M/S Ganesh Dass Piara Lal Jain, Ambala City V. The Income Tax Officer, Ambala

ITA 282/CHANDI/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9721 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 30-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 282/CHD/2016 ASSESSMENT YEAR: 2009-10 M/S GANESH DASS PIARA LAL JAIN, VS THE ITO, 375, DEV SAMAJ COLLEGE ROAD, WARD 1, AMBALA CITY. AMBALA. PAN: AAAFG9705C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK GOYAL RESPONDENT BY : SHRI S.K.MITTAL DATE OF HEARING : 27.07.2016 DATE OF PRONOUNCEMENT : 27.07.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS), PANCHKULA DATED 16.01.2016 FOR ASSESSMENT YEAR 2009-10 CHALLENGING THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE INCO ME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSING OFFICER MADE ADDITION OF RS. 3,07,95,467/- IN THE ASSESSMENT ORDER ON ACCOUNT OF UNEXPLAINED PURCHASES/CASH CREDIT. THE LD. CIT(APPEALS) CONFIR MED THE ADDITION. THE ASSESSING OFFICER, ACCORDINGLY, LEVIED 2 THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT ON T HIS ADDITION. 3. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET SUBMITTED THAT THE AFORESAID ADDITION WAS CHALLENGE D BEFORE ITAT CHANDIGARH BENCH IN ITA 83/2013 AND THE TRIBUNAL VIDE ORDER DATED 02.05.2016 DELETED THE EN TIRE ADDITION. COPY OF THE ORDER IS PLACED ON RECORD. THIS FACT IS NOT DISPUTED BY THE LD. DR. 4. AFTER CONSIDERING THE ABOVE SUBMISSIONS, WE ARE OF THE VIEW PENALTY IS NOT LEVIABLE IN THE MATTER. TH E PENALTY WAS LEVIED ON ACCOUNT OF ADDITION MADE FOR UNEXPLAINED PURCHASES/CREDIT OF THE AFORESAID AMOUN T ON WHICH THE TRIBUNAL IN THE CASE OF THE ASSESSEE O N QUANTUM HAS DELETED THE SIMILAR ADDITION. THEREFOR E, VERY BASIS OF THE LEVY OF THE PENALTY HAS DISAPPEAR ED AND DOES NOT EXIST. THEREFORE, NO PENALTY IS LEVIA BLE. WE, ACCORDINGLY, SET ASIDE THE ORDERS OF AUTHORITIE S BELOW AND CANCEL THE PENALTY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH S AINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH JULY,2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD