M/s Anuradha Masala Udyog (P) Ltd., Kanpur V. Asstt. Commissioner of Income Tax-4, Kanpur

ITA 518/LKW/2014

• Counselvise Citation: 51823714 RSA 2014
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1998-1999
• Appeal Filed On: 03-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y C SRIVASTAVA
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 518/LKW/2014 ASSESSMENT YEAR: 1998 - 99 M/S ANURADHA MASAL UDYOG (P) LTD. KANPUR V. ACIT - 4 KANPUR PAN: AAGCA6771B (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. RAKESH GARG, ADVOCATE RESPONDENT BY: SHRI. Y. C. SRIVASTAVA, D.R. DATE OF HEARING: 07 0 8 2014 DATE OF PRONOUNCEMENT: 21 0 8 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPE AL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) CONFIRMING THE PENALTY OF RS.20 LAKHS LEVIED UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'). 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD . COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT THE PENALTY WAS LEVIED FOR THE ADDITIONS MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT IN FACTORY BUILDING; DISALLOWANCE OF VEHICLE RUNNING EXPENSES; STAFF WELFARE EXPENSES, CASH CREDIT, ETC. THESE AD DITIONS WERE FINALLY DELETED BY THE TRIBUNAL VIDE ITS ORDER DATED 7.1.2014. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. IT WAS FURTHER CONTENDED THAT ONCE THE FOUNDATION OF IMPOSING PENALTY UNDER SECTION 271(1)(C) OF THE ACT HAS BEEN ERODED, T HE AFORESAID PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS NOT SUSTAINABLE IN THE EYES OF LAW. 3 . THE LD. D.R., DID NOT DISPUTE THE FACTUAL ASPECT OF THE MATTER. 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES, VIS - - VIS THE ORDER OF THE TRIBUNA L IN QUANTUM ADDITIONS IN I.T.A. NO. 257/LKW/2002 AND 1208/LKW/2006, WE FIND THAT THE ADDITIONS , ON THE BASIS OF WHICH PENALTY UNDER SECTION 271(1)(C) OF THE ACT HAS BEEN LEVIED, WAS DELETED BY THE TRIBUNAL. THEREFORE, ON ACCOU N T OF EROSION OF THE FOUNDAT ION FOR THE PENALTY SO LEVIED, THE IMPUGNED PENALTY IS NOT SUSTAINABLE IN THE EYES OF LAW. WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE PENALTY. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED ORDER PRONOUNCED IN THE OPEN C OURT ON 21.8.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21 ST AUGUST , 2014 JJ: 0708 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )