The ITO, Ward-9(1), Surat V. Shri Bhupendra I.Jogiwala, Surat

ITA 671/AHD/2012

• Counselvise Citation: 67120514 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-05-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 20-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MOHIT BALANI AR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD .. , ( .) , ! BEFORE SHRI BEFORE SHRI G.D. AGARWAL,VICE PRESIDEN T (AZ) AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.671/AHD/2012 ( / ASSESSMENT YEAR : 2005-06) INCOME TAX OFFICER WARD-9(1) SURAT / VS. SHRI BHUPENDRA I.JOGIWALA 20, AMBICA PARK SOCIETY NR.SHRADDHA SOCIETY SUMUL DAIRY ROAD SURAT 395 006 % & ./ ./ PAN/GIR NO. : AAQPJ 7144 L ( %( / APPELLANT ) .. ( )*%( / RESPONDENT ) %(+ / APPELLANT BY : SHRI NIMESH YADAV, SR.DR )*%(,+ / RESPONDENT BY : SHRI MOHIT BALANI, AR - ., /& / DATE OF HEARING 29/05/2015 0123 , /& / DATE OF PRONOUNCEMENT 05/06/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-V, SURAT (CIT(A) IN SHORT) DATED 28/11/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2005-06. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - ITA NO.671/AHD/ 2012 ITO VS. SHRI BHUPENDRA I.JOGIWALA ASST.YEAR 2005-06 - 2 - [1] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS.3,13 ,386/- LEVIED U/S.271(1)(C) OF THE ACT. [2] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. [3] IT IS, THEREFORE, PRAYED THAT THE APPELLATE O RDER OF THE CIT(A) MAY BE CANCELLED AND THE ORDER OF THE A.O. MAY BE UPHEL D. 2. AT THE OUTSET, LD.SR.DR SUBMITTED THAT IN QUANTU M PROCEEDINGS, THE COORDINATE BENCH (ITAT A BENCH AHMEDABAD) IN ITA NO.764/AHD/2010 FOR AY 2005-06 VIDE ORDER DATED 09/ 05/2013 HAS RESTORED THE ISSUE OF QUANTUM ADDITION TO THE FILE OF LD.CIT(A) FOR FRESH DECISION. 3. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 28/12/2007, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE DISALLOWANCE OF RS.9,28,407/- CLAIMED TO HAVE BEEN PAID COMMISSION TO M/S.NOVA DYESTUFF INDS.P.LTD. THE AO ALSO INITIAT ED PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT. SUBSEQUENTLY , PENALTY OF RS.3,16,383/- WAS IMPOSED VIDE ORDER DATED 25/03/20 11. AGAINST THE SAID ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DELETED THE PENALTY. ITA NO.671/AHD/ 2012 ITO VS. SHRI BHUPENDRA I.JOGIWALA ASST.YEAR 2005-06 - 3 - AGGRIEVED BY THE ORDER OF THE LD.CIT(A) NOW THE REV ENUE IS IN APPEAL BEFORE US. 4. THE LD.SR.DR SUPPORTED THE ORDER OF THE AO AND S UBMITTED THAT THE LD.CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITIO N. 4.1. ON THE CONTRARY, LD.COUNSEL FOR THE ASSESSEE S UPPORTED THE ORDER OF THE LD.CIT(A) AND SUBMITTED THAT THE ISSUE REGARDIN G DISALLOWANCE OF COMMISSION PAID OF RS.9,28,407/- TRAVELLED UPTO THE STAGE OF TRIBUNAL IN QUANTUM PROCEEDINGS BY WAY OF ITA NO.764/AHD/2010 F OR AY 2005-06 AND THE TRIBUNAL VIDE ORDER DATED 09/05/2013 WAS PL EASED TO RESTORE THE ISSUE TO THE FILE OF LD.CIT(A) FOR DECISION AFRESH. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT IN QUANTUM PROCEEDINGS, THE COORDINATE BENCH IN ITA NO.764/AHD/2010 HAS RESTORED THE ISSUE OF QUANTUM A DDITION TO THE FILE OF LD.CIT(A) FOR DECISION AFRESH. UNDER THESE FACT S, WE DEEM IT PROPER TO SET ASIDE THE ORDER OF THE LD.CIT(A) IN THE PENALTY PROCEEDINGS AS WELL TO THE FILE OF LD.CIT(A) TO DECIDE THE SAME AFRESH AFT ER PROVIDING OPPORTUNITY OF HEARING TO BOTH THE PARTIES. THUS, GROUND NO.1 OF REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE S. ITA NO.671/AHD/ 2012 ITO VS. SHRI BHUPENDRA I.JOGIWALA ASST.YEAR 2005-06 - 4 - 6. GROUND NOS.2 & 3 ARE GENERAL IN NATURE WHICH REQ UIRE NO INDEPENDENT ADJUDICATION. 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 5 TH DAY OF JUNE, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( .) ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER AHMEDABAD; DATED 5/ 06 /2015 6/..- , .-../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 789 : / CONCERNED CIT 4. : ( ) / THE CIT(A)-V, SURAT 5. ; < )-89 , /893 , 7 / DR, ITAT, AHMEDABAD 6. < => . / GUARD FILE. / BY ORDER, * ;) //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 03.6.15 (DICTATION-PAD 4+ PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..3.6.15 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 5.6.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.6.15 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