The ITO, Ward-6(1), Ahmedabad V. M/s. Radheshyam Fibres, Ahmedabad

ITA 527/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8336 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 19-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed dividend
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE ITO, WD. 6(1), AHMEDABAD (APPELLANT) VS M/S. RADHESHYAM FIBRES, C/O SHRI VALLABH LAXMI COTTON PVT. LTD. KHEDA - BAVLA ROAD, DHOLKA, AHMEDABAD PAN:AAGFR0800B (RESPONDENT) REVENUE BY : S H RI PARSOON KABRA , SR. D . R. ASSESSEE BY: WRITTEN SUBMISSION DATE OF HEARING : 08 - 09 - 2 017 DATE OF PRONOUNCEMENT : 09 - 10 - 2 017 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REV ENUE S APPEAL FOR A.Y. 2009 - 10 , AR IS ES FROM ORDER OF THE CIT(A) - XI, AHMEDABAD DATED 27 - 06 - 2012 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: - I T A NO . 527 / A HD/20 14 A SSES SMENT YEAR 200 9 - 10 I.T.A NO. 527 /AHD/20 14 A.Y. 2009 - 10 PAGE NO ITO VS. M/S. RADHESHYAM FIBRES 2 I) THE ID. CIT( A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.20,63, - 193/ - IMPOSED U/S.271(1)(C) OF THE ACT. II) THE ID. CIT(A) HAS FURTHER ERRED IN IJAW AND ON FACTS IN RELYING ON THE DECISION IN THE CASE OF C1T VS. EIAROTIA TIN WORKS(221 ITR 661(GUJ) WHEREIN A TOTALLY DIFFERENT SET OF FACTS WAS CONSIDERED AND WAS QUITE DISTINGUISHABLE WITH THE FACTS OF THE ASSESSEE'S CASE. III) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER IMPOSING OF THE PENALTY PASSED BY THE ASSESSING OFFICER. IV) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A.) MAY BE SET - ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. BRIEF FACTS OF THIS CASE IS THAT THE ASSESSING OFFICER HAS LEVIED A PENALTY OF RS. 20 , 63 , 193/ - FOR CONCEALING THE PARTICULARS OF INCOME BASED O N ADDITION OF RS. 60,70,000/ - UNDER THE PROVISIONS OF SECTION 2(22)(E) OF THE ACT AS DEEMED DIVIDEND WHICH WAS MADE IN THE ASSESSMENT ORDER PASSED U/S 143(3) OF THE ACT FOR THE YEAR UNDER CONSIDERATION IN THE CASE OF THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH T HE SIDES. DURING THE COURSE OF APPELLATE PROCEEDINGS, IT W A S BROUGHT TO OUR NOTICE THAT THE CO - ORDINATE BEN CH OF THE ITAT AHMEDABAD VIDE IT A NO. 1901/AHD/2012 DATED 11/08/2016 HAS DELETED THE QUANTUM ADDITION ON THE BASIS OF WHICH IMPUGNED PENALTY WAS LEVIED. THE RELEVANT PART OF THE FINDINGS OF THE CO - ORDINATE BENCH IS REPRODUCED AS UNDER: - 4.2. IN THE PRESENT CASE, IT IS AN UNDISPUTED FACT THAT THE ASSESSEE IS NOT A REGISTERED SHAREHOLDER OF M/S. SHREE VALLABHALAXMI COTTON PVT. LTD. IN VIEW OF THE AFORESAID FACTS AND FOLLOWING THE AFORESAID DECISION OF SPECIAL BENCH OF TRIBUNAL, WE ARE OF THE VIEW THAT NO ADDITION COULD BE MADE U/S.2(22)(E) OF THE ACT TO THE PRESENT CASE. WE THEREFORE SET ASIDE THE ORDER OF THE ID.CIT(A) AND DELETE THE ADDITION MADE U/S.2(22)(E) OF THE ACT. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THESE FACTS. AFTER CONSIDERING THE FINDINGS OF THE CO - ORDIN ATE BENCH AS ABOVE, THE I.T.A NO. 527 /AHD/20 14 A.Y. 2009 - 10 PAGE NO ITO VS. M/S. RADHESHYAM FIBRES 3 PENALTY LEVIED IN THIS CASE HAS BECOME INFRUCTUOUS , THEREFORE, THE APPEAL OF THE REVENUE IS REJECTED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 09 - 10 - 201 7 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 09 /10 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,