Lucky Rice Mills, Kheda V. The Income tax Officer,Ward-3, Nadiad

ITA 2840/AHD/2011

• Counselvise Citation: 284020514 RSA 2011
• Duration Of Justice: 3 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 17-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C MISHRA
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHR I S.S. GODARA , JUDICIAL MEMBER LUCKY RICE MILLS OPP: KHEDA COLLEGE, N.H. 8, KHEDA (DIST: KHEDA) - 387411 PAN: AAAFL7073L (APPELLANT) VS ITO, WARD - 3, NADIAD (RESPONDENT) ASSESSEE BY: S H RI M.K. PATEL , A.R. RE VENUE BY: S H RI D.C. MISHRA , SR. D.R. DATE OF HEARING : 31 - 07 - 2 015 DATE OF PRONOUNCEMENT : 07 - 08 - 2 015 / ORDER P ER : S.S. GODARA , JUDICIAL MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2006 - 07, ARISES FROM ORDER OF THE CIT(A) - IV, BARODA DATED 23 - 08 - 2011 IN APPEAL NO. CAB/IV - N - 82/10 - 11, IN PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT I T A NO . 2840 A HD/20 11 A SSESSMENT YEAR 200 6 - 07 I.T.A NO. 2840 /AHD/20 11 A.Y. 2006 - 07 PAGE NO LUCKY RICE MILLS VS. ITO 2 2. THE ASSESSEE S SOLE SUBSTANTIVE G ROUND CHALLENGES LOWER APPELLATE ORDER UPHOLDING SECTION 271(1)(C) PENALTY OF RS. 36,040/ - ARISING FROM DISALLOWANCE OF LOSS OF RS. 1,07 , 067/ - CLAIMED ON SALE OF DAMAGED RICE. THE ASSESSEE FIRM TRADES IN FOOD GRAINS AND PADDY. THE ASSESSING OFFICER FRAME D A REGULAR ASSESSMENT ON 22 - 12 - 2008 MAKING GROSS PROFIT ADDITION OF RS. 29,83,772 AND THAT OF UNEXPLAINED CASH CRE DIT OF RS. 13,34,299/ - . HE INITIATED SECTION 271(1)(C) PENALTY PROCEEDINGS ALLEGING CONCEALING AND FURNISHING INACCURATE PARTICULARS AT THE ASSESSEE S BEHEST. THE CIT(A) IN ORDER DATED 20 - 01 - 2010 DELETED THE BOTH THE ADDITIONS EXCEPT THAT OF LOSS CLAIM OF RS. 1,07 , 67/ - INCURR ED ON SALE OF DAMAGED RICE TO M /S ASSOCIATED ALCOHAL BEVERAGES, INDORE. THE ASSESSEE HAD PURCHASED THE SAME FOR RS. 3, 13,280/ - AND SOLD IT FOR RS. 2,06213/ - . IT DOES NOT SEEM TO HAVE TAKEN ANY FURTHER REMEDY AGAINST THE CIT(A) ACTION. QUANTUM PROCEEDINGS ACCORDINGLY ATTAINED FINALITY . 3. THE ASSESSING OFFICER THEREAF TER TOOK UP PENALTY PROCEEDING AND PASSED ORDER 03 - 05 - 2010 INTER ALIA HOLDING THAT THE ASSESSEE HAD FURNISHED INACCURATE PARTICULARS OF INCOME IN CLAIMING ABOVE STATED LOSS. HE ACCORDINGLY IMPOSED IMPUGNED PENALTY OF RS. 36,040/ - IN ITS CASE. THE CIT (A) HAS CONFIRMED THE ASSESSING OFFICER S ACTION. 4 . WE HAVE HEARD BOTH THE PARTIES. THE ASSESSEE CLAIMED THE LOSS IN QUESTION ON ACCOUNT SALE OF DAMAGED RICE TO THE INDORE ENTITY (SUPRA). THE SAID BUYER APPEARS TO HAV E DENIED ANY SUCH PURCHASE. THE ASSESSEE S CLAIM WAS THAT THIS RICE SALE WAS THROUGH I TS AGENT. IT GAVE ALL DETAILS THEREOF. WE DO NOT FIND FROM RECORD THAT THE AUTHORITIES BELOW SPECIFICALLY REJECTED THE FACTUM OF ASS ESSEE S RICE IN QUESTION DAMAG E D OR THAT THE SALE WAS NOT MADE THROUGH ITS AGENT . WE OBSERVE IN PECULIAR CIRCUMSTANCES I.T.A NO. 2840 /AHD/20 11 A.Y. 2006 - 07 PAGE NO LUCKY RICE MILLS VS. ITO 3 TH AT THE ASSESSEE S ACT IN CLAIMING THE IMPUGNED LOSS SUFFERS FROM LACK OF SUFFICIENT EVIDENCE ONLY AND NOT THAT OF FURNISHING OF INACCURATE PARTICULAR O F INCOME ATTRACTING PENALTY U/S. 271(1)(C) OF THE ACT. WE QUOTE DECISION OF HON BLE APEX COURT IN CIT VS . RELIANCE PETRO PRODUCT 322 ITR 158 (SC) HOLDING THAT QUANTUM AND PENALTY PROCEEDINGS STAND ON DIFFERENT FOOTING S AND EACH AND EVERY ADDITION IN THE FORMER DOES NOT RESULT IN AUTOMATIC IMPOSITION OF LATTER PENAL ACTION. WE ACCEPT ASSESSEE S ARGUMENTS AND REJECT THOSE OF THE REVENUE FOR DELETING THE IMPUGNED PENALTY OF RS. 36,040/ - IN QUESTION. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 07 - 08 - 2015 SD/ - SD/ - ( ANIL CHATURVEDI ) ( S.S. GODARA ) A CCOUNTATN MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 07 /08 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,