The DCIT(OSD) Range-1, Ahmedabad V. Aditi Exports Pvt. Ltd., Ahmedabad

ITA 3185/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6022 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-07-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 01-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Keywords: Depreciation
• Section: 271(1)(c); 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HONBL E SHRI A.K.GARODIA, A.M.) I.T.A. NO. 3185/AHD./2010 ASSESSMENT YEAR : 2002-2003 D.C.I.T. (OSD), RANGE-1, ABAD VS- ADITI EXPORTS PVT. LTD., ABAD (PAN : AABCA 6150F) (APPELLANT) (RE SPONDENT) APPELLANT BY : SHRI B.L.YADAV, D.R. RESPONDENT BY : SMT. URVASHI SHODHAN, A.R . O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER DATED 21-09-2010 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-VI, AHM EDABAD CANCELLING THE PENALTY OF RS.32,58,686/- LEVIED UNDER SECTION 271( 1)(C) ON THE ADDITION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2002-03. 2. WE HAVE HEARD BOTH THE SIDES AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT THE AO LEVIED THE PENALTY UNDER SECTION 271(1)(C) AMOUNTING TO RS.32,58,686/- IN RESPECT OF NON-ALLOWANCE OF DEPRECIATION. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) CA NCELLED THE PENALTY ON THE GROUND THAT THE ITAT VIDE ORDER DATED 12.03.2010, IN ASSES SEES OWN CASE IN ITA NO. 391/A/2007 & 1892/A/2008 FOR THE ASSESSMENT YEARS 2 004-05 AND 2002-03 HELD THAT CONDITIONS FOR CLAIM UNDER SECTION 32 ARE FULFILLED AND ASSESSEE IS ENTITLED TO DEPRECIATION ON THE ASSETS WORTH RS.4,21,86,000/-. IT IS A WELL-SETTLED LAW THAT WHERE THE ADDITION MADE IN THE ASSESSMENT YEAR, ON THE BA SIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, IS DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT. IN SUCH A CASE, NO PENALTY CAN SURVIVE . ADMITTEDLY, IN THE PRESENT CASE, ITA NO.3185/AHD/2010 2 ADDITION, ON WHICH PENALTY WAS LEVIED, IS ITSELF DE LETED BY HIGHEST FACT-FINDING AUTHORITY, THEREFORE, PENALTY ON SUCH ADDITION CANN OT SURVIVE. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE LD. CIT(A). HENCE, WE INCLINE TO UPHOLD THE ORDER OF THE LD. CIT(A). 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 29.07.2011 SD/- SD/- (A.K.GARODIA) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29/07/2011 COPY OF THE ORDER IS FORWARDED TO:- (1) THE ASSESSEE (2) THE DEPARTMENT. (3) CIT (A.) CONCERNED. (4) CIT CONCERNED. (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AH MEDABAD. TALUKDAR/ SR. P.S.