The Income Tax Officer, Kanpur V. M/s Bhatia Films Sales Pvt. Ltd., Kanpur

ITA 621/LKW/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78595 (ITAT-LUCKNOW)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 08-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: PRADEEP MEHROTA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.621/LKW/2013 ASSESSMENT YEAR:2006 - 07 INCOME TAX OFFICER, WARD - 6(1), KANPUR. VS. M/S BHATIA FILMS SALES PVT. LTD., 40/78, HOSPITAL ROAD, PARADE, KANPUR. PAN:AAACB5950B (APPELLANT) (RESPONDENT) APPELLANT BY SHRI ALOK MITRA, D. R. RESPONDENT BY SHRI PRADEEP MEHROTA, ADVOCATE DATE OF HEARING 01/07/2014 DATE OF PRONOUNCEMENT 1 7 /07/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT (A) - II, KANPUR DATED 24/05/2013 FOR ASSESSMENT YEAR 2006 - 2007. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.3,92,550/ - IMPOSED BY THE AO WITHOUT APPRECIATING THE FACTS BROUGHT ON RECORD BY THE ASSESSING OFFICER. 2. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF R S.3,92,580/ - WITHOUT APPRECIATING THE FACTS THAT THE ADDITION ON WHICH PENALTY WAS IMPOSED HAD BEEN CONFIRMED BY THE CIT(A). 3. THE ORDER OF THE CIT(A), KANPUR BEING ERRONEOUS, UNJUST AND BAD IN LAW BE VACATED AND THE ORDER OF THE AO BE RESTORED. 4. THAT T HE APPELLANT CRAVES LEAVE TO MODIFY ANY OF THE GROUNDS OF APPEAL OR TAKE ADDITIONAL GROUND DURING THE PENDENCY OF THIS APPEAL. 3. LEARNED D.R. OF THE REVENUE SUPPORTED THE PENALTY ORDER WHEREAS LEARNED A.R. OF THE ASSESSEE SUPPORTED THE ORDER OF CIT(A). 2 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE ONLY ADDITION MADE BY THE ASSESSING OFFICER FOR WHICH PENALTY HAS BEEN IMPOSED BY HIM IS OF RS.13, 08,599/ - BEING LIABILITY SHOWN BY THE ASSESSEE IN THE NAME OF A GOVERNMENT COMPANY M/S HINDUSTAN PHOTO FILM MANUFACTURING CO. LTD. IT WAS SUBMITTED BY THE ASSESSEE THAT DUE TO CLOSING OF THE OFFICE OF THE CREDITOR, THE ASSESSEE WAS NOT IN A POSITION TO OBT AIN CONFIRMATION OF THEIR ACCOUNTS. ON THIS BASIS, ADDITION WAS MADE BY INVOKING THE PROVISIONS OF SECTION 41(1) OF THE ACT. IT IS NOT THE CASE OF THE ASSESSING OFFICER THAT THE ASSESSEE HAS WRITTEN BACK ITS LIABILITY AND CREDITED THE SAME IN THE PROFIT & LOSS ACCOUNT AND STILL DID NOT OFFER THE SAME FOR TAX . UNDER THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT EVEN IF THE ADDITION IS MADE , PENALTY IS NOT JUSTIFIED BECAUSE IT CANNOT BE SAID TO BE A CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. HENCE, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A). WE, THEREFORE, UPHOLD THE SAME. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 7 /07/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR