The ITO, Ward-3, Nadiad V. M/s. A.C. Industries, Kheda

ITA 54/AHD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67570 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-08-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Keywords: Opportunity of being heard
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNT ANT MEMBER THE INCOME-TAX OFFICER, WARD-3 NADIAD (APPELLANT) VS M/S A.C. INDUSTRIES, MODASA ROAD, KAPADWANJ, DIST. KHEDA PAN: AAFFA1456P (RESPONDENT) REVENUE BY: SRI P.L. KUREEL, SR.D.R. ASSESSEE BY: SRI SUNIL TALATI, A.R. DATE OF HEARING : 26-08-2013 DATE OF PRONOUNCEMENT : 27-08-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE REVENUES APPEAL AGAINST THE ORDER OF LD. CIT(A)-V BARODA DATED 09-10-2012. 2. THE ONLY EFFECTIVE GROUND TAKEN BY THE REVENUE R EADS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) ERRED IN DELETING THE PENALTY OF RS. 12,80,3 69/- LEVIED U/S ITA NO. 54/AHD/2013 ASSESSMENT YEAR 2007-08 I.T.A NO. 54/AHD/2013 A.Y. 2007-08 PAGE N O ITO VS. AC INDUSTRIES 2 271(1)(C) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE PURCHASES WERE MADE IN VIOLATION OF SECTION 40A(3) OF THE ACT . 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS ENG AGED IN THE BUSINESS OF MANUFACTURING AND SELL OF COTTON SEED, COTTON OIL A ND COTTON OILSEEDS ETC AND GINNING AND PROCESSING CHARGING. IN THIS CASE ASSE SSMENT U/S 143(3) WAS COMPLETED ASSESSING THE TOTAL INCOME AT RS. 3,81,59 ,609/- ON ACCOUNT OF DISALLOWANCE U/S 40A (3) OF THE ACT AND PENALTY PRO CEEDINGS WERE ALSO INITIATED U/S 271(1)(C) FOR FURNISHING INACCURATE P ARTICULARS OF INCOME. IN APPEAL LD. CIT(A) DELETED THE ADDITION OF RS. 3,43, 43,649/- OUT OF TOTAL ADDITION OF RS. 3,81,59,609/- AS MADE BY AO U/S 40A (3). THUS AN ADDITION OF RS. 38,15,960/- WAS CONFIRMED BY THE LD. CIT(A). THE ASSESSING OFFICER PROCEEDED TO LEVY PENALTY U/S 271(1)(C) AND AFTER G IVING OPPORTUNITY OF BEING HEARD TO ASSESSEE LEVIED THE PENALTY OF RS. 12,80,3 69/- U/S 271(1)(C) OF THE ACT. 4. IN APPEAL LD. CIT(A) HAS DELETED THIS PENALTY. AGGRIEVED BY THIS ORDER, NOW THE REVENUE IS IN APPEAL BEFORE US. 5. AT THE TIME OF HEARING AT THE OUTSET LEARNED COU NSEL OF THE ASSESSEE SUBMITTED THAT IN THE QUANTUM PROCEEDINGS THE ADDIT ION WHICH WAS THE BASIS FOR LEVYING PENALTY U/S. 271(1)(C) HAS BEEN DELETED BY THE TRIBUNAL VIDE ITS ORDER DATED 21 ST JUNE, 2013 IN ITA NO. 2177/AHD/2010. HE THEREFOR E PRAYED THAT ORDER OF LD. CIT(A) DELETING THE PENALT Y MAY KINDLY BE UPHELD. LD. DR DID NOT OBJECT TO THIS PRAYER OF THE ASSESSE E. SINCE IN THE QUANTUM PROCEEDINGS HONBLE TRIBUNAL HAS DELETED THE ADDITI ON OF RS. 38,15,961/- I.T.A NO. 54/AHD/2013 A.Y. 2007-08 PAGE N O ITO VS. AC INDUSTRIES 3 WHICH WAS THE BASIS FOR LEVYING PENALTY OF RS. 12, 80,369/- U/S 271(1)(C) OF THE ACT HAS BEEN DELETED VIDE ITS ORDER DATED 21 ST JUNE, 2013 IN ITA NO. 2177/AHD/2010, THE PENALTY HAS NO LEGS TO STAND AND THEREFORE WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER PASSED BY LD. CIT(A) DELETING THE PENALTY AND THE SAME IS HEREBY UPHELD. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 27/08/2013 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,