Fuel Instruments & Engineers Pvt. Ltd., Ichalkaranji V. ACIT, Ichalkaranji

ITA 710/PUN/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3243 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 07-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJU AJWANI
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRAKUMAR YADAV AND SHRI D. KARUNAKARA RAO ITA NO. 710/PN/10 (ASST. YEAR 2006-07) FUEL INSTRUMENTS & ENGINEERS PVT. LTD. BLOCK NO. 1, OLD INDUSTRIAL ESTATE, ICHALKARANJI PAN NO. AAACF3770F .... APPELLANT VS. ACIT, ICHALKARANJI CIRCLE, ICHALKARANJI . RESPONDENT ASSESSEE BY : SHRI C.H. NANIWADEKAR REVENUE BY : SMT. MANJU AJWANI ORDER PER D. KARUNAKARA RAO AM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R OF THE CIT(A), KOLHAPUR, FOR A.Y 2006-07 AND THE SOLITARY GROUND RAISE D BY THE ASSESSEE IS AS UNDER:- 1) THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) ERRED ON FACTS AND IN LAW IN IMPOSING PENALTY OF RS. 5,838/- U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961. 2. BOTH THE PARTIES HAVE DEMONSTRATED THAT THE ADDITI ON IN QUESTION HAS RESULTED IN VIEW OF THE NON-RECONCILIATION OF THE FIG URES IN THE BOOKS OF THE ASSESSEE VIS--VIS THE ENTRIES IN THE THIRD PARTY BOOK S. FURTHER, WE HAVE PERUSED THE MATERIAL PLACED ON RECORD AND THE IMPUGNED ORDER OF THE CIT(A) AND FIND THAT PARA NO. 4 IS RELEVANT WHICH READS AS UNDER:- 4. THE ONLY ISSUE IN THIS APPEAL IS REGARDING LEVY OF PENALTY U/S.271(1)(C) OF THE ACT. BRIEF FACTS OF THE CASE A RE THAT ASSESSMENT U/S. 143(3) WAS COMPLETED ON 29.12.2008 ON TOTAL INCOME AT RS. 13,03,78,880/-. IT WAS NOTICED BY THE A.O THAT THE APPELLANT RECEIVED CONTRACT RECEIPTS OF RS. 671,94 LACS FROM KEHIN FIE LTD., PUNE TOWARDS LABOUR CHARGES DURING THE YEAR UNDER CONSIDERATION, WHEREAS, THE APPELLANT SHOWED RS. 358.49 LACS AS LABOUR CHARGES RECEIVED FROM THAT CONCERN FOR THE YEAR UNDER CONSIDERATION. ON BEING ASKED TO RECONCILE THE DIFFERENCE, THE APPELLANT MADE SUBMISSION RECONCILI NG THE DIFFERENCE AND THE UNRECONCILED DIFFERENCE WORKS TO RS. 17,344/- F OR WHICH ASSESSEE HAS NO EXPLANATION, WHATSOEVER. THIS AMOUNT OF RS. 17,3 44/- WAS ADDED TO ITA NO. 710/PN/10 A.Y: 2006-07 PAGE 2 OF 2 THE TOTAL INCOME AND SIMULTANEOUSLY PROCEEDINGS U/S . 271(1)(C) WERE INITIATED. 3. FROM THE ABOVE IT IS EVIDENT IN PRINCIPLE, THERE IS NO DISPUTE ON THE EXISTENCE OF RECONCILABLE AMOUNTS. IT IS ALSO EVIDEN T THAT THERE IS NO ANY EXPLANATION BY THE ASSESSEE FOR SUCH DIFFERENCE. IT IS THE CASE OF THE ASSESSEE THAT THE ASSESSEE IF GIVEN ADEQUATE OPPORTUNITY, WO ULD BE IN A POSITION TO RECONCILE THE SAME. CONSIDERING THE SMALLNESS OF THE UNRECONCILED SUM OF RS. 17,344/- AND LIKELY PROBABILITY OF SUCCESSFUL RECONCILIATION, IF GIVEN T HE ADEQUATE OPPORTUNITY, WE ARE OF THE OPINION THAT IT IS NOT A FIT CASE OF LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. THUS, THE GROUNDS RAISE D IN THE APPEAL OF THE ASSESSEE ARE ALLOWED. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH NOVEMBER, 2010. SD/- SD/- (SHAILENDRAKUMAR YADAV) (D.KARUNAKAR A RAO) JUDICIAL MEMBER ACCOUNTANT MEMBE R PUNE DATED THE 04 TH NOVEMBER, 2010 R COPY OF THE ORDER IS FORWARDED TO : 1. ASSESSEE 2. ACIT, ICHALKARANJI CIRCLE, ICHALKARANJI 3. CIT(A), KOLHAPUR 4. CIT-I, KOLHAPUR 5. D.R. ITAT B BENCH BY ORDER ASSISTANT REGISTRAR I.T.A.T PUNE