Deputy Commissioner of Income tax, V. Rasiklal Manikchand Dhariwal (HUF), Pune

ITA 38/PUN/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7156 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 05-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE . , , BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM WTA NO.38/PUN/2017 / ASSESSMENT YEAR : 2008-09 ACIT, CIRCLE-2, AURANGABAD . /APPELLANT VS. UB AJANTA BREWERIES PVT. LTD., PLOT NO.H-8 TO H-11, MIDC, WALUJ, AURANGABAD 431 136 PAN : AABCA6594R . / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SMT. ACHAL SHARMA, ADDL.CIT / DATE OF HEARING : 15.11.2017 / DATE OF PRONOUNCEMENT: 15.11.2017 / ORDER PER D. KARUNAKARA RAO, AM : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF CIT(A)- 2, AURANGABAD DATED 05-05-2017 FOR THE ASSESSMENT Y EAR 2008-09. 2. DESPITE THE SERVICE OF NOTICE, THERE WAS NONE TO REPRESENT THE CASE OF THE ASSESSEE ON 3 OCCASIONS, I.E. ON 30-08- 17, 07-09-17 AND 15-11-2017. CONSIDERING THE COVERED NATURE OF THE ISSUE, WE ARE OF THE OPINION THAT THIS APPEAL CAN BE ADJUDICATED WIT H THE ASSISTANCE OF LD. DR FOR THE REVENUE AND THE MATERIAL AVAILABL E ON RECORD. 3. BRIEF FACTS OF THE CASE INCLUDE THAT THE ASSESSEE IS A C OMPANY AND FILED THE RETURN OF WEALTH IN RESPONSE TO NOTICE U/S.17 DEC LARING NET WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 2 WEALTH OF RS.6.79 LAKHS. AO MADE THE ADDITION AMOUNTING TO RS.8.25 CRORES IN CONNECTION WITH THE LAND ADMEASURING 66,604 SQ.M TRS. IN THIS REGARD, PENALTY U/S.18(1)(C) OF THE WEALTH TAX ACT WAS INITIAT ED FOR FURNISHING OF INACCURATE PARTICULARS OF WEALTH OR CONCEALMENT OF WEALTH. ACCORDINGLY, THE PENALTY AMOUNTING TO RS.8,25,000/- WAS LEV IED. CIT(A) DELETED THE SAID PENALTY CONSIDERING THE FOLLOWING. PARA 7 OF HIS ORDER IS EXTRACTED AS UNDER : 7. IN VIEW OF THE FACT THAT THE QUANTUM ADDITION WHICH FORMS THE BASIS FOR LEVY OF PENALTY HAS BEEN DELETED BY THE HONBLE ITAT . . . . . . CONSEQUENTLY, THE OCCASION FOR LEVY OF PENALTY FOR CONCEALMENT OF WEALTH ALSO DOES NOT SURVIVE. HENCE, I DIRECT THE ASSESSI NG OFFICER TO CANCEL THE PENALTY LEVIED BY HIM. 4. AGGRIEVED WITH THE SAID DECISION OF THE CIT(A)-2, AURANG ABAD, THE REVENUE RAISED THE FOLLOWING CORE ISSUES : 1. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CA SE AND LAW, LD.CWT(A) HAS ERRED IN DELETING THE PENALTY U/S.18( 1)(C) OF WEALTH TAX ACT. 2. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CAS E AND LAW, LD.CWT(A) HAS FAILED TO APPRECIATE MERITS OF THE CA SE & HENCE WHETHER LD.CWT(A) WAS RIGHT & JUSTIFIED IN DELETING THE PEN ALTY ON TECHNICAL GROUNDS. 5. BEFORE US, AT THE OUTSET, LD. DR FOR THE REVENUE FAIRLY SUBMITTED THAT THE ADDITION OF RS.8.25 CRORES STANDS DELETED BY TH E TRIBUNAL. IN SUPPORT, LD. COUNSEL FOR THE ASSESSEE FILED THE COPY OF TH E ORDER OF THE TRIBUNAL VIDE WTA NOS. 8 TO 10/PUN/2015 FOR THE ASSESSME NT YEARS 2006-07 TO 2008-09 ORDER DATED 09-02-2017. IN SUPPO RT OF THE FACT OF DELETION OF ADDITION BY THE TRIBUNAL, LD. DR FOR THE REVENUE BROUGHT OUR ATTENTION TO CONTENTS OF PARA NO.8 OF THE SAID ORDER WHIC H IS RELEVANT. FOR THE SAKE OF COMPLETENESS, WE PROCEED TO EXTRACT THE SAME AS U NDER : 8. . . . . . BEFORE US, REVENUE HAS NOT PLACED ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE NATURE AND CHARACTER OF THE AS SET CHANGED AFTER THE ASSET WAS LEASED OUT OR THE ASSET THAT WAS EXPLOITE D BY THE ASSESSEE FOR THE PURPOSE OF ITS BUSINESS CHANGED ITS CHARACTER. IN SUCH A SITUATION, WE WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 3 ARE OF THE VIEW THAT AO WAS NOT JUSTIFIED IN TREATI NG THE LAND AS BEING LIABLE FOR WEALTH TAX UNDER THE WEALTH TAX ACT, 195 7. WE THEREFORE SET ASIDE THE ADDITION MADE BY AO IN ALL THE THREE YEAR S. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED. 6. FROM THE ABOVE, IT IS UNDISPUTED THAT THE WEALTH TAX ADDITION OF RS. 8.25 CRORES STAND DELETED AT THE LEVEL OF THE TRIBUNAL. BASED ON THE SAME, CIT(A) DELETED THE RELATABLE PENALTY TOO. 7. WE HEARD LD. DR FOR THE REVENUE AND PERUSED THE SA ID ORDERS OF THE AO/CIT(A) AND ALSO THE ORDER OF THE TRIBUNAL. CONSIDE RING THE ABOVE EXTRACT FROM THE ORDER OF THE TRIBUNAL, WE FIND THE ADDITION STANDS CONCLUSIVELY DELETED AND THEREFORE, THE LEVY OF PENALTY, DOES NOT ARIS E. 8. BEFORE PARTING WITH THE ORDER, WE FIND IT RELEVANT TO SH ARE OUR VIEWS ON FILING OF FRIVOLOUS APPEALS BY THE PR. CIT-2, AURANGABAD. THIS IS A CASE OF FRIVOLOUS APPEAL AND THE PR.CIT SHOULD NOT HAVE AUTHORIZ ED FILING THIS ONE. THE PENALTY WAS DELETED BY THE CIT(A) ON CONSIDERING THE FACT THAT THE RELEVANT ADDITION WAS DELETED BY THE ITAT. PR. CIT IS WELL AWARE OF THESE FACTS. HOW THE PENALTY IS SUSTAINABLE WHEN RELATABLE QUANTUM ADDITIONS WAS ALREADY DELETED BY THE TRIBUNAL. WE ARE SU RPRISED AT THE DECISION OF THE PR.CIT-2, AURANGABAD IN AUTHORIZING THE APP EAL TO ITAT IN THIS CASE. WE EXPECT THE AUTHORIZING OF APPEAL SHOULD BE DONE CAREFULLY BY THE CONCERNED AUTHORITIES AND EXERCISE RESTRAINT IN FILI NG OF SUCH FRIVOLOUS APPEALS. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 9. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH DAY OF NOVEMBER, 2017. SD/- SD/- (VIKAS AWASTHY) (D. KARUNAKARA RAO) /JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; DATED : 15 TH NOVEMBER, 2017. WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 4 / COPY OF THE ORDER FORWARDED TO : BY ORDER // TRUE COPY // //TRUE COPY// SENIOR PRIVATE SECRETARY , / ITAT, PUNE THE APPELLANT THE RESPONDENT THE CI T(A) - 2 , AURANGABAD CI T - 2 , AURANGABAD % , , A BENCH PUNE; / GUARD FILE.