Shri Ram Diya Contractor, Kaithal V. ITO, Kurukshetra

ITA 308/CHANDI/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5442 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 22-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: A BENCH: CH ANDIGARH BEFORE SHRI D K SRIVASTAVA, AM AND MS. SUSHMA CHOWL A, JM ITA NO. 308/CHANDI/2011 ASSESSMENT YEAR: 2 006-07 RAM DIYA CONTRACTOR V. I.T.O. WARD -1, KURUKSHET RA VILLAGE MAJRA P.P. REHRA KAITHAL PAN: AEYPD 2470 D (APPELLANT-ASSESSEE) (RESPONDENT) APPELLANT BY: SHRI RAVINDER BINDLISH RESPONDENT B Y: SHRI N.K. SAINI ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) ON16.12.2010 CONFIRMING THE PENAL TY AMOUNTING TO RS. 167610/- LEVIED BY THE AO U/S 271(1)(C) OF INCOME-TAX ACT. 2. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY CON SIDERED THEIR SUBMISSIONS. THE ASSESSEE IS A CIVIL CONTRACTOR. THE BOOKS OF ACCOU NT MAINTAINED BY THE ASSESSEE WERE DEFECTIVE AND THEREFORE, THEY WERE REJECTED. RESUL TANTLY, NO PROFIT RATE WAS APPLIED AND ADDITIONS WERE MADE. IT IS ON THE BASIS OF THESE A DDITIONS THAT THE IMPUGNED PENALTY WAS LEVIED BY THE AO. ON APPEAL, THE LD. CIT(A) HAS CO NFIRMED THE IMPUGNED PENALTY LEVIED BY THE AO. THE LD. CIT(A) HAS REFERRED TO SEVERAL JUD GMENTS IN SUPPORT OF ITS DECISIONS. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE THAT THE LEVY OF IMPUGNED PENALTY WAS INVA LID AS IT WAS BASED ON ESTIMATE OF INCOME. ACCORDING TO HIM THE BOOKS OF ACCOUNT WERE MERELY FOUND DEFECTIVE AND THEY WERE REJECTED AND THE ADDITIONS WERE MADE. HE SUBMITTED THAT THE MERE FACT THAT THE IMPUGNED ADDITIONS WERE MADE WOULD NOT BE SUFFICIENT FOR LEV Y OF PENALTY. 4. ON CAREFUL CONSIDERATION OF THE MATERIAL PLACED ON RECORD, IT IS CLEAR THAT THE IMPUGNED PENALTY HAS BEEN LEVIED AS A RESULT OF ADD ITIONS BASED ON REJECTION OF BOOKS OF ACCOUNT. THE CASE OF THE DEPARTMENT THAT THE ASSES SEE HAS CONCEALED OR SUPPRESSED ANY MATERIAL OR INFORMATION, THE BOOKS OF ACCOUNT OF TH E ASSESSEE ARE DULY AUDITED. ON THE FACTS OF THE CASE THE IMPUGNED PENAL IS LIABLE TO BE CANC ELLED AND IS ACCORDINGLY CANCELLED. 5. APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON APRIL, 2011 (SUSHMA CHOWLA) (D K SRIVASTAVA) JUDICIAL MEMBER ACCOUNTANT MEM BER CHANDIGARH: THE APRIL, 2011 SURESH COPY TO: 1. THE APPELLANT, RAM DIYA CONTRACTOR, VILLAGE MAJR A 2. THE RESPONDENT, I.T.O. WARD -1, KURUKSHETRA RAM DIYA CONTRATOR, MAJRA V. ITO 308/CHANDI/2011 2 3. THE CIT(A), KARNAL 4. THE LD. CIT, KARNAL 5. THE D.R, INCOME-TAX DEPARTMENT, CHANDIGARH TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH