Ishika Beauty International Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-4(3), Ahmedabad

ITA 3673/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9633 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 30-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DIVYAKANT PARIKH
• Keywords: Reopening of assessment
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER ./ ITA NO.3673/AHD/2015 / ASSESSMENT YEAR: 2008-09 M/S. ISHIKA BEAUTY INTERNATIONAL PVT LTD, 101, KOHINOOR CHAMBER, NR. SINDH MERC BANK, KALUPUR KOTNI MARG, AHMEDABAD .. APPELL ANT PAN : AABCI 5370 H VS ITO, WARD-4(3), AHMEDABAD .. RESPONDENT ASSESSEE(S) BY : SHRI DIVYAKANT PARIKH, AR REVENUE BY : SHRI KAMLESH MAKWANA, SR. DR. / DATE OF HEARING 17/02/2016 /DATE OF PRONOUNCEMENT 18/02/2016 / O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, AHMEDABAD, DATED 27.05.2015 FOR ASSESSMENT YEAR 2008-09. 2. THE ONLY EFFECTIVE GROUND RAISED IN THIS APPEAL IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE LEVY OF PENAL TY OF RS.4,50,000/- U/S 271(1)(C) OF THE INCOME-TAX ACT. 3. BRIEFLY STATED THE FACTS ARE AS FOLLOWS:- ASSESSMENT U/S 143(3) R.W.S. 147 OF THE ACT WAS CO MPLETED VIDE ORDER DATED 16.12.2011, MAKING ADDITION U/S 68 OF T HE INCOME-TAX ACT AMOUNTING TO RS.10 LAKHS ON ACCOUNT OF SHARE APPLIC ATION MONEY AND SHARE PREMIUM FROM TWO CONCERNS OF RS. 5 LAKH EACH. ON FURTHER APPEAL, THE CIT(A) CONFIRMED THE ADDITION AND ALSO ENHANCED THE (SMC) ITA NO. 3673/AHD/2015 ISHIKA BEAUTY INTERNATIONAL PVT LTD VS. ITO AY 2008-09 2 INCOME ON ACCOUNT OF SHARE APPLICATION MONEY AND TH E SHARE PREMIUM AMOUNTING TO RS.15 LAKHS. 3.1 SUBSEQUENT TO THE CIT(A)S ORDER, PENALTY U/S 2 71(1)(C) OF THE ACT WAS COMPLETED, IMPOSING A PENALTY OF RS.4,50,00 0/-. ON FURTHER APPEAL, THE PENALTY IMPOSED WAS CONFIRMED BY THE CI T(A). THE ASSESSEE, BEING AGGRIEVED, IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE ME, IT WAS POINTED OUT BY THE LD. COUNSEL THAT, IN THE QUANTUM APPEAL, THE TRIBUNAL H AS REMITTED THE MATTER BACK TO THE FILE OF LD. CIT(A) FOR ADJUDICAT ION ON JURISDICTIONAL ISSUE, I.E., VALIDITY OF REOPENING OF ASSESSMENT U/ S 147, VIDE ORDER DATED 23.12.2015 IN ITA NO.2161/AHD/2015 COPY OF THE ORDER IS PLACED ON RECORD. WHEN THE TRIBUNAL HAS SET ASIDE THE ORDER OF THE CIT(A) ON JURISDICTIONAL ISSUE, THE PENALTY MADE IN RESPECT OF SUCH ORDER CANNOT SURVIVE. ACCORDINGLY, I SET ASIDE THE PENALTY ORDER PASSED U/S. 271(1)(C) OF THE ACT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON 18TH FEBRUARY, 201 6 AT AHMEDABAD. S D/- ( GEORGE GEORGE K. ) JUDICIAL MEMBER AHMEDABAD; DATED 18/02/2016 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! ' ' # / CONCERNED CIT 4. ' ' # ( ) / THE CIT(A) 5. &'( ! , ' ! , / D R, ITAT, AHMEDABAD 6. (- . / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD