The ACIT, Circle-2, JAMNAGAR V. Tacon Infrastructure Pvt. Ltd., PORBANDAR

ITA 352/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0053 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 31-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: PRASHANT MAHARSHI
• Keywords: Depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA, JM AND SHRI A. K.GARODIA, AM ITA NO. 352/RJT/2012. / ASSESSMENT YEARS 2006-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, JAMNAGAR. / APPELLANT) VS. TACON INFRASTRUCTURE PVT.LTD. TACON COMPLEX, 3-WADI PLOT, M.G.ROAD, NR.KAMLA BAG, PORBANDAR PAN: AABCT4416D / RESPONDENT / REVENUE BY SHRI AVINASH KUMAR ' / ASSESSEE BY SHRI PRASHANT MAHARSHI & / DATE OF HEARING 3.8.2012 & / DATE OF PRONOUNCEMENT 30.8.2012 / / / / ORDER PER T. K. SHARMA, JM THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DAT ED 26.3.2012 PASSED THE LD.CIT(A) IN DELETING THE PENALTY OF RS.3, 58,590/- FOR THE ASSESSMENT YEAR 2006-07. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CON STRUCTION COMPANY ENGAGED IN INFRASTRUCTURE PROJECTS OF GOVERNM ENT /SEMI GOVERNMENT BODIES. IT FILED RETURN ON 26.12.2006 D ECLARING INCOME OF RS.64,38,820/-. THE SCRUTINY ASSESSMENT WAS COMPLETED U/S 1 43(3) OF THE ACT ON 26.12.2008 DETERMINING THE TOTAL INCOME AT RS. 2,16,10,170/-. THE AO ALSO INITIATED PENALTY PROCEEDINGS U/S 271(1)( C ) FOR FURNISHING ITA NO. 352/RJT/2012. 2 INACCURATE PARTICULARS OF INCOME FOR DEDUCTION U/S 80I A RS.1,48,59,822/-, RS.1,03,764/-, WRONG DEPRECIATION CLAIM RS.1,60,319/- AND RS.44,500/- DISALLOWANCE U/S 40(A)(IA) OF THE ACT. AGAINST THE ADDITION BY THE AO, THE ASSESSEE PREFERRED THE APPEAL BEFORE THE CIT(A) AND DU RING PENDENCY OF THIS APPEAL, THE PENALTY PROCEEDINGS INITIATED BY THE AO WAS SUSPENDED. THE ASSESSEE FILED DETAILED REPLY TO THE PENALTY PROCEE DINGS TAKEN BY THE AO. THE AO DID NOT SATISFY WITH THE EXPLANATION GI VEN BY THE ASSESSEE, AND ACCORDINGLY, HE IMPOSED THE PENALTY OF RS.10,75,749 /- BEING 300% OF THE TAX SOUGHT TO BE EVADED. 3. BEING AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A). 4. THE CIT(A) AFTER RELYING ON THE ORDER OF THE RAJ KOT BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ACIT V/S M/S TACON INF RASTRUCTRUE PVT LTD IN I.T.A. NO.1210 TO 1212/RJT/2010 ( A.Y.2 002-03 TO 2004-05) DATED 16.12.2010 OBSERVED AND HELD THAT THE ADDITIO N MADE BY THE AO ARE NOT ACCORDING TO LAW AND SINCE THE ADDITION HAS BEE N DELETED, HE HELD THAT THE ASSESSEE HAS NOT CONCEALED ITS INCOME AND FURNIS HED IN ACCURATE PARTICULARS OF INCOME. THE CIT(A) VIDE PARAGRAPH 6 OF HIS ORDER HAS ALSO OBSERVED THAT THE TRIBUNAL HELD THAT NO PENALTY CAN BE LEVIED ON SUCH ADDITION AS IT DOES NOT RESULT IN ANY CONCEALMENT OR FUR NISHING OF INACCURATE PARTICULARS OF INCOME. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENU E IS IN APPEAL FIR DELETING THE PENALTY LEVIED BY THE AO. ITA NO. 352/RJT/2012. 3 6. THE LD DR AFTER NARRATING THE FACTS OF THE CASE STR ONGLY SUPPORTED THE ORDER OF THE AO. 7. ON THE CONTRARY, THE LD. AR FOR THE ASSESSEE SUPPORTED THE ORDER OF THE CIT(A) AND ALSO RELIED ON THE DECISION OF THE RA JKOT BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE (SUPRA). 8. WE HAVE HEARD BOTH THE PARTIES, CONSIDERED THE MATE RIAL AVAILABLE ON RECORD AND ALSO GONE THROUGH THE ORDERS OF AUTHORIT IES BELOW. WE FIND THAT THE LD. CIT(A) HAS PASSED WELL REASONED ORDER AFTE R CONSIDERING THE FACTS ON RECORD, THE PROVISIONS OF ACT, AND THE DECISION OF THE RAJKOT BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ACIT V/ S M/S TACON INFRASTRUCTRUE PVT LTD IN I.T.A. NO.1210 TO 1212/RJT/ 2010 ( A.Y.2002-03 TO 2004-05) DATED 16.12.2010. THEREFORE, WE HAVE NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) IN DELETING THE PE NALTY LEVIED U/S 271(1)( C ) OF THE ACT. ACCORDINGLY, WE CONFIRM HIS ORDER. 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED HEREINABOVE. SD SD ( A. K.GARODIA) ( T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER +/ ORDER DATE 30.08.2012. /RAJKOT SRL - - - - .- .- .- .- / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT-, 2. / RESPONDENT- ITA NO. 352/RJT/2012. 4 3. 4 / CONCERNED CIT. 4. 4- / CIT (A). 5. - , , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , TRUE COPY SENIOR PRIVATE SECRETARY , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.