Sanghvi Aerospace Pvt. Ltd., Ahmedabad V. The ACIT.,(OSD)Circle-8, Ahmedabad

ITA 4123/AHD/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9290 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-09-2009
• Assessment Year: 2003-2004
• Appeal Filed On: 24-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Assessee Lawyers: N C AMIN
• Keywords: Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD C BENCH (BEFORE S/SHRI R.V.EASWAR, VICE-PRESIDENT AND P.K. BANSAL, ACCOUNTANT MEMBER) ITA NO.4123/AHD/2008 [ASSTT.YEAR : 2003-2004] SANGHVI AEROSPACE PVT. LTD. 2 ND FLOOR, P.K.HOUSE ELLISBRIDGE, AHMEDABAD. PAN : AACCS 7434 D VS. ACIT(OSD), CIR.8 AHMEDABAD. ASSESSEE BY : SHRI N.C.AMIN REVENUE BY : SHRI SHELLEY JINDAL O R D E R PER R.V.EASWAR, VICE-PRESIDENT : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE LEVY OF PENALTY OF RS.4,79,480 /- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE I.T.ACT. 2. AT THE TIME OF HEARING IT WAS POINTED OUT ON BEH ALF OF THE ASSESSEE THAT THE REASSESSMENT ORDER DATED 21-12-2005 PASSED UNDE R SECTION 143(3) R.W.S. 147 OF THE ACT, WHICH GAVE RISE TO THE IMPUGNED PEN ALTY, HAS BEEN SET ASIDE BY THE TRIBUNAL BY ORDER DATED 3-4-2009 IN ITA NO.2386 /AHD/2006. A COPY OF THE ORDER WAS FILED AND IT WAS SUBMITTED THAT THE P ENALTY HAS NO LEGS TO STAND. WE HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL AND WE FIND THAT THE REASSESSMENT HAS BEEN SET ASIDE AND HAS BEEN RESTOR ED TO THE AO WITH A DIRECTION TO HIM TO SUPPLY THE REASONS RECORDED FOR REOPENING THE ASSESSMENT TO THE ASSESSEE AND PASS A SPEAKING ORDER ON THE OBJEC TIONS RAISED BY THE ASSESSEE IN THE LIGHT OF THE JUDGMENT OF THE SUPREME COURT I N GKN DRIVESHAFTS (INDIA) LTD. VS. ITO, (2003) 259 ITR 19. SINCE THE REASSES SMENT ITSELF HAS BEEN SET ASIDE, THE PENALTY HAS NO LEGS TO STAND AND CANNOT SURVIVE. THE SAME IS ACCORDINGLY CANCELLED AND THE APPEAL OF THE ASSESSE E IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 3-9-2009. SD/- SD/- (P.K. BANSAL) ACCOUNTANT MEMBER (R.V.EASWAR) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 03-09-2009 PAGE - 2 ITA NO.4123/AHD/2008 -2- COPY OF THE ORDER FORWARDED TO: 1) : ASSESSEE 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR, ITAT, AHMEDABAD