M/s Heera Moti Agro Industries, Solan V. DCIT, Chandigarh

ITA 998/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8237 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 21-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 16-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 271(1)(c); 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 40(a)(ia); 80IC; 80IC

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 998/CHD/2016 ASSESSMENT YEAR: 2009-10 M/S HEERA MOTI AGRO INDUSTRIES, VS. THE DCIT, CC-1 , DISTT. SOLAN CHANDIGARH PAN NO. AADFH7463B (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SUDHIR SEHGAL RESPONDENT BY : SH. MANJIT SINGH DATE OF HEARING : 07.03.2017 DATE OF PRONOUNCEMENT : 15.03.2017 ORDER PER BHAVNESH SAINI, JM THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAI NST THE ORDER OF LD. CIT(A)-3, GURGAON DATED 30.06.2016 FOR ASSESSMENT Y EAR 2009-10 CHALLENGING THE LEVY OF PENALTY U/S 271(1)(C) OF TH E ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT PENALTY HAS BEEN IMPOSED BY THE ASSESSING OFFICER ON ACCOUNT OF FOLLOWING ADDITIONS MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A) AS DISCUSSE D IN THE PENALTY ORDER:- I) DISALLOWANCE OF RS. 7,61,557/- AGAINST THE CLAIM MADE U/S 80IC OF THE ACT. 2 II) ADDITION OF RS. 5,82,821/- MADE U/S 40(A)(IA) OF THE ACT ON ACCOUNT OF NON DEDUCTION OF TDS. III) ADDITION OF RS. 87,512/- SINCE THE ASSESSEE FAILED TO RECONCILE THE SALES WITH THE BOOKS OF ACCOUNT BY APPLYING THE GP RATE SHOWN BY THE ASSESSEE ON TOTAL RECEIPTS OF RS. 3,72,871/- IV) ADDITION OF RS. 36,38,594/- SINCE THE ASSESSEE FAILED TO PROVIDE INFORMATION WITH REGARD TO CONFIRMATION / LEDGER ACCOUNTS / WITH RESPECT TO TH E SUNDRY CREDITORS 3. THE LD. CIT(A) CONFIRMED THE LEVY OF PENALTY ON ALL THE ADDITIONS EXCEPT THE ADDITION OF RS. 5,82,821/- U/S 40(A) (IA ) OF THE I.T. ACT AND ALLOWED THE APPEAL OF THE ASSESSEE PARTLY. 4. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT ASSESSEE CHALLENGED THE ABOVE ADDITION ON MERIT BEFORE ITAT, CHANDIGARH BENCH IN ITA NO. 741/CHD/2013 FOR ASSESSMENT YEAR 2009-10 AN D THE APPEAL OF THE ASSESSEE HAS BEEN DECIDED BY THE TRIBUNAL VIDE ORDE R DATED 23.2.2017, COPY OF THE ORDER IS PLACED ON RECORD AND PROVIDED TO TH E LD. DR. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE DID NOT CHALLENGE THE ADDITION OF RS. 87,512/- BEFORE THE T RIBUNAL. SIMILARLY, HE DID NOT PRESS THIS GROUND OF APPEAL BEFORE THE TRI BUNAL FOR THE PURPOSE OF LEVY OF PENALTY. THE LEVY OF PENALTY IS THEREFORE, CONFIRMED ON THE ADDITION OF RS. 87,512/- BECAUSE THIS GROUND OF APPEAL OF TH E ASSESSEE HAS NOT BEEN PRESSED BY LD. COUNSEL FOR THE ASSESSEE. 3 6. AS REGARDS THE ADDITION OF RS. 7,61,557/- U/S 80 IC OF THE ACT, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ADDITI ON HAS BEEN DELETED BY THE TRIBUNAL VIDE ORDER DATED 23.2.2017. THE ADDITI ON OF RS. 5,82,821/- U/S 40(A)(IA) OF THE I.T. ACT, THE TRIBUNAL SET ASIDE T HE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE ADDITION TO THE FILE OF THE A SSESSING OFFICER. AS REGARDS ADDITION OF RS. 36,38,594/-, THE TRIBUNAL A GAIN SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORED THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR PASSING THE ORDERS AFRESH. THE LD. COUN SEL FOR THE ASSESSEE THEREFORE, SUBMITTED THAT NO BASIS IS LEFT FOR LEVY THE PENALTY ON THESE ADDITIONS. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT NO PENALTY CAN BE LEVIED ON THE REMAINING THREE ADDITI ONS OF RS. 7,61,557/- RS. 5,82,821/- AND ADDITION OF RS. 36,38,594/-. HO WEVER, LD. CIT(A) ALREADY DELETED THE PENALTY ON THE ADDITION OF RS. 5,82,821/-. SINCE ONE ADDITION IS DELETED ON QUANTUM AND OTHER ADDITION I S RESTORED TO THE FILE OF THE ASSESSING OFFICER, THEREFORE, NO BASIS IS LEFT FOR LEVY OF PENALTY AGAINST THE ASSESSEE. THE ORDERS OF THE AUTHORITIES BELOW ARE ACCORDINGLY SET ASIDE AND PENALTY IS CANCELLED ON THESE ADDITIONS. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 15 TH MARCH, 2017 RKK 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR