The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Aahar Products Pvt.Ltd..(Now known as Anil Nutrients Ltd), Ahmedabad

ITA 3135/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8405 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 05-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 1(1)(1), AHMEDABAD (APPELLANT) VS M/S. AAHAR PRODUCTS PVT. LTD., (NOW KNOWN AS ANIL NUTRIENTS LTD.) PAN: AAGCS5565F (RESPONDENT) REVENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 07 - 02 - 2 018 DATE OF PRONOUNCEMENT : 16 - 04 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEA L FOR A.Y. 2008 - 09 , ARIS ES FROM ORDER OF THE CIT(A) - 1 , AHM EDABAD DATED 28 - 08 - 2015 , DELETING THE PENALTY OF RS. 18,02,877/ - , IN PROCEEDINGS UNDER SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. IN THIS CASE RETURN OF INCOME DECLARING INCOME OF RS. 1 , 50 , 59 , 284/ - WAS FILED ON 30 TH SEPTEMBER, 2008. SUBSEQUENTLY, THE ORDER U/S. 1 4 3(3) OF THE ACT WAS PASSED ON 1 4 TH DECEMBER , 2010 BY DETERMINING THE TOTAL INCOME AT RS. 5 , 71 , 31 , 833/ - AFTER MAKING THE FOLLOWING ADDITIONS : - 1 UNEXPLAINED UNS ECURED LOANS 39,43, 083/ - 2 UNEXPLAINED CREDITORS 4,10,72,257/ - 3 G.P. ADDITION 4,30,19,408/ - I T A NO . 3135 / A HD/20 15 A SSESSMENT YEAR 200 8 - 09 I.T.A NO. 3135/AHD/2015 A.Y. 2008 - 09 PAGE NO DCIT VS. M/S. AAHAR PRODUC T S PVT. LTD 2 THE LD. CIT(A) HAS PROVIDED PART RELIEF AND RESTRICTED THE GP ADDITION TO THE EXTENT OF RS. 53 , 04 , 140/ - . DURING THE COURSE OF PENALTY PROCEEDING HE A SSESSING OFFICER HAS RESPONDED THAT VIDE LETTER DATED 4 TH MARCH, 2004 STATING THAT ALL NECESSARY PARTICULARS WERE SUBMITTED AND NO DISCREPANCY HAS BEEN POINTED OUT IN T H E SUBMISSION AND PENALTY CANNOT BE LEVIED MERELY ON THE BASIS OF ADDITION WHICH HAVE B E E N PARTLY CONFIRMED BY T H E LD. CIT(A). THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION STATING THAT BOOKS RESULT WAS RE JE CTED AS PER PROVISION O F SECTION 145(III) AND GROSS PROFIT OF THE ASSESSEE WAS DETERMINED AFTER MAKING COMPARISON WITH OTHER COMPANIES ENGAGED IN THE SIMILAR NATURE OF BUSINESS. CONSEQUENTLY , THE ASSESSING OFFICER HAS LEVIED PENALTY OF RS. 18 , 02 , 877/ - U/S. 271(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS OF ITS INCOME. 3. AGGRIEVED ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DELETED THE PENALTY LEVIED BY THE ASSESSING OFFICER STATING THAT LUMP SUM ADDITION WAS MADE WHICH IS PURELY SUBJECTIVE AND WOULD NOT LEAD TO CONCLUSION THAT ASSESSEE HAS CONCEALED INCOME OR FURNISHED INACCURATE PARTICULA RS OF INCOME. DURING T HE COURSE OF PENALTY PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS SUPPORTED THE ORDER OF THE ASSESSING OFFICER . ON THE OTHER HAND, NO - BODY HAS ATTENDED FROM THE SIDE OF THE ASSESSEE. 4. WE HAVE PERUSED THE MATERIAL ON RECORD AND NO TICED THAT T HE ASSESSING OFFICER HAS ESTIMATED THE GROSS PROFIT ON THE GROUND THAT IT IS ON THE LOWER SIDE IN COMPARISON TO THE OTHER COMPANIES. HOWEVER WE OBSERVE THAT ASSESSEE HAS MADE THIS ADDITION WITHOUT ESTABLISHING THAT THE ASSESSEE HAS FURNISHED IN ACCURATE PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME. THEREFORE , A FTER CONSIDERING THE DETAILED FINDINGS OF THE LD . CIT(A) AND A NUMBER OF JUDICIAL PRONOUNCEMENTS ELABORATED BY THE LD. CIT(A) , WE DO N OT FIND ANY REASON TO INTER FERE WITH THE DECISION OF THE LD. CIT(A) . ACCORDINGLY , THE APPEAL OF THE REVENUE IS DISMISSED . 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 16 - 04 - 201 8 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER I.T.A NO. 3135/AHD/2015 A.Y. 2008 - 09 PAGE NO DCIT VS. M/S. AAHAR PRODUC T S PVT. LTD 3 AHMEDABAD : DATED 16 /04 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A ) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,