The DCIT, Circle-1(2), Baroda V. M/s. Kirti Construction, Baroda

ITA 625/AHD/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5129 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ITA NO. 625/AHD/2015 ( / ASSESSMENT YEAR : 2009-10) THE DY.CIT CIRCLE-1(2) BARODA / VS. M/S.KIRTI CONSTRUCTION AYODHYA TOWNSHIP KEDAR PARK NR.MOTINAGAR-3 BARODA-390 009 ./ ./ PAN/GIR NO. : AAGFK7066A ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR.DR / RESPONDENT BY : MS.URVASHI SHODHAN, ADVOCATE / DATE OF HEARING 16/01/2019 !'# / DATE OF PRONOUNCEMENT 01/02/2019 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS)II, BARODA [CIT(A) IN SHORT] VIDE APPEAL NO.CAB/II-439/ 13-14 DATED 11.11.2014 ARISING IN THE ASSESSMENT ORDER PASSED BY THE ITO, WARD- 2(1), UNDER S.143(3) R.W.S.147 OF THE INCOME TAX A CT, 1961(HEREINAFTER REFERRED TO AS 'THE ACT') DATED 23.11.2011 AND PEN ALTY ORDER PASSED BY THE ACIT, CIRCLE-2(1) U/S 271(1)(C) OF THE ACT DATE D 19/03/2014 RELEVANT TO ASSESSMENT YEAR (AY) 2009-10. ITA NO.625/AHD/2015 DCIT VS.M/S.KIRTI CONSTRUCTION ASST .YEAR - 2009-10 - 2 - 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE B ROUGHT TO OUR NOTICE THAT THE QUANTUM ADDITION IN RESPECT OF WHICH THE P ENALTY WAS LEVIED U/S 271(1) OF THE ACT HAS BEEN DELETED BY THIS HONBLE TRIBUNAL IN ITA NO. 2434/AHD/2012 & OTHERS FOR AY 2009-10 & OTHERS VIDE ORDER DATED 13/11/2014. ACCORDINGLY, THE LD.AR FOR THE ASSESSE E SUBMITTED THAT THE PENALTY IMPOSED U/S 271(1)(C) OF THE ACT IS NOT SUS TAINABLE. THE LD.AR VEHEMENTLY SUPPORTED THE ORDER OF THE LD.CIT(A). 3. ON THE OTHER HAND, THE LD.DR VEHEMENTLY SUPPORTE D THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE PROVISIONS OF SECTION 271 (1)(C) OF THE ACT REQUIRE TO LEVY THE PENALTY EITHER ON ACCOUNT OF CO NCEALMENT OF THE INCOME OR INACCURATE PARTICULARS OF INCOME. AS IN T HE CASE ON HAND, THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT O F FURNISHING INACCURATE PARTICULARS OF INCOME HAS BEEN DELETED B Y THE ITAT IN OWN CASE OF THE ASSESSEE (SUPRA). THEREFORE, WE HOLD TH AT THE PENALTY ORDER PASSED U/S 271(1)(C) OF THE ACT IS NOT SUSTAINABLE. 4.1. AS THE QUANTUM ADDITION HAS ALREADY BEEN DELET ED, THEREFORE, THE PENALTY IMPOSED ON SUCH ADDITION WILL NOT SURVIVE. ACCORDINGLY, WE DO NOT FIND ANY REASON TO DISTURB THE FINDINGS OF THE LD.CIT(A). HENCE, THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. ITA NO.625/AHD/2015 DCIT VS.M/S.KIRTI CONSTRUCTION ASST .YEAR - 2009-10 - 3 - 5. IN THE RESULT, THE REVENUES APPEAL STANDS DISMI SSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 0 1/02/2019 SD/- SD/- ( RAJPAL YADAV ) ( WASEEM AHMED ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 01/02/2019 &.., .(.. / T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-II, BARODA 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) $%, / ITAT, AHMEDABAD 1. DATE OF DICTATION 21.1.2019(DICTATION PAD 5-PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 22.1.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.1.2.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1.2.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER