THE DCIT, CIRCLE - 1, Kakinada V. M/s Sudha Agro Oil & chemicals Industries Limited, Samalkot

ITA 660/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2049 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 08-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: I SARISH KUMAR
• Section: 143(3)

Judgement Text

ITA NO.660/VIZAG/2013 M/S. SUDHA AGRO OIL & CHEMICALS INDUSTRIES LTD. , S AMALKOTA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.660/VIZAG/2013 ( / ASSESSMENT YEAR: 2008-09) DCIT CIRCLE - 1 KAKINADA VS. M/S. SUDHA AGRO OIL & CHEMICAL INDUSTRIES LTD. SAMALKOTA [PAN: AADCS1177N ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI I. SARISH KUMAR, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 21. 0 1.2016 / DATE OF PRONOUNCEMENT : 25.02.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A), VISAKHAPATNAM DATED 29.8.2013 FOR THE ASSES SMENT YEAR 2008-09. ITA NO.660/VIZAG/2013 M/S. SUDHA AGRO OIL & CHEMICALS INDUSTRIES LTD. , S AMALKOTA 2 2. THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGE D IN THE BUSINESS OF MANUFACTURE AND SALE OF RICE BRAN OIL, ETC., FILED ITS RETURN OF INCOME, WHICH WAS PROCESSED U/S 143(1) OF THE INCOM E TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'). THEREAFTER, ASS ESSMENT WAS COMPLETED U/S 143(3) OF THE ACT. ON PERUSAL OF ASSESSMENT RE CORD, THE A.O. HAS NOTED THAT FOR THE ASSESSMENT YEAR 2008-09, THE ASS ESSEE COMPANY HAS REPAID LOANS/DEPOSITS IN CASH EXCEEDING ` 20,000/- DURING THE FINANCIAL YEAR 2007-08 IN CONTRAVENTION OF THE PROVISIONS OF SECTION 269T OF THE ACT AND CALLED FOR THE EXPLANATIONS OF THE ASSESSEE . THE ASSESSEE HAS SUBMITTED BEFORE THE ACIT THAT IT IS ONLY RENEWAL O F THE DEPOSITS NOT REPAYMENT IN CASH. HOWEVER, THE LD. COMMISSIONER H AS NOT ACCEPTED THE EXPLANATIONS OF THE ASSESSEE AND HE HAS CONCLUD ED THAT ASSESSEE COMPANY HAS REPAID THE DEPOSITS BY CONTRAVENING THE PROVISIONS OF SECTION 269T OF THE ACT. ACCORDINGLY, PENALTY WAS LEVIED U/S 271E OF THE ACT. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) AFTER CALLING THE REMAND REPORT FROM THE ASSESSING OFFICER GAVE A FINDING THAT THE DEPOSIT TO THE TUNE OF ` 17,51,000/- REPRESENTS MERE RENEWAL OF THE DEPOSITS WITHOUT INVOLVING ANY CASH, THE PROVISIONS ITA NO.660/VIZAG/2013 M/S. SUDHA AGRO OIL & CHEMICALS INDUSTRIES LTD. , S AMALKOTA 3 OF SECTION 271E OF THE ACT WOULD NOT ATTRACT. ACCO RDINGLY, THE PENALTY TO THE TUNE OF ` 17,51,000/- IS CANCELLED. SO FAR AS REMAINING BAL ANCE OF ` 3,35,000/- IS CONCERNED, THE LD. CIT(A) GAVE A FIND ING THAT THERE IS A VIOLATION OF PROVISIONS CONTAINED IN SECTION 269T O F THE ACT IS PROVED AND THE AMOUNT IS EXIGIBLE FOR LEVYING OF PENALTY U/S 2 71E OF THE ACT AND ACCORDINGLY, CONFIRMED THE PENALTY TO THE TUNE OF ` 3,35,000/- AND APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. 4. ON FURTHER APPEAL, WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORIT IES BELOW. WE FIND THAT THE LD. CIT(A) BY CALLING THE REMAND REPORT AN D ALSO BASED ON REMAND REPORT SUBMITTED BY THE A.O., HE HAS CANCELL ED THE PENALTY ON THE GROUND THAT THE AMOUNT OF ` 17,51,000/- REPRESENT MERE RENEWAL OF DEPOSITS WITHOUT INVOLVING ANY CASH, THE PROVISIONS OF SECTION 271E OF THE ACT WOULD NOT BE ATTRACTED . IN VIEW OF THE ABOVE FINDING GIVEN BY THE LD. CIT(A), WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS APPEAL FILED BY THE REV ENUE IS DISMISSED. ITA NO.660/VIZAG/2013 M/S. SUDHA AGRO OIL & CHEMICALS INDUSTRIES LTD. , S AMALKOTA 4 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 25 TH FEB16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 25.02.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE DCIT, CIRCLE-1, KAKINADA 2. / THE RESPONDENT M/S. SUDHA AGRO OIL & CHEMICALS INDUSTRIES LTD., SAMALKOT 3. ) / THE PRINCIPAL CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM