DEPUTY COMMISSIONER OF INCOME TAX, Jaipur V. VEDANSH JEWELS P. LTD., Jaipur

ITA 811/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1836 (ITAT-JAIPUR)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Assessee Lawyers: MANISH AGARWAL CA DHK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM VK;DJ VIHY LA-@ ITA NO. 811/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12. DEPUTY COMMISSIONER OF INCOME - TAX, CIRLCE-6, JAIPUR. CUKE VS. M/S VEDANSH JEWELS PVT. LTD., A-20, BHAGAT SINGH MARG, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACCV 1538 R IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. POONAM RAI (DCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07.12.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 08/12/2017. VKNS'K@ ORDER PER SHRI BHAGCHAND ,AM. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF LD. CIT (A)- 2, JAIPUR, DATED 14.08.2017 PERTAINING TO THE ASSES SMENT YEAR 2011-12. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 15,40,950/- IMPOSED BY AO IGNORING THE FACT THAT THE ORDER OF T HE ITAT ON THE QUANTUM ISSUE HAS BEEN CHALLENGED BY THE DEPARTMENT BEFORE THE HONBLE HIGH COURT. (II) THE APPELLANT CRAVES ITS RIGHTS TO ADD, AMEND OR ALTER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2. THE ONLY ISSUE IS INVOLVED IN THIS APPEAL IS AGA INST DELETING THE PENALTY OF RS. 15,40,950/- U/S 271(1)(C) OF THE ACT. AT THE OUTSE T OF HEARING, THE LD. AR HAS SUBMITTED THAT HONBLE ITAT WHILE DECIDING THE QUAN TUM OF APPEAL OF THE ASSESSEE HAS DELETED THE ADDITION AND THE LD. CIT(A) HAS GRA NTED RELIEF BY RELYING UPON THE 2 ITA NO. 811/JP/2017. M/S VEDANSH JEWELS PVT. LTD. , JAIPUR. DECISION OF THE HONBLE ITAT, JAIPUR BENCH IN ASSES SEES QUANTUM APPEAL. THEREFORE, THERE IS NO MERIT IN THE APPEAL OF THE R EVENUE. 2.1 ON THE OTHER HAND, LD. D/R HAS SUBMITTED THAT, THE DEPARTMENT HAS PREFERRED THE APPEAL AGAINST THE QUANTUM ORDER OF THE ITAT BE FORE THE HONBLE RAJASTHAN HIGH COURT. 2.2 I HAVE HEARD BOTH THE SIDES. THE LD. CIT(A) HA S DELETED THE PENALTY BY HOLDING AS UNDER:- 2.1 THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE FILED A COPY OF THE ORDER OF THE HON'BLE ITAT, JAIPUR BENCH IN THE ASSESSEE'S OW N CASE FOR ASSESSMENT YEAR 2010-11. VIDE THIS APPEAL ORDER DATED 28.04.20 17 (ITA NO.343/JP/2015), THE HON'BLE ITAT DECISION IS AS UN DER : 5.13 'IN LIGHT OF ABOVE DISCUSSION AND IN THE ENTIR ETY OF THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIE W THAT THERE IS NO EVIDENCE DEMONSTRATING THE EXISTENCE OF ANY ARRANGE MENT BETWEEN THE ASSESSEE COMPANY AND M/S DWARKA JEWELS AIMED AT PRO DUCING MORE THAN NORMAL PROFIT IN THE HANDS OF THE ASSESSEE COM PANY. HENCE, THE ACTION OF THE AUTHORITIES IN INVOKING PROVISIONS OF SECTION 10AA(9) READ WITH SECTION 80121(10) CANNOT BE SUSTAINED. IN THE RESULT, THE CONSEQUENT ADDITIONS MADE BY THE ASSESSING OFFICER AND PARTLY UPHELD BY THE LD. CIT(A) IS HEREBY DELETED. IN THE RESULTS , GROUNDS TAKEN BY THE ASSESSEE ARE ALLOWED AND GROUND OF THE REVENUE IS DISMISSED' ITA NO. 560/JP/15 & 521/JP/15 ADMITTEDLY, THE GROUNDS OF APPEAL TAKEN BY THE ASSE SSEE AND THE REVENUE ARE SIMILAR TO GROUNDS OF APPEAL UNDER IDEN TICAL FACTS AND CIRCUMSTANCES OF THE CASE AS TAKEN IN ITA NO. 343/J P/15 AND 559/JP/15. OUR FINDINGS AND DIRECTIONS CONTAINED IN ITA NO. 343/JP/15 AND 559/JP/15 SHALL THEREFORE APPLY MUTATIS MUTANDI S TO THESE TWO 3 ITA NO. 811/JP/2017. M/S VEDANSH JEWELS PVT. LTD. , JAIPUR. APPEALS. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED AND THE APPEAL OF THE REVENUE IS DISMISSED.' FOLLOWING THE ABOVE JUDGMENT OF HON'BLE ITAT, JAIPU R, SINCE THE QUANTUM ADDITIONS HAVE BEEN DELETED, THE PENALTY IMPOSED TH EREON CANNOT BE SUSTAINED. THE APPEAL OF THE ASSESSEE IS ALLOWED. SINCE, THE RELIEF HAS BEEN GRANTED BY THE LD. CIT(A ) ON THE BASIS OF THE DELETION OF QUANTUM OF ADDITION BY HONBLE ITAT, THEREFORE, THE BENCH FIND NO MERIT IN THE APPEAL OF THE REVENUE SAME IS HEREBY DISMISSED. 3. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO. 811/JP/2017 IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 08/12/2017 . SD/- ( HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 08/12/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- DEPUTY COMMISSIONER OF INCOME TA X, CIRCLE-6, JAIPUR. 2. THE RESPONDENT M/S VEDANSH JEWELS PVT. LTD., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.811/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 811/JP/2017. M/S VEDANSH JEWELS PVT. LTD. , JAIPUR.