Akruti Dyeing & Printing Mills Pvt.Ltd., Surat V. The ACIT.,Circle-1, Surat

ITA 3169/AHD/2008

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0448 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-01-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 08-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PANDEY
• Assessee Lawyers: M G SHAH
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI A.K.GARODIA, ACCOUNT ANT MEMBER AKRUTI DYEING & PRINTING MILLS P. LTD, SURAT PAN NO. (APPELLANT) VS ACIT, CIRCLE-1 SURAT (RESPONDENT) REVENUE BY: SRI A.K.PANDEY, SR. D.R. ASSESSEE BY: SRI M.G.SHAH, A.R. DATE OF HEARING : 15-3-2013 DATE OF PRONOUNCEMENT : 22-3-2013 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-I DATED 23-10-2006. 2. THE ASSESSEE IN THIS APPEAL IS AGGRIEVED BY THE ACTION OF THE LD. CIT(A) IN SUSTAINING THE PENALTY OF RS. 1,30,482/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT. ITA NO. 3169/AHD/2008 A.Y.:-2003-04 I.T.A NO.3169/AHD/2008 A.Y. 2003-04 PAGE NO AKRUTI DYEING & PRINTING MILLS P. LTD. VS. ACIT 2 3. BRIEF FACTS OF THE CASE ARE THAT IN THIS CASE DU RING THE ASSESSMENT PROCEEDINGS ASSESSING OFFICER MADE TWO ADDITIONS, N AMELY, ADDITION OF RS. 5,09,161/- ON ACCOUNT OF CLOSING STOCK OF WORK-IN-P ROGRESS AND ADDITION OF RS. 7,21,950/- IN RESPECT OF BOGUS PURCHASES. THE ASSESSING OFFICER ALSO INITIATED PENALTY PROCEEDINGS AND LEVIED A PENALTY OF RS. 4,52,432/-. WHEN ASSESSEE WENT IN APPEAL, THE LD. CIT(A) DELETED THE PENALTY AMOUNTING TO RS. 3,21,950/- LEVIED BY ASSESSING OFFICER IN RESPE CT OF ADDITION OF RS. 7,21,950/- AND SUSTAINED THE REST OF THE PENALTY AM OUNTING TO RS. 1,30,482/- IN RESPECT OF ADDITION OF RS. 5,09,161/- ON ACCOUNT OF CLOSING STOCK OF WORK - IN-PROGRESS. 4. NOW THE ASSESSEE IN APPEAL BEFORE US. AT THE TI ME OF HEARING LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED TH AT IN EARLIER YEARS ON IDENTICAL FACTS PENALTY IMPOSED BY ASSESSING OFFICE R WAS DELETED BY LD. CIT(A) AND THE ORDER OF LD CIT(A) WAS CONFIRMED BY HONBLE ITAT VIDE ITS ORDER DATED 08-01-2010 VIDE ITA NO. 2954/AHD/2009. HE THEREFORE PRAYED THAT FOLLOWING THE DECISION OF HONBLE ITAT OF EARL IER YEARS IN ASSESSEES OWN CASE PENALTY OF RS. 1,30,482/- LEVIED BY ASSES SING OFFICER AND SUSTAINED BY THE LD. CIT(A) MAY KINDLY BE DELETED. LD. D.R. HOWEVER RELIED ON ORDER OF LOWER AUTHORITIES. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT DURING THE YEAR 2004-05 ON IDENTICAL FACTS I.E. IN RESPECT OF ADDITION ON ACCOUNT OF CLOSING STOCK OF WORK-IN-PROGRESS THE PE NALTY U/S 271(1)(C) WAS IMPOSED BY THE ASSESSING OFFICER WHICH WAS DELETED BY THE LD. CIT(A) AND THE ORDER OF LD. CIT(A) WAS UPHELD BY HONBLE ITAT VIDE ITS ORDER DATED 08-01-2010 IN ITA NO. 2954/AHD/2009. FOLLOWING THE SAME THE PENALTY OF I.T.A NO.3169/AHD/2008 A.Y. 2003-04 PAGE NO AKRUTI DYEING & PRINTING MILLS P. LTD. VS. ACIT 3 RS.1,30,482/- IMPOSED BY A.O. AND SUSTAINED BY LD. CIT(A) IS HEREBY DELETED. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (A.K. GARODIA) ( D.K.TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 22 /03/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '# STRENGTHENED PREPARATION & DELIVERY OF ORDERS IN TH E ITAT 1) DATE OF TAKING DICTATION 15-03-2013 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE N.A. 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 18-03-2013 4) DATE OF CORRECTION 18-03-2013 5) DATE OF FURTHER CORRECTION XXXX 6) DATE OF INITIAL SIGN BY MEMBERS 19-03-2013 7) ORDER UPLOADED ON 01-04-2013 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE YES 9) ORDER SENT TO BENCH CLERK 22-03-2013