The ITO, Ward-8(4), Ahmedabad V. Vikas Pipes Pvt.Ltd., Ahmedabad

ITA 287/AHD/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1897 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-02-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 29-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH (BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND BHAVNESH SAINI, JUDICIAL MEMBER) ITA NO.287AHD/2009 [ASSTT. YEAR : 2003-2004] ITO, WARD-8(4) AHMEDABAD. VS. VEEKAS PIPES P. LTD. 6, CHANKYA, 2 ND FLOOR, NR.DINESH HALL, ASHRAM ROAD AHMEDABAD. PAN : AAACV 7169G (APPELLANT) (RESPONDENT) REVENUE BY : SHRI R.K. DHANESTA ASSESSEE BY : SHRI M.K. PATEL O R D E R PER G.D. AGARWAL, VICE-PRESIDENT : THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INC OME TAX(APPEALS)- XIV, AHMEDABAD DATED 28.11.2008 ARISING OUT OF THE ORDER OF THE ASSESSING OFFICER PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE REV ENUE IS AGAINST THE CANCELLATION OF PENALTY WHICH WAS LEVIED BY THE AO UNDER SECTION 271(1)(C) OF THE ACT AMOUNTING RS.8,54,000/-. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. IT WAS POINTED BY THE LEARNED COUNSEL T HAT THE PENALTY WAS LEVIED IN RESPECT OF THE ADDITION TO THE GROSS PROF IT MADE BY THE AO ON ESTIMATED BASIS. THE ITAT IN THE QUANTUM APPEAL IN ITA NO.2828/AHD/2006 DATED 23-2-2009 HAS DELETED THE EN TIRE ADDITION MADE BY THE AO. HE THEREFORE SUBMITTED THAT ONCE THE AD DITION IS DELETED THE PENALTY BASED UPON SUCH ADDITION CANNOT SURVIVE. C OPY OF THE ORDER OF THE ITAT DATED 23-2-2009 IS PRODUCED BEFORE US. W E FIND THAT THE ITA NO.287/AHD/2009 -2- PENALTY UNDER SECTION 271(1)(C) WAS LEVIED BY THE A O IN RESPECT OF THE ADDITION TO THE GP MADE BY HIM. THE ITAT IN THE QU ANTUM APPEAL HAS DELETED THE SAID ADDITION. ONCE THE ADDITION IS DE LETED THE PENALTY UNDER SECTION 271(1)(C) IN RESPECT OF SUCH ADDITION CANNO T SURVIVE. WE THEREFORE UPHOLD THE ORDER OF THE CIT(A) WHO CANCEL LED THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT. 4. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 28 TH FEBRUARY, 2011 SD/- SD/- (BHAVNESH SAINI) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 28-02-2011 C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD 1. DATE OF DICTATION : 01-03-2011 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER. : 01-03-2011 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S : 01-03-2011 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT. : 01-03-2011 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER : 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. : 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK. : 04-03-2011 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK. : 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER. : 10. DATE OF DESPATCH OF THE ORDER : ITA NO.287/AHD/2009 -3-