The ITO, Ward-6(4), Ahmedabad V. M/s. Ratnadeep Industries, Ahmedabad

ITA 3284/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6554 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-05-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 10-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID SRDR
• Keywords: Gross profit estimation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI D.K.TYAGI, HONBLE JUDICIAL MEMBER, AND SHRI D. C. AGRAWAL, HONBLE ACCOUNTANT MEMBER ITA NO.3284/AHD/2009 ASSESSMENT YEAR:2002-03 DATE OF HEARING26051.11 DRAFTED:26.5.11 INCOME TAX OFFICER, WARD- 6(4), C.U.SHAH BULDING, ASHRAM ROAD, AHMEDABAD V/S . RATNADEEP INDUSTRIES, 715-PHASE-IV, GIDC ESTATE, VATVA, AHMEDABAD PAN NO.AACFR0656E (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI J.P. JANGID, SR-DR RESPONDENT BY:- SHRI GAURAV NAHTA, AR O R D E R PER D.K.TYAGI, JUDICIAL MEMBER:- THIS IS REVENUES APPEAL AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME(APPEALS)-XI, AHMEDABAD IN APPEAL NO. CIT(A)- XI/669/07-08 DELETING THE PENALTY MADE BY ASSESSING OFFICER U/S 271(1)(C)(C) OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2002-03. 2. THE ASSESSING OFFICER WHILE LEVYING THE PENALTY OF RS.9,31.111/- U/S.271(1) OF THE ACT HAS OBSERVED AS UNDER:- IN VIEW OF THE ABOVE FACTS, I AM SATISFIED THAT TH E ASSESSEE HAD FURNISHED INACCURATE PARTICULARS OF HIS INCOME AND THEREBY CO NCEALED INCOME OF RS.26,08,155/- AND, THUS, COMMITTED DEFAULT LIABLE FOR PENALTY U/S.271(1). THE ASSESSEE HAD DELIBERATELY AND WILLFULLY EVADED THE RESULTANT TAX OF RS.9,31,111/-. IN THIS CASE, MINIMUM AND MAXIMUM PE NALTY LEVIABLE U/S.271(1) OF THE ACT ARE AS UNDER;- PENALTY LEVIABLE AT 100% OF TAX ON INCOME CONCEALED OF RS.26,08,155/- RS, 9,31,111/- 300% OF TAX ON INCOME CONCEALED RS.27,93,333/- HOWEVER, CONSIDERING THE FACTS OF THE CASE, A PENAL TY OF RS.9,31,111/- IS LEVIED IN THIS CASE. ITA NO.3284/AHD/2009 A.Y. 2002-03 ITO WD-6(4), ABD V. RATNADEEP INDS. PAGE 2 3. BEFORE LD. CIT(APPEALS) ASSESSEE MADE FOLLOWING SUBMISSIONS:- 1.0 THE PRESENT APPEAL WAS PREFERRED AGAINST THE P ENALTY ORDER U/S.271(1) DATED 29/02/2008 PASSED BY THE INCOME TAX OFFICER, WARD 6(4), AHMEDABAD (HERE IN AFTER REFERRED TO AS AO)WHEREIN PENALTY OF RS.9,31,111/- WAS LEVIED WITHOUT PROPERLY APPRECIATING THE FACTS AND PREVALE NT LEGAL DECISIONS. 2.0 THE AO LEVIED A PENALTY OF RS.9,31,111/- FOR TH E ADDITION MADE BY HIM OF RS.2608155/- ON ACCOUNT OF ALLEGED LOW GROSS PROFIT . IT IS RESPECTFULLY SUBMITTED THAT THE APPEAL PREFERRED BY THE APPELLAN T BEFORE HONBLE ITAT AHMEDABAD HAS SINCE BEEN DECIDED VIDE ORDER NO. ITA 721/AHD/2007 DATED 05-06-2009 AND THE ENTIRE ADDITION OF RS.2608155/- WAS DIRECT ED TO BE DELETED. (KINDLY REFER PARA 8-9). IT IS THEREFORE S UBMITTED THAT WHEN NO ADDITION IS SUSTAINED, PENALTY LEVIED BY THE AO DESERVES TO BE DELETED. A COPY OF THE APPELLATE ORDER PASSED BY HONBLE ITAT IS ENCLOSED HEREWITH. TAKING THIS SUBMISSIONS OF THE ASSESSEE INTO CONSID ERATION, LD. CIT(A) DELETED THE PENALTY. 4. SINCE THE ADDITION OF RS.26,08,155/- MADE BY ASS ESSING OFFICER WHICH WAS THE BASIS FOR LEVYING PENALTY U/S.271(1) HAS BEEN DELETED BY HONBLE ITAT IN QUANTUM APPEAL, THE LD. CIT(APPEALS) WAS JUSTIFIED IN DELETING THE PENALTY ALSO AND WE FIND NO INFIRMITY IN SUCH ORDER OF LD. CIT(A) AN D THE SAME IS HEREBY UPHELD. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 26/05 /2011 SD/- SD/- (D.C.AGRAWAL) (D.K. TYAGI) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, DATED : 26/05/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-XI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD