The ACIT,Vapi Circle, Vapi V. United Engineering Works, SILVASSA

ITA 422/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60252 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 15-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , !', #$ # % BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.422/AHD/2012 ( ( ( ( ( / / / / ASSESSMENT YEAR : 2005-06) ASST.CIT VAPI CIRCLE VAPI / VS. UNITED ENGINEERING WORKS PLOT NO.45 KHADOLI INDUSTRIAL ESTATE SILVASSA ) #$ ./*+ ./ PAN/GIR NO. : AAFU 7356 B ( ), / // / APPELLANT ) .. ( -.), / RESPONDENT ) ), / # / APPELLANT BY : SHRI SAMIR TEKRIWAL, SR.D.R. -.), 0 / # / RESPONDENT BY : -NONE- 1 0 '$ / / / / DATE OF HEARING : 16/04/12 23( 0 '$ / DATE OF PRONOUNCEMENT : 20/4/12 #4 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-VALSAD DATED 19.11.2011 AND THE ONLY GROUND IS IN RESPECT OF DELETION OF PENA LTY LEVIED U/S.271(1)(C) OF THE I.T.ACT. 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING PENALTY ORDER PASSED U/S.271(1)(C) OF THE I.T. ACT, 1961 DATED 29 /03/2010 AND ASSESSMENT ORDER MADE U/S.143(3) DATED 28/12/2007 WERE THAT THE ITA NO.422/AHD/ 2012 ASST.CIT VS. UNITED ENGG WORKS ASST.YEAR - 2005-06 - 2 - ASSESSEE-FIRM IS ENGAGED IN THE MANUFACTURING OF M S INGOTS PROFILES. THE ASSESSEE IS STATED TO BE ELIGIBLE FOR A DEDUCTI ON U/S.80-IB OF THE I.T.ACT SINCE SITUATED IN A BACKWARD UNION TERRITOR Y. IT WAS NOTED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAS SHOWN A SUM OF RS.9,75,093/- UNDER THE HEAD SUNDRY CREDITORS IN THE NAME OF TH AKKURSONS AUTO ANCILLARY (I) LTD. ON VERIFICATION FROM THE SAID P ARTY, IT WAS NOTICED BY THE ASSESSING OFFICER THAT NO AMOUNT WAS SHOWN RECE IVABLE FROM THE ASSESSEE. THE IMPUGNED AMOUNT WAS ADDED AS UNEXPLA INED CREDITOR. IN THE FIRST APPEAL, THE SAID QUANTUM ADDITION WAS CON FIRMED BY THE LD.CIT(A). DURING THE COURSE OF PENALTY PROCEEDING S, CERTAIN DETAILS WERE PROVIDED TO THE ASSESSING OFFICER ALONG WITH C OPY OF LEDGER ACCOUNT OF THE CREDITOR AND COPIES OF THE BILLS ISSUED BY T HE SAID CREDITOR. AN ANOTHER FACT WAS ALSO NARRATED THAT CONSIDERING THE ACTION OF THE ASSESSING OFFICER THAT THE LIABILITY HAS CEASED TO EXIST, THEREFORE AFTER RECEIVING THE ASSESSMENT ORDER, THE ASSESSEE HAS AD DED BACK THE AMOUNT DUE AND BY INVOKING THE PROVISIONS OF SECTION 41 OF FERED TO TAX IN FINANCIAL YEAR 2007-08. THE LD.CIT(A) HAS DISCUSSE D CERTAIN PROVISIONS OF THE ACT AND PLACING RELIANCE ON CIT VS. SUGAULI SUGAR WORKS P.LTD. 236 ITR 518 (SC) AND CIT VS. CHASE BRIGHT STEEL LTD . 177 ITR 128 (BOM.) HAS HELD THAT AS FAR AS THE QUESTION OF LEV Y OF PENALTY IS CONCERNED, CONSIDERING THE SUBSEQUENT ACTION OF THE ASSESSEE, THE ISSUE OF CONCEALMENT IS TO BE DECIDED IN THE LIGHT OF THE RA TIO LAID DOWN IN THE JUDGEMENT OF RELIANCE PETROPRODUCTS (P.) LTD. 322 I TR 158 (SC). THE LEARNED CIT(APPEALS) HAS HELD THAT ALL THE RELEVANT INFORMATION WAS DULY DISCLOSED BY THE ASSESSEE AND THERE WAS NO ALLEGATI ON THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS. ITA NO.422/AHD/ 2012 ASST.CIT VS. UNITED ENGG WORKS ASST.YEAR - 2005-06 - 3 - 3. ON THE DATE OF HEARING, NO ONE WAS PRESENT FROM THE SIDE OF THE RESPONDENT-ASSESSEE, HOWEVER, WE HAVE HEARD LD.DR W HO HAS PLACED RELIANCE ON THE PENALTY ORDER. CONSIDERING THE TO TALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE; AS ALSO THE LEGAL POSITI ON, AS DISCUSSED HEREINABOVE, WE HEREBY CONFIRM THE LEGAL AS WELL AS FACTUAL FINDING OF THE LEARNED CIT(APPEALS). ACCORDINGLY WE HOLD THAT THI S WAS NOT A FIT CASE FOR LEVY OF CONCEALMENT PENALTY. RESULTANTLY, GROU ND OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED . SD/- SD/- ( ANIL CHATURVEDI ) ( MUKUL KR . SHRAWAT ) ACCOUNTANT MEMBER JUDI CIAL MEMBER AHMEDABAD; DATED 20 / 4 /2012 5'.., .../ T.C. NAIR, SR. PS #4 0 -6 7#6( #4 0 -6 7#6( #4 0 -6 7#6( #4 0 -6 7#6(/ COPY OF THE ORDER FORWARDED TO : 1. ), / THE APPELLANT 2. -.), / THE RESPONDENT. 3. 8 / CONCERNED CIT 4. 8() / THE CIT(A)-VALSAD 5. 6;< - , , / DR, ITAT, AHMEDABAD 6. <= >1 / GUARD FILE. #4 #4 #4 #4 / BY ORDER, .6 - //TRUE COPY// ? ?? ?/ // / * * * * ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD