The DCIT, Circle-4, Ahmedabad V. Inductotherm (India) Ltd., Ahmedabad

ITA 784/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8638 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 04-03-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 19-02-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: M K PATEL
• Keywords: Bad and doubtful debts
• Section: 80HHC; 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER DATE OF HEARING:04/03/2010 DRAFTED ON: 04/03/2 010 ITA NO.784/AHD/2007 ASSESSMENT YEAR : 2001-2002 THE DCIT, CIR.-4, AHMEDABAD NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, AHMEDABAD. VS. INDUCTOTHERM (INDIA) LTD. AMBLI BOPAL ROAD, BOPAL, AHMEDABAD. PAN/GIR NO. : AAACI 3672 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI C.K.MISHRA SR. D.R. RESPONDENT BY: SHRI M.K.PATEL. A.R. O R D E R PER N.S.SAINI , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-VI, AHMEDABAD, DATED 20.11.2006. 2. THE GROUNDS OF THE APPEAL READS AS UNDER:- THE CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE I N CANCELING THE PENALTY OF RS.20,41,332/- LEVIED UNDER SECTION 271( 1)(C) OF THE INCOME TAX ACT, AFTER HOLDING THAT PENALTY U/S. 271 (1)(C) OF THE ACT IS NOT LEVIABLE ON THE DISALLOWANCE MADE BY THE ASSESSING OFFICER IN RESPECT OF (I) PROVISION OF WARRANTY EXP ENSES OF RS.47,57,264/- (II) DEDUCTION U/S. 80HHC OF RS.4,03 ,320/- AND (III) EXPENSES U/S. 14A OF THE ACT AT RS.808/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE LEARNED ASSESSING OFFICER HAS LEVIED PENALTY OF RS.20,41,332/- UNDER SECTION 271( 1)(C) OF THE ACT ON ACCOUNT OF CONCEALMENT AND FURNISHING OF INACCURATE PARTICU LARS OF INCOME BY THE ITA NO .784 /AHD/2007 - 2 - ASSESSEE ON ACCOUNT OF ADDITION MADE FOR PROVISION OF WARRANTY RS.56,30,747/- , DEDUCTION UNDER SECTION 80HHC RS.9,49,280/-, UNDE R SECTION 14A RS.3,544/- AND BAD DEBTS RS.5,45,954/-. 4. ON APPEAL BY THE ASSESSEE, THE LEARNED COMMISSIO NER OF INCOME TAX(APPEALS) SUSTAINED ADDITION FOR PROVISION OF WA RRANTY RS.47,57,264/-, DEDUCTION UNDER SECTION 80HHC RS.4,03,320/- AND RE STRICTED THE DISALLOWANCE UNDER SECTION 14A TO RS.808/- AND DELETED THE DISAL LOWANCE OF BAD DEBT OF RS.5,45,954/-. ON FURTHER APPEAL BY THE ASSESSEE, THE TRIBUNAL DELETED THE ADDITION ON ACCOUNT OF WARRANTY PROVISION OF RS.47, 57,264/-, AND ADDITION UNDER SECTION 80HHC OF RS.4,03,320/-. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. BOTH THE PARTIES ADMITTED BEFORE US THAT THE VARIOUS ADDITIONS IN RE SPECT OF WHICH PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS IMPOSED WAS DELETED ON APPEAL EXCEPT DISALLOWANCE OF RS.808/- UNDER SECTION 14A OF THE A CT. ON THE ABOVE FACT, THE PENALTY ORDER PASSED BY THE LEARNED ASSESSING OFFIC ER CANNOT BE SUSTAINED AS ADDITION OF THE DISALLOWANCE STANDS DELETED. THEREF ORE, THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) DELETIN G THE LEVY OF PENALTY DOES NOT REQUIRE ANY INTERFERENCE. 6. THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER, SIGNED DATED AND PRONOUNCED IN THE COURT 12/03/2010. SD/- SD/- (BHAVNESH SAINI) ( N.S. SAINI ) JUDICIAL MEMBER ACCO UNTANT MEMBER AHMEDABAD; DATED 12/03/2009 PREPARED AND COMPARED BY PARAS# ITA NO .784 /AHD/2007 - 3 - COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS) 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD