Sagar Springs Pvt. Ltd., Baroda V. The ACIT, Circle-2(1)(1), Baroda

ITA 614/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4132 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 18-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILABHRA DAS GUPTA
• Section: 143(3); 80IB

Judgement Text

ITA NO. 614/AHD/2015 SAGAR SPRINGS PVT LTD VS ACIT ASSESSMENT YEAR: 2007-08 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.614/AHD/2015 (ASSESSMENT YEAR : 2007-08 ) SAGAR SPRINGS PVT.LTD. C/O.S.M. SHAH (DIRECTOR) 4, MANISHA PRODUCTIVITY ROAD NEAR DODSAL SOCIETY, VADOARA- 390 020 VS. THE ASST.COMMISSIONER OF INCOME TAX CIRCLE-4 VADODARA [PAN NO.AACCS 5494 F] (APPELLANT) .. (RESPONDENT) APPELLANT BY : WRITTEN SUBMISSION RESPONDENT BY : SHRI NILABHRA DAS GUPTA, SR.DR DATE OF HEARING 27/07/2018 DATE OF PRONOUNCEMENT 08/08/2018 O R D E R PER MS. MADHUMITA ROY, JM: 1. THE SHORT ISSUE THAT WE ARE REQUIRED TO ADJUDICA TE IN THIS APPEAL IS WHETHER OR NOT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, LEARNED CIT(A)-2, VADODARA WAS JUSTIFIED IN UPHOLDING THE IMPUGNED PENALTY OF RS.37,16,400/- IMPOSED ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. THE ASSESSMENT YEAR INVOLVED IS 2007-08 AND THE IMPUGNED CIT(A)S ORDER WAS PASSED ON 27.01.2015. 2. BRIEFLY STATED, THE RELEVANT MATERIAL FACTS ARE LIKE THIS. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSMENT U/S 143(3) OF THE ACT WAS COMPLETED VIDE ORDER DATED 21.12.2009, AT AN ASSESSED INCOME OF RS.5,78,27,806 /-, WHICH INCLUDES THE QUANTUM ADDITION OF RS.1,10,40,946/- MADE UNDER SECTION 80I B OF THE ACT, AGAINST THE RETURNED INCOME OF THE ASSESSEE AT RS.4,67,86,860/-. ON FUR THER APPEAL, THE LD. CIT(A) HAS UPHELD THE ACTION OF THE ASSESSING OFFICER VIDE HIS ORDER DATED 14.10.20111 AND CONFIRMED THE ABOVE SAID ADDITION MADE BY THE ASSES SING OFFICER UNDER SECTION 80IB OF THE ACT. ITA NO. 614/AHD/2015 SAGAR SPRINGS PVT LTD VS ACIT ASSESSMENT YEAR: 2007-08 PAGE 2 OF 2 3. SUBSEQUENT TO THE LD. CIT(A)S AFORESAID ORDER C ONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER, PENALTY U/S 271(1)(C) OF THE ACT WAS COMPLETED VIDE ORDER DATED 21.03.2013, IMPOSING A PENALTY OF RS.37,16,40 0/- BEING THE 100% OF THE TAX SOUGHT TO BE EVADED. ON FURTHER APPEAL, THE IMPUGN ED PENALTY ORDER WAS UPHELD BY THE LEARNED CIT(A) VIDE IMPUGNED ORDER DATED 27.01. 2015. THE ASSESSEE APPELLANT, BEING AGGRIEVED, IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE; HOWEVER, WRITTEN SUBMISSION WAS SUBMITTED ON 01.05. 2018, WHEREIN IT WAS POINTED OUT THAT, IN THE QUANTUM APPEAL, THE TRIBUNAL HAS DELET ED THE QUANTUM ADDITION VIDE ORDER DATED 09.12.2016 IN ITA NO. 70/AHD/2012 - COPY OF T HE ORDER IS PLACED ON RECORD. WHEN THE TRIBUNAL HAS ALREADY DELETED THE QUANTUM A DDITION IN QUESTION, THE PENALTY MADE IN RESPECT OF SUCH ADDITION CANNOT SURVIVE. W E, THEREFORE, DELETE THE IMPUGNED PENALTY OF RS.37,16,400/- AND ALLOW THE APPEAL OF T HE ASSESSEE. 5. IN THE RESULT, APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 8 TH DAY OF AUGUST, 2018. SD/- SD/- PRAMOD KUMAR MS. MADHUMITA ROY (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, THE 8 TH DAY OF AUGUST, 2018 COPIES TO: (1) THE APPELLANT,(2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A)-2, VADODARA (5) DEPARTMENTAL REPRESENTATIVE,(6) GUARD FILE BY ORDER UE //TRUE COPY// ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ................ 27.07.2018. ... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 27.07.2018..... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S.: ... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: .. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 8.8.18. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......