M/s. Priyanka Cords & Tussels Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(4), Surat

ITA 664/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6349 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-06-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 27-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K LAL
• Assessee Lawyers: U S BHATI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM) ITA NO.664/AHD/2009 A. Y.: 2003-04 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD., G-2, PARSHVA APARTMENT, NR. HANDLOOM HOUSE, CHOWKI SHERI , SURAT VS THE INCOME TAX OFFICER, WAD -1 (4), AAYAKAR BHAVAN, MAJURA GATE, SURAT PA NO. AACCP 6896 L (APPELLANT) (RESPONDENT) APPELLANT BY SHRI U. S. BHATI, AR RESPONDENT BY SHRI H. K. LAL, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-I, SURAT DATED 23 RD DECEMBER, 2008, FOR ASSESSMENT YEAR 2003-04, CHALLE NGING LEVY OF PENALTY U/S 271 (1 ( C ) OF THE IT ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASS ESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME AT RS. NIL. THE AS SESSEE WAS ENGAGED IN MANUFACTURING OF CORDS AND TUSSELS. THE ASSESSEE HAD CLAIMED EXEMPTION U/S 10A OF THE IT ACT ON THE BASI S OF ITS ESTABLISHMENT FUNCTIONING IN FREE TRADE ZONE. THE C LAIM OF THE ASSESSEE WAS HOWEVER, DISALLOWED AND INCOME WAS ASS ESSED AT RS.12,92,719/-. IT IS STATED THAT THE LEARNED CIT(A ) DISMISSED THE APPEAL OF THE ASSESSEE AND CONFIRMED THE ADDITION. THE AO VIDE ITA NO.664/AHD/2009 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD. VS ITO, WAR D-1(4), SURAT 2 SEPARATE ORDER INITIATED AND LEVIED PENALTY U/S 271 (1) (C ) OF THE IT ACT FOR CONCEALMENT OF INCOME AND FILING INACCURATE PARTICULARS WITH REGARD TO EXEMPTION CLAIMED U/S 10A OF THE IT ACT. THE LEARNED CIT(A) CONFIRMED THE PENALTY VIDE IMPUGNED ORDER IN APPEAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE QUANTUM APPEAL WAS DECIDED BY THE TRIBUNAL FOR TWO ASSESSMENT YEARS IN THE CASE OF THE SAME ASSESSEE I N ASSESSMENT YEARS 2003-04 AND 2004-05 IN ITA NO.161/AHD/2007 AN D ITA NO.3922/AHD/2007 AND VIDE ORDER DATED 22-10-2010 TH E ORDERS OF THE AUTHORITIES BELOW WERE SET ASIDE BY THE TRIBUNAL AN D THE MATTER IS RESTORED TO THE FILE OF THE AO FOR ADJUDICATING THE ISSUE AFRESH. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. C OPY OF THE SAME IS ALSO GIVEN TO THE LEARNED DR WHICH IS NOT DISPUTED BY THE LEARNED DR. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW PENALTY IS NOT LEVIABLE IN THE MATTER. ON THE BASIS OF QUAN TUM ADDITION CONFIRMED BY THE LEARNED CIT(A) DENYING EXEMPTION U /S 10A OF THE IT ACT, PENALTY WAS LEVIED. THE ORDERS OF THE AUTHORIT IES BELOW HAVE NOW BEEN SET ASIDE BY THE TRIBUNAL AND THE MATTER IS RE SORTED TO THE FILE OF THE AO FOR ADJUDICATION AFRESH, THEREFORE, NO BASIS IS LEFT FOR LEVY OF THE PENALTY. THE FOUNDATION OF LEVY OF PENALTY NO M ORE EXISTS. WE ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIE S BELOW LEVYING AND CONFIRMING THE PENALTY. PENALTY IS CANCELLED. ACCOR DINGLY, APPEAL OF THE ASSESSEE IS ALLOWED. HOWEVER, THE AO IS AT LIBE RTY TO INITIATE PENALTY PROCEEDINGS IF SO ADVISED IN ACCORDANCE WIT H LAW AFTER PASSING ASSESSMENT ORDER IN THE ASSESSMENT YEAR IN QUESTION. ITA NO.664/AHD/2009 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD. VS ITO, WAR D-1(4), SURAT 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01-07-2011 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 01-07-2011 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD