Shree Saras Spices & Food P.Ltd., Ahmedabad V. The ACIT.,Circle-8, Ahmedabad

ITA 710/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9860 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 11-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL I MEHTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 710/AHD/2013 / ASSESSMENT YEAR : 2007-08 SHREE SARAS SPICES & FOOD PVT LTD A/3, 4 TH FLOOR, CASELA TOWER, S.G. HIGHWAY, SATELLITE, AHMEDABAD PAN : AAFCS 6824 G VS ACIT (OSD), CIRCLE-8, AHMEDABAD / (APPELLANT) / (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI VIMAL I. MEHTA, SR. DR / DATE OF HEARING : 22/11/2016 / DATE OF PRONOUNCEMENT: 22/11/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, A HMEDABAD DATED 14.01.2013 FOR ASSESSMENT YEAR 2007-08. 2. THE SOLE GROUND RAISED IS AS UNDER:- THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ER RED IN LAW AND ON FACTS IN CONFIRMING THE PENALTY U/S 271(1)(C) OF THE INCO ME-TAX ACT, 1961 TO THE EXTENT OF RS.35,002/- IN RESPECT OF DISALLOWANCE OF INTEREST ON LATE DEPOSIT OF TDS AMOUNTING TO RS.1,05,005/- 3. NONE APPEARED FOR THE ASSESSEE AT THE TIME OF HE ARING. THE ISSUE BEING SMALL, THE APPEAL IS DECIDED EX-PARTE QUA THE ASSESSEE, AFTER HEARING THE LD. DR AND PERUSING THE MATERIAL AVAILABLE ON RECOR D. 4. FROM THE RECORD, IT APPEARS THAT THE ASSESSEE PA ID THE TDS AND FILED THE RETURN THEREOF BELATEDLY. THE PENALTY IN QUEST ION HAS BEEN IMPOSED U/S 271(1)(C) OF THE ACT FOR CONCEALMENT OF INCOME. 5. I HAVE HEARD THE LD. DR, PERUSED THE MATERIAL AV AILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. I N MY CONSIDERED VIEW, SMC-ITA NO. 710/AHD/2013 SHREE SARAS SPICES & FOOD PVT LTD VS. ACIT AY : 2007-08 2 WHEN THE RETURN OF TDS IS FILED, IT CLEARLY IMPLIES THAT ALL THE FACTS HAVE BEEN DISCLOSED TO THE DEPARTMENT. IN SUCH CASES PENALTY U/S 271(1)(C) OF THE ACT CANNOT BE IMPOSED AS HELD BY THE HONBLE SUPREME CO URT IN THE CASE OF CIT VS. RELIANCE PETROPRODUCTS PVT LTD, REPORTED IN [20 10] 322 ITR 158 (SC). MORE SO, IN THE PRESENT CASE, IT IS NOT THE QUESTIO N OF INCOME BUT THE TDS WHICH HAS BEEN PAID AND FOR THE DELAYED PERIOD, THE REQUISITE INTEREST HAS ALSO BEEN PAID. IN VIEW OF THESE FACTS AND CIRCUMS TANCES, THIS IS NOT A FIT CASE TO IMPOSE PENALTY U/S 271(1)(C) OF THE ACT, WHICH I S DELETED. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 22 ND NOVEMBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 22/11/2016 *BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD