ACIT, Chandigarh V. Ms. Sangita Khera, Ropar

ITA 416/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63921 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-08-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 12-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH GUPTA
• Section: 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.416/CHD/2012 (ASSESSMENT YEAR : 2007-08) THE A.C.I.T., VS. MS.SANGITA KHERA CIRCLE 2(1), PROP.M/S SANCHIT PHARMACEUTICALS, CHANDIGARH. PARTAP BAZAR, ROPAR. PAN: ABMPK4520G AND C.O.NO.19/CHD/2012 ARISING OUT OF ITA NO.416/CHD/2012 (ASSESSMENT YEAR : 2007-08) MS.SANGITA KHERA VS. THE A.C.I.T., PROP.M/S SANCHIT PHARMACEUTICALS, CIRCLE 2(1), PARTAP BAZAR, ROPAR. CHANDIGARH. PAN: ABMPK4520G (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 22.08.2012 DATE OF PRONOUNCEMENT : 28.08.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX(APPEALS), CHANDIGARH DAT ED 27.01.2012 RELATING TO ASSESSMENT YEAR 2007-08 AGAINST THE PEN ALTY LEVIED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT). THE ASSESSEE HAS FILED CROSS OBJECTIONS AGAINST THE APPEAL FILED BY THE REVENUE. 2 2. BOTH THE APPEAL OF THE REVENUE AND THE CROSS OBJ ECTIONS FILED BY THE ASSESSEE ON THE SIMILAR ISSUE WERE HEARD TOGETH ER AND ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAK E OF CONVENIENCE. 3. THE GROUND OF APPEAL RAISED BY THE REVENUE IN IT A NO.416/CHD/2012 READS AS UNDER: 1. THE LD. CIT(A HAS ERRED IN DELETING THE PENALTY AMOUNTING TO RS.3,79,717/- LE VIED U/S 271(1)(C). 4. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE. IN VIEW OF THE ISSUE RAISED IN THE PRESENT APPEAL T HE SAME WAS TAKEN UP FOR HEARING AND LEARNED D.R. FOR THE REVENUE PUT FO RWARD HIS CONTENTION. 5. ON GOING THROUGH THE RECORD AND AFTER HEARING LE ARNED D.R. FOR THE REVENUE WE FIND THAT THE ONLY ISSUE RAISED BY THE R EVENUE IN THE PRESENT APPEAL IS AGAINST THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT AMOUNTING TO RS.3,79,717/-. THE LEARNED D.R. FOR THE REVENUE FAIRLY POINTED OUT THAT THE PENALTY IN THE CASE WAS LEVIED IN VIEW OF THE DISALLOWANCE MADE BY INVOKING THE PROVISIONS OF SECTION 40A(IA) OF TH E ACT. 6. WE FIND THAT DURING THE COURSE OF ASSESSMENT PRO CEEDINGS ADDITION OF RS.6,27,022/- WAS MADE IN VIEW OF THE ASSESSEE H AVING FAILED TO DEDUCT TAX AT SOURCE OUT OF FREIGHT PAYMENTS BY INV OKING THE PROVISIONS OF SECTION 40A(IA) OF THE ACT. THE ASSESSING OFFIC ER LEVIED PENALTY AMOUNTING TO RS.3,79,717/- AGAINST THE SAID ADDITIO N MADE IN THE HANDS OF THE ASSESSEE. WE FIND THAT THE ISSUE OF APPLICA TION OF PROVISIONS OF SECTION 40A(IA) OF THE ACT HAS NOW BEEN SETTLED BY THE SPECIAL BENCH OF VISHAKHAPATNAM REPORTED IN ACIT VS. MERILYN SHIPPIN G & TRANSPORTS[136 ITD 23(SB)(VISHAKHAPATNAM)] AND IN V IEW THERE IS A CHANGE OF VIEW VIS--VIS ALLOWABILITY OF EXPENDITUR E IN THE HANDS OF THE ASSESSEE. EVEN OTHERWISE MERELY BECAUSE CERTAIN EX PENDITURE HAS BEEN 3 DISALLOWED IN THE HANDS OF THE ASSESSEE DOES NOT AT TRIBUTE THE SAME TO CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE P ARTICULARS OF INCOME, IN THE HANDS OF THE ASSESSEE, AS HELD BY VARIOUS CO URTS. IN THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, THERE IS NO ME RIT IN LEVY OF PENALTY IN THE HANDS OF THE ASSESSEE. IN VIEW THEREOF, WE UPHOLD THE ORDER OF THE CIT (APPEALS) IN DELETING THE PENALTY LEVIED U/S 27 1(1)(C) OF THE ACT. 7. THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE I N SUPPORT OF THE ORDER OF THE CIT (APPEALS) AND IN VIEW OF OUR DISMI SSING THE APPEAL OF THE REVENUE, THE CROSS OBJECTIONS FILED BY THE ASSE SSEE ARE ALSO DISMISSED. 8. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AN D THE CROSS OBJECTIONS FILED BY ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH DAY OF AUGUST, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 TH AUGUST, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4