Shri Vimal Ramniklal Ambani, Ahmedabad V. The CIT (A)-8, Ahmedabad

ITA 441/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9356 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 23-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAMIR S JANI; HARSH JANI
• Keywords: Rule 8D
• Section: 271(1)(c); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO. 441/AHD/2018 (ASSESSMENT YEAR : 2012-13) VIMAL RAMNIKLAL AMBANI, VIMAL HOUSE, NAVRANGPURA, AHMEDABAD 380 009. VS. THE CIT(A)-8 AHMEDABAD. [PAN NO. AADPA 7562 Q] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI HARSH JANI & SAMIR S. JANI, A.R. RESPONDENT BY : SHRI SATISH SOLANKI, SR. D.R. DATE OF HEARING 01/10/2019 DATE OF PRONOUNCEMENT 01/10/2019 O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE PERTAINING TO THE ASSES SMENT YEAR (AY) 2012-13 IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(APPEALS) - 8, AHMEDABAD (CIT(A) FOR SHORT) DATED 23.01.2018. THE ASSESSE E HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE LEARNED CIT (A) HAS ERRED IN LAW AND ON F ACTS BY PASSING AN ORDER U/S. 271(1)(C) OF THE ACT AND IMPOSING PENALTY OF TAX EV ADED ON INCOME ENHANCED. 2. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS BY IMPOSING PENALTY ON THE TRAVELLING EXPENSES DISALLOWED DURING APPELLATE PRO CEEDINGS TO THE EXTENT OF - 2 - ITA NO.441/AHD/2018 VIMAL RAMNIKLAL AMBANI VS. CIT(A) ASST.YEAR 2012-13 RS.2,20,870/-. HE HAS ALSO ERRED IN LAW BY IGNORING THE PRINCIPLES LAID DOWN BY THE APEX COURT IN CASE OF RELIANCE PETROPRODUCTS - 322 ITR 158 SC THAT THAT MERE REJECTION OF LEGAL CLAIM WOULD NOT AMOUNT TO FURNIS HING OF INACCURATE PARTICULARS OF INCOME AND NO PENALTY U/S 271(1)(C) CAN BE IMPOS ED. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, EDIT, DELETE, MODIFY OR CHANGE ALL OR ANY OF THE GROUNDS OF APPEAL AT THE TIME OF OR B EFORE THE HEARING OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT LEARNED CIT(A) WHI LE DECIDING THE APPEAL IN QUANTUM PROCEEDING, THE ADDITION MADE BY THE ASSESSING OFFI CER WAS ENHANCED ACCORDINGLY THE LEARNED CIT(A) INITIATED PENALTY PROCEEDINGS AND IM POSED PENALTY ON THE ENHANCED ADDITION OF INCOME. AGGRIEVED AGAINST THE PENALTY O RDER, THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE ENHANCEMENT MADE BY THE LEARNED CIT(A) HAS BEEN DEL ETED BY THIS TRIBUNAL IN ITA NOS. 2499-2500/AHD/2017. THE LEARNED COUNSEL FOR THE ASS ESSEE HAS TAKEN US THROUGH THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO. 2499/AHD/2017. IT IS THE FACT THAT THE ADDITION WAS ENHANCED, WAS MADE IN THE QUANTUM PROCEEDING BEFORE THE LEARNED CIT(A) IN RESPECT OF COMPUTATION OF DISALLOWANCE UN DER RULE 8D OF THE INCOME TAX RULES, 1962 (HEREINAFTER REFERRED AS TO THE RULE) BY INVOKING PROVISIONS OF SECTION 14A OF THE ACT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELO W. DURING THE COURSE OF HEARING THE LEARNED DR FAIRLY CONCEDED THAT THE ADDITION ON WHI CH THE IMPUGNED PENALTY IS LEVIED HAS BEEN DELETED. SINCE, THE ADDITION HAS BEEN DELE TED BY THE TRIBUNAL. THE PENALTY ON THE - 3 - ITA NO.441/AHD/2018 VIMAL RAMNIKLAL AMBANI VS. CIT(A) ASST.YEAR 2012-13 SAME IS NOT SURVIVED. WE, THEREFORE, DIRECT THE LEA RNED ASSESSING OFFICER TO DELETE THE PENALTY. GROUND RAISED IN THIS APPEAL BY THE ASSESS EE IS ALLOWED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO.441/AHD/2018 FOR THE A.Y. 2012-13 IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 01/10/2019 SD/- SD/- ( WASEEM AHMED ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 01/10/2019 PRITI YADAV, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. () / THE CIT(A)-8, AHMEDABAD. 5. , ! ' , #$%% / DR, ITAT, AHMEDABAD 6. &' () / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT. REGISTRAR) !, #$ / ITAT, AHMEDABAD 1. DATE OF DICTATION 01.10.2019 (COVERED CASE 2) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.10.2019 3. OTHER MEMBER. 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S .. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER