M/s. Sayaji Steel , Vadodara V. The Dy. Commissioner of Income Tax,Circle-3(1), Vadodara

ITA 974/AHD/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8998 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘बी’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD (through web-based video conferencing platform) ] ] BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No. 974/Ahd/2019 Assessment Years : 2008-09 M/s. Sayaji Steel, 72, Vasant Compound, Yamuna Mills, Nr. Dabhoi Road, Vadodara-390003 PAN : AAPFS 7174 Q Vs Dy. Commissioner of Income-tax, Circle 3(1), Vadodara अपीलाथ牸 अपीलाथ牸अपीलाथ牸 अपीलाथ牸/ (Appellant) 灹त् 灹त् 灹त् 灹त् यथ牸 यथ牸यथ牸 यथ牸/ (Respondent) Assessee by : Ms. Kinjal Shah, AR Revenue by : Shri Urjit Shah, Sr DR सुनवाई क琉 तारीख/Date of Hearing : 09/11/2021 घोषणा क琉 तारीख /Date of Pronouncement: 10/11/2021 आदेश आदेशआदेश आदेश/O R D E R PER RAJPAL YADAV, VICE PRESIDENT : The assessee is in appeal before the Tribunal against the order of learned Commissioner of Income-tax (Appeals)-3, Vadodara (“CIT(A) in short) dated 2 nd April 2019 passed for Assessment Year 2008-09. 2. The solitary grievance of the assessee is that the learned CIT(A) has erred in confirming the levy of penalty amounting to Rs.9,10,024/-, which was imposed under Section 271(1)(c) of the Income-tax Act, 1961 by the Assessing Officer. 3. The brief facts of the case are that the assessee has filed its return of income on 29.09.2008 declaring total income at Rs.5,87,770/- which was revised on 21.11.2008 declaring total income at Rs.12,96,280/-. The scrutiny assessment was passed on 20.12.2010 determining the total income at Rs.29,45,060/-. The Assessing Officer has made an addition of ITA No. 974/Ahd/2019 M/s Sayaji Steel Vs. DCIT AY : 2008-09 2 Rs.16,48,776/- on account of excess stock out of books, i.e. undisclosed stock. This amount has been considered by the Assessing Officer for visiting the assessee with penalty. 4. It has been brought to our notice by the learned Counsel for the assessee that the dispute regarding the addition on account of this undisclosed stock travelled upto the Tribunal in ITA No.923/Ahd/2016. The Tribunal has made reference to the case of the partner in the assessee’s firm, i.e. ITA No.2177/Ahd/2014. The Tribunal has deleted this addition of Rs.16,48,776/- and confirmed the addition at 2% of the total amount. In other words, the gross addition of the alleged excess stock was not confirmed; rather the profit element on sale of unaccounted stock at 2% has been added. Thus, that amount could hardly be Rs.32,000/- and the tax component on such amount could be Rs.10,000/-. Sub clause (iii) of Section 271(1)(c) of the Act provides the computation of penalty. It could be equivalent or three times of the tax which is calculated on the addition made to the total income of the assessee. In the present case, the addition stands deleted and it has been reduced to the negligible figure. It has also changed the colour of the addition. Considering the above facts, we are of the view that the assessee does not deserve to be visited with the penalty for concealment of income under Section 271(1)(c) of the Act. The appeal of the assessee is thus allowed and the penalty is deleted. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the Court on 10 th November 2021 at Ahmedabad. Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE-PRESIDENT Ahmedabad, Dated 10/11/2021 *Bt ITA No. 974/Ahd/2019 M/s Sayaji Steel Vs. DCIT AY : 2008-09 3 आदेश क琉 灹ितिलिप अ灡ेिषत/Copy of the Order forwarded to : 1. अपीलाथ牸 / The Appellant 2. 灹瀄यथ牸 / The Respondent. 3. संबंिधत आयकर आयु猴 / Concerned CIT 4. आयकर आयु猴)अपील (/ The CIT(A)- 5. िवभागीय 灹ितिनिध ,आयकर अपीलीय अिधकरण,राजोकट/DR,ITAT, Ahmedabad, 6. गाड榁 फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Ahmedabad 1. Date of dictation- ...09.11.2021...... 2. Date on which the typed draft is placed before the Dictating Member ...09.11.2021............ Other member ...10.11.2021.................. 3. Date on which the approved draft comes to the Sr.P.S./P.S. - ......10.11.2021............ 4. Date on which the fair order is placed before the Dictating Member for Pronouncement ...10.11.2021.. 5. Date on which the file goes to the Bench Clerk.......15.11.2021............ 6. Date on which the file goes to the Head Clerk.................................. 7. The date on which the file goes to the Assistant Registrar for signature on the order..................... 8. Date of Despatch of the Order..................