The ACIT,Vapi Circle, Vapi V. Royal Impex, SILVASSA

ITA 94/AHD/2011

• Counselvise Citation: 9420514 RSA 2011
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-12-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 13-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AWIJIT RAKSHIT
• Assessee Lawyers: M K PATEL
• Section: 80IB

Judgement Text

-1- IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'A' BEFORE SHRI MUKUL KR. SHRAWAR JM & SHRI B P JAIN ACCOUNTANT MEMBER ITA NO.94/AHD/2011 (ASSESSMENT YEAR:-2005-06) THE ASST. COMMISSIONER OF INCOME-TAX, VAPI CIRCLE, VAPI V/S M/S ROYALE IMPEX, SURVEY NO.327/4, VILLAGE: ATHAL, SILVASSA (U.T. OF D.N.H.) PAN: AAEFR 9752 Q [APPELLANT] [RESPONDENT] APPELLANT BY :- SHRI AWIJIT RAKSHIT, SR. DR RESPONDENT BY:- SHRI M K PATEL, AR DATE OF HEARING:- 30-12-2011 DATE OF PRONOUNCEMENT:- 30-12-2011 O R D E R PER B P JAIN (AM) :- THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF THE LEARNED CIT(A), VALSAD DATED 19-10-2010 FOR THE ASSESSMENT YEAR 2005-06. THE REVENUE HAS AGITATED DELETION OF PENAL TY U/S 271(1)(C) BY THE LEARNED CIT(A). 2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE FACTS OF THE CASE. THE LEARNED COUNSEL FOR THE ASSESSEE, MR. M K PATEL INVITED OUR ATTENTION TO THE ORDER OF THE ITAT AHMEDABAD BENCH- C IN ASSESSEES OWN CASE IN QUANTUM APPEAL IN ITA NO.3706/AHD/2008, DAT ED 16-12-2010 WHERE IN THE QUANTUM APPEAL, THE MATTER HAS BEEN SE T ASIDE TO THE FILE OF THE AO TO DECIDE THE ISSUE ACCORDINGLY. THEREFORE, THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED THAT THE PENALTY CANNOT SURVIVE ONCE THE QUANTUM HAS BEEN SET ASIDE TO THE FILE OF THE AO. 3 THE LEARNED DR, ON THE OTHER HAND, CONCEDED WITH THE ARGUMENTS MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE. 4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE FACTS OF THE CASE. THE MATTER IN THE QUANTUM APPEAL IN ASSESSEE S OWN CASE HAS BEEN 2 SET ASIDE BY THE ITAT AHMEDABAD BENCH-C IN ITA NO.3 706/AHD/2008, DATED 16-12-2010 VIDE PARA 3 OF ITS ORDER WHICH FOR THE SAKE OF CLARITY IS REPRODUCED AS UNDER:- 3. WE, THEREFORE, FOLLOWING THE DECISION OF THE TR IBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 2003-04 & 2004-05 (SU PRA) HOLD THAT THE ACTIVITY CARRIED OUT BY THE ASSESSEE IS MANUFACTURING AND AS SUCH THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80IB OF THE ACT. HOWEVER, T HE WORKING OF CALCULATION NEEDS VERIFICATION AT THE END OF ASSESSING OFFICER, THEREFORE, THE MATTER IS RESTORED TO THE FILE OF ASSESSING OFFICER WITH THE DIRECTION THAT HE WILL VERIFY THE WORKING OF CALCULATION AND WILL ALLOW THE DEDUCTION UNDER S ECTION 80IB OF THE ACT TO THE ASSESSEE IN ACCORDANCE WITH LAW. 5 THEREFORE, IN THE FACTS AND CIRCUMSTANCES AND HAV ING THE QUANTUM BEING SET ASIDE TO THE FILE OF THE AO, THE PENALTY LEVIED BY THE AO CANNOT SURVIVE. THEREFORE, WE CONFIRM THE ORDER OF THE LEA RNED CIT(A) WHO HAS RIGHTLY CANCELLED THE PENALTY LEVIED BY THE AO, MAY BE ON DIFFERENT GROUNDS. THUS, THE GROUNDS OF THE REVENUE ARE DISMI SSED. 6 IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT TODAY ON 30-12-2011 SD/- SD/- (MUKUL KR.SHRAWAT) JUDICIAL MEMBER (B P JAIN) ACCOUNTNAT MEMBER DATE : 30-12-2011 COPY OF THE ORDER FORWARDED TO: 1. M/S ROYALE IMPEX, SURVEY NO.327/4, VILLAGE: ATHA L, SILVASSA (U.T. OF D.N.H.) 2. THE ASST. COMMISSIONER OF INCOME-TAX, VAPI CIRCL E, VAPI 3. CIT CONCERNED 4. CIT(A), VALSAD 5. DR, ITAT, AHMEDABAD BENCH-, AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR