DALAS BIOTECH LTD., Alwar V. ACIT, Alwar

ITA 740/JPR/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5606 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 19-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHARMA DHK
• Section: 143(3); 2

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 740/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11. M/S. DALAS BIOTECH LTD., E-292-A, RIICO INDUSTRIAL AREA, BHIWADI, ALWAR. CUKE VS. THE ACIT, CIRCLE-2, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACCS 4061 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE JKTLO DH VKSJ LS@ REVENUE BY : SHRI SHAILENDRA SHARMA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02.02.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 7/02/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS), ALWAR DATED 27.08.2015 PERTAINING TO A.Y. 2010-11. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT (A) HAS ERRED IN SUSTAINING THE PENALTY ORDER U/S 2 71(1)(B) PASSED BY THE ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-2, ALWAR. THE ACTION OF THE LD. CIT (A) IS ILLEGAL, ARBITRARY, UN JUSTIFIED AND AGAINST THE FACTS OF THE CASE. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE LD. A CIT, CIRCLE-2, ALWAR IN IMPOSING THE PENALTY TO THE EXTENT OF R. 2 0,000/- OUT OF R. 40,000/-. 2 ITA NO. 740/JP/2015 M/S. DALAS BIOTECH LTD. 2. BRIEFLY STATED THE FACTS ARE THAT THE CASE OF TH E ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT UNDER SECTIO N 143(3) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VID E ORDER DATED 28.03.2013. WHILE FRAMING THE ASSESSMENT, THE AO MADE VARIOUS ADDITIO NS/DISALLOWANCES THEREBY ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS. 4, 65,94,491/- AGAINST THE DECLARED INCOME OF RS. 3,78,83,890/- AND INITIATED PENALTY P ROCEEDINGS. SUBSEQUENTLY, THE AO VIDE ORDER DATED 30.09.2013 PASSED UNDER SECTION 271(1)(B) READ WITH SECTION 274 OF THE ACT LEVIED PENALTY OF RS. 40,000/-. AGG RIEVED BY THE ORDER, THE ASSESSEE CARRIED THE MATTER BEFORE LD. CIT (A), WHO AFTER CO NSIDERING THE SUBMISSIONS, PARTLY DELETED THE PENALTY. 3. NOW THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE THOUGH THE NOTICE OF HEARING WAS DULY SERVED ON THE COUNSEL OF THE ASSESSEE. 4.1. THE LD. D/R SUPPORTED THE ORDERS OF THE AUTHOR ITIES BELOW. 4.2. WE HAVE HEARD LD. D/R AND CONSIDERED THE MATER IAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. I T TRANSPIRED FROM THE RECORD THAT THE ASSESSEE HAS PARTICIPATED IN THE PROCEEDINGS AN D THE ASSESSMENT WAS NOT PASSED EX PARTE. THE LD. COUNSEL FOR THE ASSESSEE PLACED RELIANCE ON THE VARIOUS JUDICIAL PRONOUNCEMENTS OF THE HONBLE HIGH COURT A ND COORDINATE BENCH OF THE TRIBUNAL IN SUPPORT OF ITS CASE THAT PENALTY IS NOT LEVIABLE. IN THE WRITTEN SUBMISSION PLACED ON RECORD, THE LD. COUNSEL PLACED RELIANCE O N THE ORDER OF LD. CIT (A), ALWAR DATED 18.08.2015 FOR THE A.Y. 2010-11 IN THE CASE O F M/S. UJALA PUMPS PVT. LTD. EXACTLY ON SIMILAR ISSUE, WHEREIN THE LD. CIT (A) D ELETED THE PENALTY. THE LD. D/R HAS NOT BROUGHT ON RECORD ANY CONTRARY MATERIAL SUPPORT ING THE ORDERS OF THE AUTHORITIES 3 ITA NO. 740/JP/2015 M/S. DALAS BIOTECH LTD. BELOW. UNDER THESE FACTS, CONSIDERING THE JUDGMENT RELIED ON BY THE ASSESSEE IN THE CASE OF AKHIL BHARTIYA PRATHMIK SHIKSHAK SANGH BJHA WAN TRUST VS. ASSISTANT DIRECTOR OF INCOME TAX, 115 TTJ 419 (DEL.) AND THE ORDERS OF THE COORDINATE BENCH IN THE CASE OF M/S. ZUNZUBHAI P. PATEL, SURAT VS. AO IN IT A NO. 3194/AHD/2009 DATED 13.05.2011 AND ALSO ORDER OF LD. CIT (A) DATED 18.0 8.2015 ON SIMILAR ISSUE, WE SET ASIDE THE ORDER OF LD. CIT (A) AND DIRECT THE AO TO DELETE THE PENALTY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER IS PRONOUNCED IN THE OPEN COURT ON 07.02.2 017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 07/02/2017. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. DALAS BIOTECH LTD., BHIWADI . 2. THE RESPONDENT THE ACIT CIRCLE-2, ALWAR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 740/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 740/JP/2015 M/S. DALAS BIOTECH LTD.