The ACIT, Vapi Circle, Vapi V. M/s. Alfa Lamination., Daman

ITA 3093/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8629 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-03-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 16-07-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVIND SINGHAL
• Keywords: Wrong claim
• Section: 80IB; 80IA; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. N. PAHUJA, AM) ITA NO.3093/AHD/2007 A. Y.: 2001-02 THE A. C. I. T., VAPI CIRCLE, VAPI, 3 RD FLOOR, SHIVAM COMPLEX, GUNJAN CHAR RASTA, NH-8, VAPI VS M/S. ALFA LAMINATION, B-8 & 9 GIDC INDUSTRIAL AREA, RINGANWADA, DAMAN PA NO. AAEFA 3357Q (APPELLANT) (RESPONDENT) APPELLANT BY SHRI GOVIND SINGHAL, DR RESPONDENT BY JAIMIN GANDHI, AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A), VALSAD DATED 29-03 -2007 FOR ASSESSMENT YEAR 2001-02 CANCELING THE PENALTY U/S 271 (1) ( C ) OF THE INCOME TAX ACT. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES, PERUSED THE FINDINGS OF THE AUTHORITIES BELOW AND C ONSIDERED THE MATERIAL AVAILABLE ON RECORD. 3. BRIEFLY, THE FACTS OF THE CASE ARE THAT PENALTY HAS BEEN IMPOSED IN RESPECT OF ADDITION TO THE TOTAL INCOME RESULTING F ROM REDUCING THE DEDUCTION U/S 80IB OF THE IT ACT OF ACCRUED INTERES T ON WHICH THE ASSESSEE CLAIMED DEDUCTION U/S 80 IB OF THE IT ACT. IT WAS SUBMITTED THAT ALL THE PARTICULARS OF INCOME WERE DISCLOSED BEFORE THE AUTHORITIES BELOW AND THAT THERE WERE DIVERGENT VIEW FOR CLAIM OF DED UCTION U/S 80 IB OF THE IT ACT. SINCE THE ASSESSEE MADE BONA FIDE CLAIM OF DEDUCTION U/S 80 IB OF THE IT ACT, IT WAS NOT A FIT CASE FOR IMPOSITION OF PENALTY. THE LEARNED CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE. THE LEARNED CIT(A) NOTED THAT THE AO HAS IMPOSED THE PENALTY ON ACCOUNT OF I NTERPRETATION OF THE ITA NO.3093/AHD/2007 M/S. ALFA LAMINATION 2 PROVISIONS OF SECTION 80 IB OF THE IT ACT AS REGARD S ELIGIBILITY OF INTEREST RECEIVED ON LC MARGIN DEPOSIT FOR WHICH DEDUCTION W AS CLAIMED. THE LEARNED CIT(A), THEREFORE, NOTED THAT IT IS NOT A F IT CASE FOR IMPOSITION OF THE PENALTY. PENALTY WAS ACCORDINGLY CANCELLED. 4. THE LEARNED DR RELIED UPON THE ORDER OF THE AO A ND SUBMITTED THAT THE ASSESSEE MADE A WRONG CLAIM OF EXCESSIVE DEDUCT ION U/S 80 IB OF THE IT ACT. THEREFORE, PENALTY WAS RIGHTLY IMPOSED IN T HE MATTER. ON THE OTHER HAND, LEARNED COUNSEL FOR THE ASSESSEE REITERATED T HE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. 5. ON CONSIDERATION OF THE RIVAL SUBMISSIONS AND TH E MATERIAL AVAILABLE ON RECORD, WE ARE OF THE VIEW THAT THE LE ARNED CIT(A) HAS RIGHTLY CANCELLED THE PENALTY IN THE MATTER. ITAT AHMEDABAD BENCH IN THE CASE OF ITO VS KIRI DYES AND CHEMICALS PVT. LTD. IN ITA NO.274/AHD/2004 CONSIDERING THE IDENTICAL ISSUE AND CANCELLED THE P ENALTY U/S 271 (1) ( C ) OF THE IT ACT VIDE ORDER OF EVEN DATE. THE SU BMISSIONS OF THE PARTIES AND THE FINDINGS OF THE TRIBUNAL ARE REPRODUCED AS UNDER: 4. THE LEARNED DR RELIED UPON THE ORDER OF THE AO. ON THE OTHER HAND, LEARNED COUNSEL FOR THE ASSESSEE REITER ATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND R ELIED UPON THE ORDER OF ITAT AHMEDABAD BENCH IN THE CASE OF M/S. PYRAMID PLASTICS VS ACIT IN ITA NO.382/AHD/2007 DAT ED 30- 04-2007 IN WHICH ON ACCOUNT OF DEDUCTION U/S 80 IB OF THE IT ACT, PENALTY WAS CANCELLED. COPY OF THE ORDER IS PL ACED ON RECORD. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. WE DO NOT FIND AN Y JUSTIFICATION TO INTERFERE WITH THE ORDER OF THE LE ARNED CIT(A) IN CANCELING THE PENALTY. THE LEARNED CIT(A) HAS RIGHT LY APPRECIATED THE DIFFERENCE IN THE LANGUAGE PROVIDED U/S 80 I AND 80 HH OF THE IT ACT AS COMPARED TO DEDUCTION PR OVIDED U/S 80 IA OF THE IT ACT. THE FINDINGS OF THE LEARNE D CIT(A) ARE SUPPORTED BY SEVERAL DECISIONS OF DIFFERENT BENCHES OF THE TRIBUNAL. IT WOULD, THEREFORE, BE A ISSUE ON WHICH TWO VIEWS ARE POSSIBLE. SINCE THE MATTER IS HIGHLY DEBATABLE, THEREFORE, IT ITA NO.3093/AHD/2007 M/S. ALFA LAMINATION 3 IS DIFFICULT TO BELIEVE THAT THE ASSESSEE HAS CONCE ALED THE PARTICULARS OF INCOME OR FILED INACCURATE PARTICULA RS OF INCOME. THE ASSESSEE DISCLOSED ALL THE PARTICULARS FOR CLAI MING DEDUCTION U/S 80 IA OF THE IT ACT BEFORE THE AO AND THE AO WAS OF THE VIEW THAT THE ASSESSEE IS NOT ENTITLED F OR DEDUCTION OF CERTAIN ITEMS U/S 80 IA OF THE IT ACT. THE AO HA S, THEREFORE, NOT GIVEN ANY SPECIFIC FINDINGS IN THE PENALTY ORDE R THAT THE ASSESSEE HAS CONCEALED PARTICULARS OF INCOME OR FIL ED INACCURATE PARTICULARS OF INCOME. SINCE ALL THE PAR TICULARS WERE BEFORE THE AUTHORITIES BELOW AND THE ISSUE WAS DEBA TABLE BEING DIFFERENCE IN THE LANGUAGE U/S 80 IA AND 80 I OF THE IT ACT ON WHICH THE AO HAS PLACED RELIANCE FOR THE PUR POSE OF DISALLOWING CLAIM OF THE ASSESSEE U/S 80IA OF THE I T ACT, WE ARE OF THE VIEW THAT IT WAS NOT A FIT CASE FOR IMPO SITION OF PENALTY AGAINST THE ASSESSEE. THE SAME VIEW IS TAKE N BY THE ITAT AHMEDABAD BENCH IN THE CASE OF M/S. PYRAMID PL ASTICS (SUPRA) IN WHICH THE APPEAL OF THE ASSESSEE WAS ALL OWED CANCELING THE PENALTY U/S 271 (1) ( C ) OF THE IT A CT. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE FINDINGS OF THE LEARNED CIT(A) WE DO NOT FIND IT TO BE A FIT CASE FOR INTERFERENCE. WE CONFIRM THE FINDINGS OF THE LE ARNED CIT(A) AND DISMISS THE DEPARTMENTAL APPEAL. 6. CONSIDERING THE ABOVE FACTS, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. SAME IS ACCORDINGLY DISMISSED. 7. AS A RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 12-03-2010. SD/- SD/- (A. N. PAHUJA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 12-03-2010 LAKSHMIKANT/- ITA NO.3093/AHD/2007 M/S. ALFA LAMINATION 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD