The ITO,Vapi-Ward-4, Nani Daman V. M/s. N-Core Cables, Daman

ITA 4144/AHD/2008

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1757 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 10-03-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 29-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S SOURYAWANSISR
• Assessee Lawyers: M K PATEL
• Keywords: Difference of opinion
• Section: 143(3); 80IB

Judgement Text

ITA NO.414 4/AHD/2007 ASSESSMENT YEAR 2004-05 1 IN THE INCOME_TAX APPELLATE TRIBUNAL D BENCH,AH MEDABAD BEFORE SHRI G.D. AGARWAL V.P. & SHRI MUKUL KR SHRAWAT. I.T.A. NO 4144 /AHD/2008. (ASSESSMENT YEAR: 2004-05) INCOME TAX OFFICER, VAPI WARD 4, DR. JEEVANJI HOTEL BUILDING, DEVKA ROAD, KATHIRIA, NANI DAMAN. (APPELLANT) VS. M/S. N-CORE CABLES, GALA NO.7, PLOT NO.10, PREMIER INDUSTRIAL ESTATE, KACHIGAM, DAMAN. (RESPONDENT) PAN: AAEFN 7954 N APPELLANT BY : SHRI G. S. SOURYAWANSI,SR. D .R. RESPONDENT BY : SHRI M. K. PATEL. ( (( ( )/ )/)/ )/ ORDER PER: SHRI MUKUL KUMAR SHRAWAT, J.M. THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE ARI SING FROM THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-VALSAD DATED 2 2-10-2008. THE REVENUE HAS CHALLENGED THE DELETION OF PENALTY OF RS.2,87,1 15/- LEVIED UNDER SECTION 271(1)(C ) OF THE ACT. 2. THE FACTS IN BRIEF AS EMERGED FROM THE CORRESPON DING PENALTY ORDER PASSED UNDER SECTION 271(1)(C ) DATED 31-3-2008 AND THE ASSESSMENT ORDER PASSED U/S. 143(3) DATED 29-12-2006 WERE THAT THE A SSESSEE FIRM IS ENGAGED IN THE BUSINESS OF INSULATED CABLE WITH PVC TAPE AND PLASTIC GRANULES ETC. IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAD CLAIMED DEDUCTION U/S. ITA NO.414 4/AHD/2007 ASSESSMENT YEAR 2004-05 2 80IB IN RESPECT OF JOB WORK FROM M/S. NANGALWALA CH EMICAL INDUSTRIES. THIS ISSUE ABOUT THE ADMISSIBILITY OF DEDUCTION U/S. 80IB HAD GONE UP TO THE TRIBUNAL AND RESPECTED CO-ORDINATE BENCH-C VIDE ITA NO.3207/AHD/ 2007 ASSESSMENT YEAR 2004-05 ORDER DATED 12-11-2010 HAS RESTORED IT BACK TO THE FILE OF THE CIT (A) WITH CERTAIN DIRECTIONS. IN VIEW OF THIS, THE PRELI MINARY ARGUMENT OF LD. AUTHORIZED REPRESENTATIVE SHRI M.K. PATEL IS THAT THE ISSUE BE ING DEBATABLE, THEREFORE, OUT OF THE AMBITS OF LEVY OF PENALTY. IT HAS ALSO BEEN AR GUED THAT ALL THE FACTS IN RELATION TO CLAIM OF DEDUCTION U/S. 80I WERE DULY PLACED BEF ORE THE ASSESSING OFFICER, HOWEVER, DUE TO DIFFERENCE OF OPINION THE EXPLANATI ON OF THE ASSESSEE WAS REJECTED. ON A CAREFUL PERUSAL IT IS EVIDENT THAT T HERE IS NO FINDING OF FACT IN THE ASSESSMENT ORDER THAT EITHER THE CLAIM WAS FOUND BO GUS OR NON-GENUINE. IT IS ALSO NOT THE CASE OF THE REVENUE, WHILE LEVYING THE CONCEALMENT PENALTY, THAT THERE WAS EITHER A WRONG STATEMENT OR A FALSE MATER IAL WAS FURNISHED ALONG WITH THE RETURN IN RESPECT OF THE IMPUGNED CLAIM. RATHER IT IS A CASE WHERE A DEDUCTION WAS DISALLOWED DUE TO DIFFERENCE OF OPINION. UNDER THESE CIRCUMSTANCES, IN OUR CONSIDERED OPINION THE ISSUE OF CONCEALMENT NOW STO OD DIRECTLY COVERED BY A LATEST DECISION OF RELIANCE PETROPRODUCTS LTD., 322 ITR 158 WHEREIN THE OBSERVATION OF THE HONBLE COURT WAS AS UNDER :- WHERE THERE IS NO FINDING THAT ANY DETAILS SUPPLI ED BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT O R ERRONEOUS OR FALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271(1) (C). A MERE MAKING OF A CLAIM, WHICH IS NOT SUSTAINABLE IN LAW, BY ITSELF, WILL NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS REG ARDING THE INCOME OF THE ASSESSEE. SUCH A CLAIM MADE IN THE RETURN C ANNOT AMOUNT TO FURNISHING INACCURATE PARTICULARS. DECISION OF THE GUJARAT HIGH COURT AFFIRMED. RESPECTFULLY FOLLOWING THIS DECISION WE HEREBY CONF IRM THE FINDING OF THE LD. C.I.T. (A) AND DISMISS THIS GROUND OF THE REVENUE.. ITA NO.414 4/AHD/2007 ASSESSMENT YEAR 2004-05 3 3. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 18/ 3/2011. SD/- SD/- (G. D. AGARWAL) (MUKUL KUMAR SHRAWAT) VICE PRESIDENT JUDICIAL MEMBER. AHMEDABAD. DATED: 18 / 3 /2011. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-VALSAD. 4. THE CIT CONCERNED. 5. THE DR.,ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDA BAD. ITA NO.414 4/AHD/2007 ASSESSMENT YEAR 2004-05 4 1.DATE OF DICTATION 10-3-2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 11-3- 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S -3-2011. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT -3-2011 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S -3 -2011 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK -3 -2011. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..