M/s. Vikram Plastics, Panchmahal V. The Income tax Officer, Ward-2, Godhra

ITA 3068/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0528 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-09-2016
• Assessment Year: 1998-1999
• Appeal Filed On: 24-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK SUTARIA
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NOS: 3067 & 3068/AHD/2013 (ASSESSMENT YEARS: 1996-97 & 1998-99) M/S. VIKRAM PLASTICS 501- C, GIDC HALOL-389350 DIST: PANCHMAHALS V/S INCOME TAX OFFICER, WARD- 2, GODHRA (APPELLANT) (RESPONDENT) PAN: AABFV1345C APPELLANT BY : SHRI M.K. PATEL, AR RESPONDENT BY : SHRI DEEPAK SUTARIA, SR. D.R . ( )/ ORDER DATE OF HEARING : 23-09-2016 DATE OF PRONOUNCEMENT : 26 -09-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. ITA NOS. 3067 & 3068/AHD/2013 ARE APPEALS BY THE AS SESSEE DIRECTED AGAINST TWO SEPARATE ORDERS OF THE LD. CIT(A)-VI, B ARODA DATED 29.10.2013 PERTAINING TO A.Y. 1996-97 & 1998-99. ITA NOS. 306 7 & 3068/AHD/2013 . A.YS. 1996-9 7 & 1998-99 2 2. IN BOTH THESE APPEALS THE ASSESSEE IS AGGRIEVED BY THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT, THOUGH QUANTUM MAY DIFFER . 3. BOTH THESE APPEALS WERE HEARD TOGETHER AND ARE BEIN G DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 4. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE RESPEC TIVE ASSESSMENT ORDER WHEREIN A.Y. 1996-97 DISALLOWANCE OF RS. 60,363/- W AS MADE OUT OF CONVEYANCE EXPENSES AND DISALLOWANCE OF RS. 6,60,00 0/- OUT OF MACHINERY RENT WAS MADE IN A.Y. 1998-99. 5. THE ISSUE RELATING TO THE QUANTUM ADDITIONS TRAVELL ED UP TO THE TRIBUNAL AND THE TRIBUNAL IN ITA NO. 846/AHD/2004 F OLLOWING ITS OWN ORDER IN ITA NO. 3647/AHD/1997 REDUCED THE DISALLOW ANCE OF RS. 60,363/- ON ACCOUNT OF CONVEYANCE EXPENSES TO 1/6 TH OF THE CONVEYANCE EXPENSES AND THE DISALLOWANCE OF RS. 6,6 0,000/- OUT OF MACHINERY HIRE CHARGES WHICH WAS REDUCED TO 4,20,00 0/- BY THE FIRST APPELLATE AUTHORITY WAS CONFIRMED. 6. THUS, THE PENALTY HAS BEEN LEVIED ON THE ADDITIONS SUSTAINED IN A.Y. 1996-97 REGARDING 1/6 TH OF THE CONVEYANCE EXPENSES AND IN A.Y. 1998- 99 RS. 4,20,000/- OUT OF MACHINERY HIRE CHARGES. A PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW SHOWS THAT THE QUAN TUM ADDITIONS WERE MADE EITHER ON AD-HOC BASIS OR ON ESTIMATED BASIS. IN EITHER OF THE CIRCUMSTANCES, PENALTY U/S 271(1)(C) OF THE ACT CAN NOT BE LEVIED. WE, THEREFORE, SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO DELETE THE PENALTY SO LEVIED FROM THE IMPUGNED ASSE SSMENT YEARS. ITA NOS. 306 7 & 3068/AHD/2013 . A.YS. 1996-9 7 & 1998-99 3 7. IN THE RESULT, BOTH THESE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 26 - 09- 201 6. SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD