M/s Seshasai Knittings P Ltd, Vijayawada V. The ACIT, Circle-1(1), Vijayawada

ITA 317/VIZ/2007

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50283 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-04-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 21-06-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA

Judgement Text

ITA NO.317/V/2007 SESHASAI KNITTINGS (P) LTD., VJA 1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 317 /VIZAG/ 20 07 ASSESSMENT YEAR : 2000 - 01 SESHASAI KNITTINGS (P) LTD. VIJAYAWADA VS. ACIT, CIRCLE - 1(1) VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO.AADCS 1717J APPELLANT BY: SHRI C. SUBRAHMANYAM, CA RESPONDENT BY: SHRI D. KOMALI KRISHNA, SR.DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) CONFIRMING THE PENALTY LEVIED U/S 271(1)(C) OF THE I.T. ACT. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE WITH REGARD TO THE QUANTUMS INVOLVED ON WHICH PENALTY WAS LEVIED WITH THE SUBMISSION THAT THE TRIBUNAL HAS DELETED THE IMPUGNED ADDITIONS. THERE FORE, THE BASIS FOR LEVYING THE PENALTY HAS BEEN ERODED. UNDER THESE CIRCUMSTA NCES, THE PENALTY U/S 271(1)(C) IS NOT SUSTAINABLE UNDER THE LAW. 2. THE LD. D.R. DID NOT DISPUTE THE FACTUAL ASPECT. HAVING HEARD THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE WITH RESPECT TO THE QUANTUMS ON WHICH THE IMPUGNED PENALTY WAS LEVIED, WE FIND THAT THE TRIBUNAL HAS D ELETED THE ADDITIONS CONFIRMED BY THE CIT(A). SINCE THE BASIS OF PENALT Y LEVIED U/S 271(1)(C) HAS BEEN ERODED, THE PENALTY U/S 271(1)(C) DOES NOT SUR VIVE. WE THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE PENALT Y. ITA NO.317/V/2007 SESHASAI KNITTINGS (P) LTD., VJA 2 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 16.6.2011 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 16 TH JUNE, 2011 COPY TO 1 SESHASAI KNITTINGS (P) LTD., 16 - 3 - 8, KOWTHAVARI STREET, POORNANANDAMPET, VIJAYAWADA 2 ACIT, CIRCLE - 1(1), VIJAYAWADA 3 THE CI T, VIJAYAWADA 4 THE CIT (A) , VIJ AYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM