M/s. Raghuvir Synthetics Ltd., Ahmedabad V. The ACIT(OSD),Circle-5, Ahmedabad

ITA 910/AHD/2011

• Counselvise Citation: 91020514 RSA 2011
• Duration Of Justice: 4 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 16-09-2015
• Assessment Year: 1994-1995
• Appeal Filed On: 28-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: VIJAY RANJAN
• Keywords: Initiation of penalty proceedings

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 910/AHD/2011 / ASSESSMENT YEAR: 1994-95 RAHUVIR SYNTHETICS LTD., KASHIRAM MILL COMPOUND NR. GUJARAT BOTLING PVT. LTD., RAKHIAL, AHMEDABAD. PAN: AAACR 9683 H VS. ASSISTANT COMMISSIONER OF INCOME TAX (OSD) RANGE-5, AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI VIJAY RANJAN, A.R REVENUE BY : SHRI DINESH SINGH, SR D.R / DATE OF HEARING : 16/09/2015 / DATE OF PRONOUNCEMENT: 29/09/2015 / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-XI, AH MEDABAD DATED 21.02.2011 FOR ASSESSMENT YEAR 1994-95. 2. GROUND NO.1 OF THE CONCISE GROUNDS OF APPEAL REA DS AS UNDER:- 1. IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE AP PELLANTS CASE, THE LEARNED CIT(A) HAS GROSSLY ERRED IN UPHOLDING TH E ACTION OF THE LEARNED ASSESSING OFFICER OF TREATING THE ENTIR E EXPENDITURE OF RS.65,47,445 AS PUBLIC ISSUE EXPENSES AND ALLOWING DEDUCTION OF 1/10 TH THEREOF U/S 35D. ITA NO. 910 AHD 2011 - RAGHUVIR SYNTHETICS LTD AY 1994-95 2 3. AT THE TIME OF HEARING BEFORE US, THE LEARNED CO UNSEL FOR THE ASSESSEE DID NOT PRESS THIS GROUND OF APPEAL; ACCOR DINGLY, THE SAME IS REJECTED. 4. GROUND NO.2 OF THE ASSESSEES APPEAL IS AGAINST CHARGING OF INTEREST U/S 234D. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. WE FIND THAT SECTION 234D WAS INSERTED BY FINANCE ACT, 2003 WITH EFFECT FROM 01.06.2003. THE ASSESSMENT O RDER UNDER CONSIDERATION IS 1994-95. THUS, SECTION 234D WAS N OT IN EXISTENCE AT THE RELEVANT TIME. WE, THEREFORE, HOLD THAT THE CH ARGING OF INTEREST U/S 234D FOR ASSESSMENT YEAR 1994-95 IS NOT PERMISSIBLE ; ACCORDINGLY, THE SAME IS QUASHED. 6. GROUND NO.3 OF THE ASSESSEES APPEAL IS AGAINST THE INITIATION OF PENALTY PROCEEDINGS U/S 271(1)(C). THIS GROUND IS PRE-MATURE; ACCORDINGLY, REJECTED AS SUCH. 7. IN THE RESULT, THE ASSESSEES APPEAL IS PARTLY A LLOWED. ORDER PRONOUNCED IN THE COURT ON 29 TH SEPTEMBER, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 29/09/2015 BIJU T., PS ITA NO. 910 AHD 2011 - RAGHUVIR SYNTHETICS LTD AY 1994-95 3 !'#$#%! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. '# $ / CONCERNED CIT 4. $ ( ) / THE CIT(A) 5. '() # , # , ' / DR, ITAT, AHMEDABAD 6. ). / / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD