M/S TECH FORCE COMPOSITES P. LTD., Indore V. THE ACIT-3(1), Indore

ITA 496/IND/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2358 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 11-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.496/IND/2016 ASSESSMENT YEAR: 2009-10 TECH FORCE COMPOSITES C/O C.H. PADLIYA & CO CHARTERED ACCOUNTANTS 90, DAWA BAZAR 2 ND FLOOR 13-14 RTN MARG INDORE / VS. A CIT - 3 ( 1 ), INDORE (APPELLANT) (REVENUE ) P.A. NO. AAACT6376M APPELLANT BY SHRI SUDHIR PADLIYA CA , REVENUE BY SHRI RAJIV JAIN , SR. DR DATE OF HEARING: 02.01.2018 DATE OF PRONOUNCEMENT: 12.01.2018 / O R D E R PER MANISH BORAD, A.M: THIS APPEAL OF ASSESSEE PERTAINING TO A.Y. 2009-10 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-II, INDORE, (IN SHORT CIT(A)), DATED 29.01.2016 WHICH IS ARISING OUT OF THE ORDER U/S 271(1)(C) OF THE INCOME TAX ACT 1961( HEREINAFTER CALLED AS THE ACT) FRAMED ON 30.05.2014 BY ACIT 3 (1), INDORE. TECH FORCE COMPOSITS 2 2 . THE SOLE GRIEVANCE OF THE ASSESSEE IS AGAINST THE ORDER OF LD. CIT(A) CONFIRMING THE ACTION OF LD. AO IMPOSING PEN ALTY U/S 271(1)(C) OF THE ACT AT RS.4,25,970/- ON THE ADDIT ION MADE ON ACCOUNT OF DISALLOWANCE MADE U/S 43B OF THE ACT, TO WARDS OUTSTANDING VAT, LIABILITY OF RS.13,78,542/-. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD PLACED BEFORE US. THE FACTS ARE THAT THE ASSESSEE HAD SHOW N SALES TAX DEFERMENT LOAN OF RS.13,78,542.59/- AS UNSECURED LO AN. THE ASSESSEE WAS ASKED TO FURNISH CERTIFICATE OF CONVER SION OF SALES TAX INTO LOAN LIABILITY AND ON PERUSAL OF THE SAME IT W AS OBSERVED THAT SALES TAX DEPARTMENT ALLOWED THE SALES TAX DEFERMEN T FOR A.Y. 2003-04 TO A.Y. 2008-09 AND THE ASSESSEE WAS REQUIR ED TO PAY OUTSTANDING SALES TAX LIABILITY BEFORE 31 ST MARCH 2009 AND ACCORDINGLY ADDITION WAS MADE AT RS.13,78,542/- FOR DISALLOWANCE U/S 43B. SUBSEQUENTLY, PENALTY AT RS.4,25,970/- WAS IMPOSED FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME. 4. PRESENT APPEAL RELATED TO PENALTY ISSUE U/S 271( 1)(C) OF THE ACT WHICH RELATES TO IMPOSITION OF PENALTY FOR FURNISHI NG OF INACCURATE PARTICULARS OF INCOME OR CONCEALMENT OF PARTICULARS OF INCOME. BOTH THE LOWER AUTHORITIES HAVE CONFIRMED THE PENALTY FO R FURNISHING INACCURATE PARTICULARS OF INCOME. 5. WE OBSERVE THAT THE ALLEGED VAT LIABILITY OF RS. 13,78,542/- WAS PAID BY THE ASSESSEE IN SUBSEQUENT F.Y. 2009-10 AS IT WAS REQUIRED TO PAY IN F.Y. 2009-10 ONLY. WE FURTHER FIND SUBSTA NCE IN THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE LOWER A UTHORITIES THAT THERE WAS NO INFIRMITY IN THE FIGURE OF SALES TAX L IABILITY, DETAILS TECH FORCE COMPOSITS 3 FURNISHED BEFORE THE ASSESSING AUTHORITY AS WELL AS THE CERTIFICATE FOR DEFERMENT OF SALES TAX LIABILITY PROVIDED BY THE SA LES TAX DEPARTMENT. RATHER, THE LD. AO HAS HIMSELF ACCEPTED THAT THE DEFERMENT WAS GRANTED UP TO 31.03.2009 WHICH SUO MO TO ESTABLISH THAT THE ASSESSEE WAS REQUIRED TO PAY THE ALLEGED S ALES TAX LIABILITY IN F.Y. 2009-10 ONLY. 6. THE FACTS DISCUSSED ABOVE CLEARLY ESTABLISHED TH AT THE ASSESSEE HAS NOT FURNISHED INACCURATE PARTICULARS OF INCOME AND ALL THE INFORMATION PROVIDED BY THE ASSESSEE WERE DEVOID OF ANY ERROR. WE THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, ARE OF THE VIEW, THAT THE PENALTY IMPOSED U/S 271(1)(C) OF THE ACT HAS NO LEGS TO STAND AND THEREFORE, WE DELETED THE PENALTY OF RS.4,25,970/- LEVIED U/S 271(1)(C) OF THE ACT AND ALLOW THE GROUN DS RAISED BY THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 12 .01. 2018. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 12 / 01/2018 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE