The Spunpipe & Construction Co.(Baroda)Pvt.Ltd., Baroda V. The ACIT.,Circle-4, Baroda

ITA 2897/AHD/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5545 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 15-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: A C SHAH
• Keywords: Rectification of order
• Section: 271(1)(c); 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.2897/AHD/2015 / ASSTT. YEAR: 2008-09 THE SPUNPIPE & CONSTRUCTION CO. (BARODA) PVT.LTD. A/505-506, 5 TH FLOOR, ALKAPURI ARCADE, OPP: HOTEL WELCOME GROUP, RC DUTT ROAD, BARODA. PAN : AAACT 6738 R VS. THE ACIT, CIR.4 BARODA. ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI A.C. SHAH REVENUE BY : SHRI LALIT P. JAIN, SR.DR / DATE OF HEARING : 21/01/2019 / DATE OF PRONOUNCEMENT: 01/02/2019 +,/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF THE LD.CIT(A)-2, BARODA DATED 20.7.2015 PASSED FOR THE ASSTT.YEAR 2008-09. 2. BRIEF FACTS OF THE CASE ARE THAT A PENALTY ORDER UNDER SECTION 271(1)(C) OF THE ACT WAS PASSED ON 25.3.2013. THE LD.AO ISSU ED NOTICE UNDER SECTION 154 FOR RECTIFICATION OF THIS PENALTY ORDER. IN THE OPINION OF THE AO, CERTAIN REASONS INCORPORATED IN PARA 3.4 OF THE PENALTY ORD ER REQUIRED TO BE EXPUNGED BECAUSE IT IS AN INADVERTENT MISTAKE. AFTER HEARIN G THE ASSESSEE, THE LD.AO HAS MODIFIED THE PENALTY ORDER, AND RECTIFIED THE SAME VIDE ORDER DATED 29.4.2014. DISSATISFIED WITH THE RECTIFICATION, ASSESSEE FILED APPEAL BEFORE THE LD.CIT(A) ITA NO.2897/AHD/2015 2 CONTENDING THAT REASONS GIVEN IN THE PENALTY ORDER CANNOT BE RECTIFIED. IT IS A DEBATABLE ISSUE. HOWEVER, THE LD.CIT(A) WAS NOT SA TISFIED WITH THE CONTENTIONS OF THE ASSESSEE AND DISMISSED ITS APPEA L. IN A WAY, THE LD.CIT(A) HAS CONFIRMED THE RECTIFICATION ORDER. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE CONTENDED THAT ORIGINAL PENALTY ORDER DATE D 25.3.2013 WAS CHALLENGED BEFORE THE LD.CIT(A) AND ULTIMATELY LITI GATION TRAVELLED TO THE TRIBUNAL IN ITA NO.286/AHD/2016. THE TRIBUNAL HAS ALLOWED THIS APPEAL VIDE ORDER DATED 10.4.2018 WHEREIN THE TRIBUNAL HAS DELETED PENALTY BY OBSERVING THAT ADDITION STANDS DELETED. HE PLACED ON RECORD COPY OF THE TRIBUNALS ORDER. 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. SINCE PENALTY IMPUGNED IN THE OR IGINAL PENALTY ORDER HAS BEEN DELETED, RECTIFICATION OF THAT ORDER ON ACCOUN T OF INCORPORATING CERTAIN REASONS, IS JUST AN ACADEMIC EXERCISE IN THE PRESEN T LITIGATION, BECAUSE ALLOWANCE OR DISMISSAL OF THIS APPEAL IS NOT GOING TO AFFECT THE ASSESSEE IN ANY MANNER. PENALTY HAS ALREADY BEEN DELETED. IT IS D ELETED ON ACCOUNT OF DELETION OF QUANTUM ADDITION. IN SUCH SITUATION, THIS APPEA L BECOMES REDUNDANT, AND ACCORDINGLY DISMISSED. 4. IN THE RESULT, APPEAL OF IS DISMISSED AS INDICAT ED ABOVE. ORDER PRONOUNCED IN THE COURT ON 1 ST FEBRUARY, 2019 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/02/2019