The ACIT, Circle-1(2), Ahmedabad V. The Gujarat State Co.Op.Bank Ltd., Ahmedabad

ITA 938/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3809 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 28-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R R MAKWANA
• Keywords: Bad and doubtful debts
• Section: 271(1)(c); 143(3)

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.938 /AHD/2019 ASSTT.YEAR : 2011-12 ACIT, CIR.1(2) AHMEDABAD. VS GUJARAT STATE CO-OP BANK LTD. SAHAKAR BHAVAN RELIEF ROAD AHMEDABAD. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI R.R. MAKWANA, SR.DR ASSESSEE BY : SHRI PARIMALSINGH B. PARMAR / DATE OF HEARING : 08/10/2021 /DATE OF PRONOUNCEMENT : 11/10/2021 O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A)-10, AHM EDABAD DATED 11.03.2019 PASSED UNDER SECTION 271(1)(C) OF THE IN COME TAX ACT, 1961 FOR THE ASSTT.YEAR 2011-12, VIDE WHICH THE LD.CIT(A) HA S DELETED PENALTY OF RS.2,68,85,222/- LEVIED BY THE AO UNDER SECTION 271 (1)(C) OF THE ACT. 2. FOR DISPOSAL OF THIS APPEAL OF THE REVENUE, IT I S SUFFICE TO NOTE A BRIEF FACTS FROM THE ORDERS OF THE REVENUE IS THAT ASSESSEE IS A COOPERATIVE BANK. IN THE ASSESSMENT MADE UNDER SEC TION 143(3) OF THE ACT, THE LD.AO HAS MADE ADDITION OF RS.8,70,07,191/ - ON ACCOUNT OF DISALLOWANCE OF BAD DEBTS WRITTEN OFF. THIS DISALL OWANCE WAS CONFIRMED BY THE LD.CIT(A). HOWEVER, IN FURTHER APPEAL BEFOR E THE TRIBUNAL, THE CLAIM OF THE ASSESSEE UNDER SECTION 36(1)(VII) WAS ALLOWED, AND THE ITA NO.938/AHD/2019 - 2 - ADDITION MADE BY THE REVENUE AUTHORITIES WAS DELETE D. IN THE MEANWHILE, LD.AO INITIATED PENALTY PROCEEDINGS UNDE R SECTION 271(1)(C) OF THE ACT AND IMPOSED THE IMPUGNED PENALTY. HOWEV ER, IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY, THE SAME WAS DELETED IN PURSUANCE OF ORDER OF THE TRIBUNAL IN THE QUANTUM APPEAL OF T HE ASSESSEE IN ITA NO.1198/AHD/2015. SOMEHOW, DID NOT SATISFY WITH OR DER OF THE LD.CIT(A) IN CANCELLING THE PENALTY. THEREFORE, REV ENUE HAS FILED THE PRESENT APPEAL. 3. BEFORE US, AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED IN VIEW OF DELETION OF ADDITION BY THE TRIBUNAL, AND C ONSEQUENT CANCELLATION OF PENALTY BY THE LD.CIT(A), THE APPEA L OF THE REVENUE HAS NO MERIT, AND THEREFORE THE SAME DESERVES TO BE DIS MISSED. THE LD.COUNSEL HAS PLACED ON RECORD COPY OF ABOVE ORDER OF THE TRIBUNAL DATED 4.12.2018. ON THE OTHER HAND, THE LD.DR, DID NOT DISPUTE SUBMISSION OF THE LD.COUNSEL FOR THE ASSESSEE. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH ORDER OF THE TRIBUNAL PASSED IN QUANTUM APPEAL OF THE ASSESSEE R EFERRED ABOVE. WE FIND THAT SUB-CLAUSE (III) OF SECTION 271(1)(C) PRO VIDES MECHANISM FOR QUANTIFICATION OF PENALTY. IT CONTEMPLATES THAT TH E ASSESSEE WOULD BE DIRECTED TO PAY A SUM IN ADDITION TO TAXES, IF ANY, PAYABLE BY HIM, WHICH SHALL NOT BE LESS THAN , BUT WHICH SHALL NOT EXCEED THREE TIMES THE AMOUNT OF TAX SOUGHT TO BE EVADED BY REASON OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. IN OTHER WORDS, THE QUANTIFICATION OF THE PENALTY IS DEPENDED UPON THE ADDITION MADE TO THE INCOME OF THE ASSESSEE. IN THE PRESENT CASE, THE A DDITION HAS BEEN ITA NO.938/AHD/2019 - 3 - DELETED BY THE TRIBUNAL VIDE ORDER DATED 4.12.2018( SUPRA), AND BASED ON WHICH THE LD.CIT(A) CANCELLED THE IMPUGNED PENALTY, AND THEREFORE, PENALTY APPEAL OF THE REVENUE IS NOT SUSTAINABLE. ACCORDINGLY, ORDER OF THE LD.CIT(A) IS UPHELD, AND GROUND OF APPEAL OF TH E REVENUE IS REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2021 SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) VICE-PRESIDENT ITA NO.938/AHD/2019 - 4 - AHMEDABAD; DATED, 11/10/2021 / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT 2. $%'# / THE RESPONDENT. 3. && ' / CONCERNED CIT 4. ' ( ) / THE CIT(A) 5. *+, $-- , , / DR, ITAT, AHMEDABAD 6. ,./ 0 / GUARD FILE. / BY ORDER, UE COPY / ! (DY./ASSTT.REGISTRAR) ' #$%, / ITAT, AHMEDABAD 1. DATE OF DICTATION- 8/10/2021 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.-. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT .. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 11/10/2021 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 8. DATE OF DESPATCH OF THE ORDER