ITO, Kota V. M/S PRAKASH ELECTRICALS, Kota

ITA 780/JPR/2011

• Counselvise Citation: 78023114 RSA 2011
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 02-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Section: 143(3)

Judgement Text

1 ITA 780-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER ITA NO. 780/JP/2011 ASSTT. YEAR : 2003-04. THE INCOME-TAX OFFICER, VS. M/S. PRAKASH ELECTRIC ALS, WARD 2(1), KOTA. BORKHEDA, KOTA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : SHRI P.C. PARWAL DATE OF HEARING : 15.02.2012. DATE OF PRONOUNCEMENT : 17.02.2012. ORDER DATE OF ORDER : 17/02/2012. THIS IS AN APPEAL BY REVENUE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2003-04. 2. THE DEPARTMENT IS OBJECTING IN CANCELING THE LEV Y OF PENALTY OF RS. 4,90,613/- RELATING TO ASSESSMENT YEAR 2003-04. 3. THE BRIEF FACTS OF THE CASE ARE THAT AGAINST DEC LARED NET PROFIT RATE OF 4.49%, THE AO APPLIED NP RATE OF 9% AND IN THIS WAY AN ADDITIO NAL INCOME OF RS. 10,59,653/- WAS MADE BY THE AO WHILE COMPLETING ASSESSMENT UNDER SE CTION 143(3) OF THE IT ACT. THEREAFTER PENALTY PROCEEDINGS WERE INITIATED AND A O LEVIED PENALTY OF RS. 4,90,613/- @ 100% TAX ON THE ADDITIONAL INCOME ASSESSEE. ASSESS EE PREFERRED APPEAL BEFORE LD. CIT 2 (A) BEFORE WHOM IT WAS STATED THAT WHATEVER THE ADD ITIONS WERE MADE, THEY WERE DELETED BY THE TRIBUNAL IN ITA NO. 68/JP/2007 DATED 27.6.20 08. ACCORDINGLY IT WAS SUBMITTED THAT ASSESSEES RETURNED INCOME IS THE SAME AS THE FINAL TAXABLE INCOME AFTER GIVING THE EFFECT OF THE ORDER OF THE TRIBUNAL. SINCE THE BAS IS ON WHICH THE PENALTY WAS LEVIED DOES NOT SURVIVE AS THE ENTIRE ADDITIONS WERE DELETED BY THE TRIBUNAL, LD. CIT (A) CANCELLED THE LEVY OF PENALTY. 4. NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5. THE LD. D/R PLACED RELIANCE ON THE ORDER OF THE AO. 6. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSESS EE PLACED RELIANCE ON THE ORDER OF LD. CIT (A). IT WAS FURTHER SUBMITTED THAT THE ORD ER OF TRIBUNAL BY WHICH THE ENTIRE ADDITION MADE AND CONFIRMED BY LOWER AUTHORITIES WE RE DELETED, IS FINAL AS NO APPEAL WAS PREFERRED BY THE DEPARTMENT BEFORE HONBLE RAJASTHA N HIGH COURT, THEREFORE, THE ORDER OF LD. CIT (A) IN CANCELING THE PENALTY IS CORRECT. 7. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) AND SUBMISSIONS OF THE LD. A/R, I FIND NO INFIRMITY IN THE FINDING OF LD. CIT (A) WHO CANCELLED THE LEVY OF PENALTY AS THE BASIS ON WHICH THE PENALTY WAS LEVIED DOES NOT SURVIVE BECAUSE THE ENTIRE ADDITION MADE BY AO WAS DELETED BY THE TRIBUNAL AND THE ORDE R OF TRIBUNAL HAS BECOME FINAL AS STATED BY LD. A/R THAT NO FURTHER APPEAL HAS BEEN P REFERRED BY THE DEPARTMENT AGAINST THE ORDER OF TRIBUNAL. ACCORDINGLY, I CONFIRM THE FIND ING OF LD. CIT (A). 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 17. 02.2012. SD/- ( R.K. GUPTA ) JUDICIAL MEMBER 3 JAIPUR, D/- COPY FORWARDED TO :- THE ITO WARD 2(1), KOTA. M/S. PRAKASH ELECTRICALS, KOTA. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 780/JP/2011) BY ORDER, AR ITAT JAIPUR.