The ITO, Ward-2(1), Surat V. Shri Govind G. Sarawagi, HUF, Surat

ITSSA 15/AHD/2014

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2297 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69C; 143(3); 153A; 2

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ( (( ( ) )) ) ./ IT(SS)A NOS. 15 & 16/AHD/2014 / ASSESSMENT YEAR : 2006-07 & 2007-08 ITO, WARD-2(1), SURAT VS SHRI GOVIND G. SARAWAGI (HUF), V-2131, SURAT TEXTILE MARKET, RING ROAD, SURAT PAN : AAGHS 8859 F / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI PRASOON KABRA, SR DR ASSESSEE BY : WRITTEN SUBMISSION / DATE OF HEARING : 09/09/2016 / DATE OF PRONOUNCEMENT: 09/09/2016 / O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST THE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, AHMEDA BAD, BOTH DATED 30.10.2013 FOR ASSESSMENT YEARS 2006-07 AND 2007-08 . 2. THE ONLY EFFECTIVE GROUND RAISED IN BOTH THESE A PPEALS IS WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE PENALTY OF RS.2 3,27,940/- IN AY 2006-07 AND RS.11,07,425/- IN AY 2007-08, BOTH LEVIED U/S 2 71(1)(C) OF THE INCOME- TAX ACT. 3. BRIEFLY STATED THE FACTS ARE THAT, FOR THE YEARS UNDER CONSIDERATION, ASSESSMENT U/S 143(3) R.W.S 153A OF THE ACT WAS COM PLETED VIDE ORDER DATED 31.12.2010, MAKING ADDITION OF RS.69,00,000 U /S 69C OF THE ACT FOR AY 2006-07; AND ADDITIONS OF RS.4,19,460/- & RS.28,58, 402/- U/S 69C AND 69B RESPECTIVELY FOR AY 2007-08.. ON FURTHER APPEAL, T HE CIT(A) CONFIRMED THESE IT(SS)A NOS. 15 & 16/AHD/2014 ITO VS. SHRI GOVIND G. SARAWAGI HUF. AY : 2006-07 & 2007-08 2 ADDITIONS FOR BOTH THE YEARS UNDER CONSIDERATION VI DE ORDER DATED 17.08.2011 IN APPEAL NOS.CIT(A)-II/CC.4/238/2010-11 AND CIT(A) -II/CC.4/239/2010- 11 RESPECTIVELY. 3.1 SUBSEQUENT TO AFORESAID CIT(A)S ORDERS, PENALT Y U/S 271(1)(C) OF THE ACT WAS COMPLETED, IMPOSING A PENALTY OF RS.23,27,9 40/ AND RS.11,07,425/- FOR AYS 2006-07 AND 2007-08 RESPECTIVELY. ON FURTH ER APPEALS, THE IMPUGNED PENALTY ORDERS WERE CANCELLED BY THE CIT(A ) VIDE ORDER DATED 30.10.2013. THE REVENUE, BEING AGGRIEVED, IS IN AP PEAL BEFORE THE TRIBUNAL. 4. THE LD. COUNSEL FOR THE ASSESSEE VIDE WRITTEN SU BMISSION DATED 02.09.2016 SUBMITTED THAT IN THE QUANTUM APPEALS TH E TRIBUNAL HAS QUASHED THE ASSESSMENT ORDERS PASSED U/S 153A FOR BOTH THE YEARS VIDE ORDER DATED 30.09.2015 IN IT(SS)A NOS.539 & 540/AHD/2011 COP Y OF THE ORDER IS PLACED ON RECORD. SINCE THE ASSESSMENT ORDERS ITSEL F HAVE BEEN QUASHED, THE PENALTY IMPOSED ON THE ADDITION MADE IN SUCH ASSESS MENT ORDERS ALSO DOES NOT SURVIVE. ACCORDINGLY, WE UPHOLD THE ORDERS OF THE CIT(A) CANCELLING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)( C) IN BOTH THE ASSESSMENT YEARS AND ACCORDINGLY REVENUES APPEALS ARE DISMISS ED. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 9 TH SEPTEMBER, 2016 AT AHMEDABAD. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (R.P. TOLANI) JUDICIAL MEMBER AHMEDABAD; DATED 09/09/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT IT(SS)A NOS. 15 & 16/AHD/2014 ITO VS. SHRI GOVIND G. SARAWAGI HUF. AY : 2006-07 & 2007-08 3 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD