The ITO, Ward -3, Mehsana V. Shri Ganpatrao Bhavkana Patil, Mehsana

ITA 99/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8865 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-03-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 05-01-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: S N DIVATIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND N. S. SAINI, AM) ITA NO.99/AHD/2007 A. Y.: 2000-01 THE INCOME TAX OFFICER, WARD-3, MEHSANA, APOLLO ENCLAVE, 2 ND FLOOR, OPP. JAIN TEMPLE, HIGHWAY, MEHSANA 384 002 VS GANPATRAO B. PATIL HUF, C/O. BRISK SURGICAL COTTON INDUSTRIES, 62, GIDC, KALOL PA NO. AABHP 5214 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI C. K. MISHRA, DR RESPONDENT BY SHRI S. N. DIVATIA, AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XXI, AHMEDABAD DATED 17-10-2006 FOR ASSESSMENT YEAR 2000-01, CHALLENGING THE CANCELLATI ON OF PENALTY U/S 271 (1) (C) OF THE INCOME TAX ACT. 2. THE AO FOUND THAT RS.7,00,000/- WAS INTRODUCED B Y THE ASSESSEE IN HIS CAPITAL ACCOUNT WITH THE FIRM M/S. BRISK COT TON SURGICAL INDUSTRIES. ADDITION OF RS.7,00,000/- WAS ACCORDING LY MADE TREATING THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE. THE LEA RNED CIT(A) CONFIRMED THE ADDITION. THE AO VIDE SEPARATE ORDER IMPOSED PENALTY U/S 271(1) ( C ) OF THE IT ACT. THE LEARNED CIT(A) NOTE D THAT THE AO HAS NOT PROVIDED ANY MATERIAL ON RECORD TO PROVE THAT THE A SSESSEE HAD COMMITTED ANY DEFAULT FOR WHICH PENALTY HAS TO BE I MPOSED. PENALTY WAS ACCORDINGLY CANCELLED. 3. THE LEARNED COUNSEL OF THE ASSESSEE AT THE OUTSE T SUBMITTED THAT ITAT AHMEDABAD BENCH IN THE CASE OF THE ASSESSEE IN ITA ITA NO.99/AHD/2007 GANPATRAO B. PATIL, HUF 2 NO.12/AHD/2005 FOR ASSESSMENT YEAR 2000-01 DELETED THE ADDITION OF RS.7,00,000/- ON MERIT VIDE ORDER DATED 11-09-2008. COPY OF THE ORDER IS FILED ON RECORD. THE LEARNED DR DID NOT DISPUTE THI S FACT. 4. CONSIDERING THE ABOVE, WE ARE OF THE VIEW THAT S INCE THE BASIS OF IMPOSITION OF THE PENALTY ITSELF HAS GONE BECAUSE O F ULTIMATE DELETION OF THE ADDITION ON MERIT BY THE TRIBUNAL, NOTHING IS L EFT FOR THE REVENUE TO CHALLENGE THE PENALTY U/S 271 (1) ( C ) OF THE IT A CT. THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL. THE SAME IS ACCORDINGLY DI SMISSED. 5. AS A RESULT, THE DEPARTMENTAL APPEAL IS DISMISSE D. ORDER PRONOUNCED ON 05-03-2010 SD/- SD/- (N. S. SAINI) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 05-03-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD