Pee Aar Organics & Chemicals Pvt. Ltd., Kanpur V. Income Tax Officer-6(2), Kanpur

ITA 752/LKW/2014

• Counselvise Citation: 75223714 RSA 2014
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1998-1999
• Appeal Filed On: 26-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: Y P SRIVASTA VA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.752/LKW/2014 ASSESSMENT YEAR:1998 - 99 INCOME TAX OFFICER - 6(2), KANPUR. VS M/S PEE AAR ORGANICS & CHEMICALS PVT. LTD., 108/117, GANDHI NAGAR, KANPUR. PAN:AAACP7796D (RESPONDENT) (APPELLANT) SHRI ABHINAV MEHROTRA, ADVOCATE APPELLANT BY SHRI Y. P. SRIVASTAVA, D. R. RESPONDENT BY 13/11/2014 DATE OF HEARING 752 /12/2014 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - I, KANPUR DATED 24/06/2014 FOR THE ASSESSMENT YEAR 1998 - 99. 2. THE ASSESSEE HAS RAISED AS MANY AS 9 GROUNDS OF APPEAL BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING CONFIRMING THE PENALTY OF RS.76,702/ - IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE BEFORE US THAT PENALTY ON ESTIMATED ADDITION IS NOT JUSTIFIED WHEREAS LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IT WAS THE SUBMISSIONS OF THE ASSESSEE BEFORE THE ASSESSING OFFICER DURING THE PENALTY PROCEEDINGS T HAT ALTHOUGH INITIALLY , ADDITIONS WERE MADE OF RS.14,07,500/ - ON ACCOUNT OF ALLEGED UNDISCLOSED SALES AND RS.8,67,800/ - ON ACCOUNT OF ALLEGED 2 UNDISCLOSED PURCHASES BY TRADE TAX DEPARTMENT BUT THE SAME WAS ULTIMATELY RESTRICTED TO RS.2.50 LAC AND RS.1.80 LA C RESPECTIVELY BY THE TRIBUNAL OF TRADE TAX DEPARTMENT. ON THE SAME BASIS, IN INCOME TAX PROCEEDINGS ALSO, THE ASSESSING OFFICER MADE ADDITION OF RS.14,07,500/ - AND RS.8,67,800/ - ON ACCOUNT OF ALLEGED UNDISCLOSED SALES AND ALLEGED UNDISCLOSED PURCHASE RES PECTIVELY BUT CIT(A) IN QUANTUM PROCEEDINGS RESTRICTED THE ADDITION TO RS.1.80 LAC BEING ALLEGED UNDISCLOSED PURCHASES ULTIMATELY CONFIRMED BY THE TRIBUNAL OF TRADE TAX DEPARTMENT AND GROSS PROFIT ADDITION OF RS.39,150/ - IN RESPECT OF ALLEGED UNDISCLOSED S ALES OF RS.2.50 LAC ULTIMATELY CONFIRMED BY THE TRIBUNAL OF TRADE TAX DEPARTMENT. IT WAS THE SUBMISSION OF THE ASSESSEE BEFORE THE ASSESSING OFFICER THAT THE ULTIMATE ADDITION CONFIRMED BY TRADE TAX DEPARTMENT IS ON ESTIMATED BASIS ALONE AND THEREFORE, NO CONCEALMENT OF INCOME WAS ESTABLISHED BY THE ASSESSING OFFICER AND THEREFORE, PENALTY U/S 271(1)(C) IS NOT JUSTIFIED. WE FIND FORCE IN THIS SUBMISSION OF LEARNED A.R. OF THE ASSESSEE BEFORE THE AUTHORITIES BELOW AND BEFORE US THAT ULTIMATELY THE ADDITION UPHELD FINALLY IS ON THE BASIS OF ESTIMATION ONLY AND THEREFORE, CONCEALMENT IS NOT ESTABLISHED AND HENCE, PENALTY U/S 271(1)(C) OF THE ACT IS NOT JUSTIFIED. THEREFORE, WE DELETE THE PENALTY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 /12/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR