The DCIT, Central Circle-1(3), Ahmedabad V. The Lok Prakashan Ltd., Ahmedabad

ITA 282/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72904 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2014
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 04-02-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 03-02-2011
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV
• Section: 14A

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO. 282/AHD/2011 ASSESSMENT YEAR 2004-05 DCIT, CENTRAL CIRCLE-1(3), AHMEDABAD VS LOK PRAKASHAN LT., GUJARAT SAMACHAR BHAVAN, AHMEDABAD PAN: AAACL2742F (APPELLANT) (RESPONDENT) REVENUE BY : SH. O.P. VAISHNAV, SR. D.R. ASSESSEE(S) BY : SH. S.N. SOPARKAR ALONGWITH URVASHI SHODHAN, AR / // / DATE OF HEARING : 04/02/2014 !' / DATE OF PRONOUNCEMENT : 06/02/2014 #$ #$ #$ #$/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-I, AHMEDABAD DATED 09.12.2010. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT T HE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETING THE LEVY OF P ENALTY U/S 271(1)(C) OF THE ACT BY ASSESSING OFFICER OF RS 7,1 6,22,290/-. ITA NO.282/AHD/2011 LOK PRAKASHAN LTD. VS. DCIT, C.C.-1(3), AHD. FOR A.Y. 2004-05 - 2 - 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECO RD. IN THE INSTANT CASE, PENALTY OF RS 7,16,22,290/- WAS LEVIE D U/S 271(1)(C) IN RESPECT OF THE FOLLOWING ADDITIONS MAD E IN THE ORIGINAL ASSESSMENT. (I) DISALLOWANCE U/S 14A OF THE ACT RS 83,02,342/- (II) SHARES SALE SERVICE CHARGES RS 7,19,147/- (III) BUSINESS DEVELOPMENT EXPENDITURE RS 19,06,22 ,532/- 4. ON APPEAL, THE LD. CIT(A) DELETED THE PENALTY IN ITS ENTIRETY. 5. WE FIND THAT ADDITION OF RS 19,06,22,532/- WAS D ELETED BY THE TRIBUNAL VIDE ITS CONSOLIDATED ORDER DATED 19.11.20 10 IN ITA NUMBERS 470/AHD/2005, 634/AHD/2006, 1500/AHD/2006 A ND 3380/AHD/2007 ON QUANTUM APPEAL. THE TRIBUNAL VIDE SAID ORDER RESTORED THE ADDITION OF RS 7,19,147/- AND RS 83,02,342/- BACK TO THE FILE OF THE ASSESSING OFFIC ER FOR FRESH ADJUDICATION. IN THE FRESH ORDER PASSED IN PURSUAN CE OF THE ABOVE REMAND ORDER, THE ASSESSING OFFICER DID NOT M AKE ANY ADDITION ON ACCOUNT OF SHARES SALE SERVICE CHARGES AND MADE ADDITION OF RS 2,00,000/- U/S 14A OF THE ACT. 6. IT IS AN ESTABLISHED POSITION OF LAW THAT WHEN A DDITION DOES NOT SURVIVE, PENALTY LEVIED IN RESPECT OF THOSE ADDITIO NS CANNOT ITA NO.282/AHD/2011 LOK PRAKASHAN LTD. VS. DCIT, C.C.-1(3), AHD. FOR A.Y. 2004-05 - 3 - SURVIVE ALSO. THEREFORE, THE LD. CIT(A) WAS FULLY JUSTIFIED IN DELETING THE PENALTY. 7. FURTHER, NO ERROR COULD BE POINTED OUT BY THE LD . DR IN RESPECT OF THE FINDING OF THE LD. CIT(A) THAT PENALTY U/S 2 71(1)(C) WILL NOT BE SUSTAINED EVEN IN RESPECT OF THE ADDITION OF RS 2,00,000/- MADE U/S 14A ALSO BECAUSE THE SAID ADDIT ION WAS MADE ON ESTIMATE BASIS ONLY WITHOUT POINTING OUT AN Y SPECIFIC PARTICULARS OF INCOME WHICH WERE FOUND BY THE ASSES SING OFFICER WERE INCORRECT OR ANY PARTICULARS OF INCOME WERE CONCEALED. WE THUS DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) AND ACCORDINGLY, T HE SAME IS CONFIRMED AND THE APPEAL OF THE REVENUE IS DISMISSE D. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON THURSDAY, THE 06 TH OF FEBRUARY, 2014 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 06/02/2014 GHANSHYAM MAURYA GHANSHYAM MAURYA GHANSHYAM MAURYA GHANSHYAM MAURYA, SR. P , SR. P , SR. P , SR. P. .. .S SS S. .. .