS CLEAR THAT THE ASSESSEE HAS FAILED TO INDICATE ANY ITA NO. 2724/AHD/2013 (DOLPHIN METAL (INDIA) LTD. VS. ITO) A.Y. 2006-07 - 3 - IRREGULARITY AND INFIRMITY SO AS TO CHALLENGE THE P ENALTY IN QUESTION. WE THUS DO NOT FIND ANY REASON TO DISTURB THE CIT(A)S ORDE R CONFIRMING ASSESSING OFFICER S ACTION IN QUESTION. 6. THIS ASSESSEES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 17 TH DAY OF JANUARY, 2017.] SD/- SD/- ( PRAMOD KUMAR ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 17/01/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0