Gujarat Metal Cast Industries Ltd., Baroda V. The DY.CIT., Circle-1(1), Baroda

ITA 457/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6071 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-04-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 11-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH MEENA
• Assessee Lawyers: T P HEMANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA NO. 457/AHD/2014 (ASSESSMENT YEAR: 2005-06) GUJARAT METAL CAST INDUSTRIES LIMITED, 11, JAROD SAMALYA ROAD, NEAR HARIPURA BUS STAND, VILLAGE GARADHIYA, TALUKA SAVLI, DISTRICT BARODA - 392520 APPELLANT VS. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), AAYAKAR BHAVAN, BARODA - 390007 RESP ONDENT PAN: AAACG8433G /BY ASSESSEE : SHRI T. P. HEMANI, A.R. /BY REVENUE : SHRI OM PRAKASH MEENA, SR. D.R. /DATE OF HEARING : 27.04.2017 /DATE OF PRONOUNCEMENT : 28.04.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2005-06 ARISES AGAINST THE CIT(A)-I, BARODAS ORDER DATED 31.12.2013, PASSED I N APPEAL NO. CAB- 1/21/2012-13 UPHOLDING ASSESSING OFFICERS ACTION I MPOSING PENALTY OF ITA NO. 457/AHD/2014 (GUJARAT METAL CAST INDUSTRIES LTD. VS. DCIT) A.Y. 2005-06 - 2 - RS.28,73,000/- IN ORDER DATED 27.03.2012 , IN PROCE EDINGS U/S.271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT; RESPE CTIVELY. 2. WE NOTICE AT THE OUTSET THAT THE ABOVE IMPUGNED PENALTY PERTAINS TO ADDITION OF RS.77,81,667/- IN THE NATURE OF INTERES T WAIVER. THE ASSESSING OFFICER ADDED THE SAME AS ASSESSEES INCOME AFTER R EJECTING ITS CONTENTION THAT THE SAME WAS NEVER CLAIMED SINCE THE ABOVE SUM STOO D CONVERTED IT INTO A LOAN BY THE STATE BANK OF SAURASHTRA. HE THEREFORE FRAMED ASSESSMENT MAKING THE ABOVE ADDITION ON 03.12.2007 AND FURTHER INITIATED THE IMPUGNED PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT. THE CIT(A) ALSO CONFIRMED THE ASSESSING OFFICERS ACTION IN HIS ORDER DATED 1 6.11.2010. THE ASSESSEE FILED ITA NO.266/AHD/2011 BEFORE THIS TRIBUNAL WHER EIN A CO-ORDINATE BENCH REMITTED THE ABOVE ISSUE BACK TO THE ASSESSING OFFI CER TO VERIFY WHETHER THE ABOVE AMOUNT REPRESENTED CONVERSION OF INTEREST INT O LOAN IN QUESTION. THIS QUANTUM ORDER IS DATED 15.05.2015. 3. IT EMERGES FROM A PERUSAL OF CASE FILE THAT THE ASSESSING OFFICER IN THE MEANTIME IMPOSED THE IMPUGNED PENALTY OF RS.28.73LA CS BY TREATING THE ABOVE QUANTUM ADDITION AS AN INSTANCE OF FURNISHING OF INACCURATE PARTICULARS OF INCOME. LEARNED CIT(A) CONFIRMS THE SAME IN HIS LOWER APPELLATE ORDER. IT IS THEREFORE CLEAR THAT THE PENALTY IN QUESTION HAS NO LEGS TO STAND AS ON DATE IN VIEW OF THIS TRIBUNALS ABOVE REMAND ORDER IN QU ANTUM APPEAL. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THIS F ACTUAL POSITION. WE ITA NO. 457/AHD/2014 (GUJARAT METAL CAST INDUSTRIES LTD. VS. DCIT) A.Y. 2005-06 - 3 - THEREFORE ALLOW THE ASSESSEES APPEAL CHALLENGING C ORRECTNESS OF THE PENALTY IN QUESTION AT THIS STAGE WITH LIBERTY TO THE ASSESSIN G OFFICER TO INITIATE THE SAME AFRESH IN VIEW OF QUANTUM PROCEEDINGS BEING FINALIZ ED IN CONSEQUENTIAL ROUND HEREINABOVE. WE DELETE THE IMPUGNED PENALTY ACCORD INGLY. 4. THE ASSESSEE SUCCEEDS IN ITS INSTANT APPEAL IN A BOVE TERMS. [PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF APRIL, 2017.] SD/- S D/- ( PRADIP KUMAR KEDIA ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL ME MBER AHMEDABAD: DATED 28/04/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0