Tallboy Stationery Pvt Ltd., CHENNAI V. ACIT, CHENNAI

ITA 307/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95878 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 05-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 04-02-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN IRS
• Assessee Lawyers: G BASKAR
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . . . , ! , ' #$ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ] ./ I.T.A.NO.307/MDS/2015 / ASSESSMENT YEAR : 2008-2009 M/S. TALLBOY STATIONERY P. LTD NO.130, NELSON MANICKAM ROAD, AMINJIKARAI, CHENNAI 600 029 VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(1) CHENNAI 600 034 [PAN AACCT 3483H ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI. G. BASKAR, ADVOCATE /RESPONDENT BY : SHRI. P. RADHAKRISHNAN, IRS, JCIT / DATE OF HEARING : 05-08-2015 / DATE OF PRONOUNCEMENT : 07-08-2015 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-III, CHEN NAI, DATED 27.10.2014 FOR THE ASSESSMENT YEAR 2008-2009. ITA NO.307/MDS/2015 :- 2 -: 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WITH REGARD TO LEVY OF PENALTY U/S.271(1)(C) OF THE ACT. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURE STATIONERY I TEMS AND FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2008-2009 ON 30.09.2008 ADMITTING A LOSS OF @85,30,446/-. THE ASSESSING OF FICER COMPLETED THE ASSESSMENT U/S.143(3) OF THE ACT ON 29.12.2010 DETE RMINING THE TOTAL INCOME AT @54,71,483/- AND PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT WERE INITIATED SEPARATELY. LATER, ORDER U/S.27 1(1)(C) OF THE ACT WAS PASSED BY THE ASSESSING OFFICER ON 01.03.2013 LEVYI NG A PENALTY OF @12,95,349/- BEING MINIMUM PENALTY @100% OF TAX SOU GHT TO BE EVADED BEING THREE ADDITIONS MADE IN THE ORIGINAL A SSESSMENT ORDER SURVIVED I.E. LABOUR CHARGES, PURCHASE OF ASSET AND DEPRECIATION. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). 4. THE COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED T HAT IN THE CASE OF QUANTUM ADDITION, THE TRIBUNAL REVERSED THE DECISION OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND AGREED WIT H THE FINDINGS OF THE ASSESSING OFFICER ON THE ISSUE OF LABOUR CHARGE S AND ON THE OTHER TWO ISSUES, WHICH WAS THE SUBJECT MATTER OF THIS PE NALTY, THE ORDER OF ITA NO.307/MDS/2015 :- 3 -: THE COMMISSIONER OF INCOME TAX (APPEALS) WAS UPHELD . ON THREE ISSUES, THE TRIBUNAL HAD GIVEN ITS FINDINGS AND PEN ALTY WAS LEVIED BY THE ASSESSING OFFICER ON THESE ISSUES ONLY. THE COM MISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT IN VIEW OF THE A DDITION BEING UPHELD BY THE TRIBUNAL, THE ASSESSING OFFICER HAS R IGHTLY LEVIED THE PENALTY. THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) UPHELD THE PENALTY LEVIED BY THE ASSESSING OFFICER. AGAINS T THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. AS SEEN FROM THE FINDINGS OF THE COMMISSIO NER OF INCOME TAX (APPEALS), THE COMMISSIONER OF INCOME TAX (APPEALS) BASED HIS CONCLUSION TO CONFIRM THE PENALTY LEVIED BY THE ASS ESSING OFFICER ON THE REASON THAT QUANTUM ADDITION WAS CONFIRMED BY T HE TRIBUNAL IN ITA NO.1555/MDS/2011 VIDE ORDER DATED 15.12.2011. IN O UR OPINION, IT IS NOT APPROPRIATE TO THE COMMISSIONER OF INCOME TAX ( APPEALS) TO BASE HIS CONCLUSION ON THE BASIS OF CONFIRMING OF ADDITI ON IN QUANTUM APPEAL WITHOUT INDEPENDENTLY EXAMINE THE LEVY OF PENALTY U/S.271(1)(C) IN ITS APPEAL ORDER AND TO GIVING FINDINGS ON THAT. ACCORDINGLY, WE ARE INCLINED TO REMIT THE ISSUE BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPEALS) TO GIVE SPECIFIC FINDINGS WITH REGARD TO LEVY OF PENALTY AND DECIDE THE ISSUE IN DISPUTE IN ACCORDAN CE WITH LAW. ITA NO.307/MDS/2015 :- 4 -: 6. THE APPEAL OF THE ASSESSEE IN ITA NO.307/MDS/2015 I S PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, 7TH DAY OF AUGUST, 2015, AT CHENNAI. SD/- SD/- ( . . . ! ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ! ) (CHANDRA POOJARI) ' / ACCOUNTANT MEMBER '# / CHENNAI $% / DATED:07.08.2015 KV %&'' ()'*) / COPY TO: ' 1 . / APPELLANT 3. ' +',! / CIT(A) 5. )-.' / / DR 2. / RESPONDENT 4. ' + / CIT 6. .0'1 / GF ITA NO.307/MDS/2015 :- 5 -: