ACIT, Alwar V. KALI METALS PVT. LTD., DELHI

ITA 658/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99486 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 25-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA
• Assessee Lawyers: S L PODDAR DHK

Judgement Text

ITA NO. 658/JP/2014 AC IT , CENTRAL CIRCLE- ALWAR VS. M/S. KALI METALS (P) LTD. 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE:SHRI R.P.TOLANI, JM & SHRI VIKRAM SINGH YADA V, AM VK;DJ VIHY LA-@ ITA NO. 658/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ACIT CENTRAL CIRCLE-ALWAR ALWAR CUKE VS. M/S. KALI METALS (P) LTD. (FORMERLY LAKSHAY FARMS & ORCHARD (P) LTD. ) NOW PRIME GOLD INTERNATIONAL (P) LTD. , 5/2 PUNJABI BAGH EXTN. CLUB ROAD, DELHI LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACCK 3755 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA, JCIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR, ADVOCATE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 20 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORD ER OF THE LD. CIT(A), CENTRAL, JAIPUR DATED 25-07-2014 FOR THE ASSESSMENT YEAR 2008-09 WHEREIN THE REVENUE HAS RAISED FOLLOWING GROUNDS IN ITS APP EAL. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A), JAIPUR HAS ERRED IN DELETING THE PE NALTY U/S 271(1)(C) OF RS. 26.00 LACS IGNORING HER OWN FINDIN GS OF FACT RECORDED IN HER QUANTUM APPEAL ORDER, IN THE CASE O F ASSESSEE, WHICH HAVE NOT BEEN REBUTTED BY THE HON'BLE ITAT I N THEIR ORDER DATED 28-02-2014 RELIED UPON LD. CIT(A). ITA NO. 658/JP/2014 AC IT , CENTRAL CIRCLE- ALWAR VS. M/S. KALI METALS (P) LTD. 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A), JAIPUR HAS ERRED IN DELETING THE PE NALTY U/S 271(1)(C) BY RELYING UPON HON'BLE ITAT ORDER W HICH HAS BEEN CHALLENGED BY THE DEPARTMENT BEFORE HON'BL E HIGH COURT ON PERVERSITY OF FACTS. 2.1 AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT QUANTUM ADDITIONS FOR WHICH IMPUGNED PENALTY WAS IMPOSED HA S BEEN DELETED BY ITAT VIDE ITS ORDER DATED 28-02-2014 IN ITA NO. 267 /JP/2013 FOR THE ASSESSMENT YEAR 2008-09 BY FOLLOWING OBSERVATIONS. 14. AFTER CONSIDERING RIVAL SUBMISSION WE HAVE F OUND IT FOR A FACT THAT THE A.O. HAS NOT REJECTED THE BO OKS OF ACCOUNT OF THE ASSESSEE. FOR THE A.Y. 2008-09, ASSESSEE'S B OOKS ARE AUDITED U/S 44AB OF THE ACT AND NO ADVERSE REMARK H AS BEEN MADE BY THE AUDITOR (C.A.). COPY OF THE AUDIT REPOR T IS ENCLOSED AT PAPER BOOK 7 TO 23. RATHER, THE A.O. HAS HIMSEL F ACCEPTED THE BOOKS OF ACCOUNT. THEREFORE, WE FIND FORCE IN T HE SUBMISSION OF LD DR AND THAT WITHOUT REJECTION OF BOOKS OF ACC OUNT NO SUCH ADDITION IN THE TRADING ACCOUNT ONLY ON THE BASIS O F RETRACTED ADMISSION IS JUSTIFIED. THE ASSESSEE CAN LEGALLY RE TRACT HIS STATEMENT OF ADMISSION AND DISPROVE THE SAME WITH T HE HELP OF THE EVIDENCE. THE ASSESSEE HAS NOT ONLY RETRACTED F ROM HIS ADMISSION BUT HAS PROVED THAT THE ADMISSION MADE IS WRONG AND NOT FACED ON FACTS. THE DECISIONS ON WHICH RELI ANCE HAS BEEN PLACED AND EXTRACTED ABOVE ARE SELF EVIDENT. T HESE DECISIONS SUPPORT AND FORTIFY OUR ABOVE VIEW. WITH THE ABOVE OBSERVATION, WE ORDER DELETION OF THE ENTIRE ADDIT ION MADE IN THIS ACCOUNT AND EVEN DELETE THE SUSTAINED ADDITION OF RS. 47,87,000/- FROM THE HANDS OF THE ASSESSEE. ACCORDI NGLY, WE ALLOWED GROUND NO. (5) OF THIS APPEAL. ITA NO. 658/JP/2014 AC IT , CENTRAL CIRCLE- ALWAR VS. M/S. KALI METALS (P) LTD. 3 SINCE THE QUANTUM ADDITIONS STAND DELETED, PENALTY HAS RIGHTLY BEEN DELETED BY THE LD. CIT(A) FOLLOWING ITAT ORDER DATED 28-02 -2014 (SUPRA). 2.2 THE LD. DR IS HEARD. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. SINCE QUANTUM ADDITIONS STAND DELETED, THE LD. CIT(A) HAS RIGHTLY DELETED THE PENALTY FOLLOWING ITAT DATE D 28-02-2014 ON QUANTUM. THUS THE APPEAL OF THE REVENUE IS DISMISSE D. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 /11/2015 . SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 /11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CENTRAL CIRCLE-, ALWAR 2. IZR;FKHZ@ THE RESPONDENT- M/S. KALI METALS (P) LTD., DELHI 3. VK;DJ VK;QDRVIHY ) @ CIT(A) 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.658/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR