Asstt. C.I.T., Cir.1, Gwalior V. M/s Haryana Bedi Udyog, Gwalior

ITA 447/AGR/2010

• Counselvise Citation: 44720314 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-02-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 03-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.447/AGR/2010 ASSESSMENT YEAR: 2002-03 ASSTT. COMMISSIONER OF INCOME TAX VS. M/S HARYANA BIDI UDYOG, CIRCLE-1, GWALIOR. PHALKA BAZAR, LASHKAR, GWALIOR (PAN: AACFH 4613 G). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI WASEEM ARSHAD, SR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 29.02.2012 DATE OF PRONOUNCEMENT : 02.03.2012 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 27.09.2010 PASSED BY THE CIT(A), GWALIOR FOR THE ASSESSMENT YE AR 2002-03. 2. THE GROUND RAISED IN THE APPEAL FILED BY THE REV ENUE IS IN RESPECT OF CANCELLATION OF PENALTY OF ` 5,00,000/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. ITA NOS.447/AGR/2010 A.Y. 2002-03 2 3. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. HOW EVER, THE ASSESSEE FILED AN ADJOURNMENT APPLICATION WHICH HAS BEEN REJECTED AS THERE WAS NO GOOD REASON FOR GRANTING ADJOURNMENT 4. AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIV E, WE NOTICED THAT THE CIT(A) CANCELLED THE PENALTY LEVIED BY THE ASSESSIN G OFFICER UNDER SECTION 271(1)(C) OF THE ACT ON THE GROUND THAT THE ADDITIO N ON WHICH THE ASSESSING OFFICER LEVIED PENALTY HAS BEEN DELETED BY THE I.T.A.T. AGR A BENCH VIDE ORDER DATED 02.04.2009. THE FINDING OF CIT(A) IS REPRODUCED AS UNDER :- DURING THE COURSE OF APPEAL PROCEEDINGS, THE APPEL LANT HAS SUBMITTED COPY OF ORDER DATED 02.04.2009 OF HONBLE ITAT, AGRA IN CASE OF THE APPELLANT FOR THE ASSTT. YEAR UNDER CON SIDERATION WHEREBY ADDITIONS CONFIRMED PARLAY BY THE THEN CIT(A), GWAL IOR HAVE ALSO BEEN DELETED BY THE HONBLE ITAT. IT HAS BEEN HELD BY HONBLE SUPREME COURT IN THE CASE OF K.C. BUILDERS VS. ACIT (2004) 265 ITR 562 (SC) THAT WHERE THE ADDITIONS ARE DELETED BY TH E TRIBUNAL, PENALTY U/S. 271(1)(C) CANNOT SURVIVE THEREAFTER AND HAS TO BE CANCELLED, AS THE BASIS FOR IMPOSITION OF PENALTY CEASES TO EXIST . ACCORDINGLY, PENALTY OF ` 5,00,000/- IMPOSED BY THE ASSESSING OFFICER IS, HER EBY, CANCELLED. 5. WE ARE OF THE CONSIDERED VIEW THAT WHEN THE QUAN TUM ITSELF IS DELETED, THERE IS NO QUESTION OF LEVY OF PENALTY UNDER SECTION 271 (1) OF THE ACT. WE, THEREFORE, FIND THAT THE CIT(A) HAS RIGHTLY CANCELLED THE PENA LTY. ITA NOS.447/AGR/2010 A.Y. 2002-03 3 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED . SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 2 ND MARCH, 2012 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT RESPONDENT CIT CONCERNED CIT (APPEALS) CONCERNED D.R., ITAT AGRA BENCH, AGRA GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY