M/s. Sri Sakthi Crushers, Kangeyam V. DCIT, Coimbatore

ITSSA 2/CHNY/2006

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 8830 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 07-10-2010
• Assessment Year: misc
• Appeal Filed On: 05-01-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Block assessment
• Section: 144

Judgement Text

IN THE INCOMETAX APPELLATE TRIBUNAL: D- BENCH:CHENN AI (BEFORE SHRI HARI OM MARATHA, JUDICI AL MEMBER AND SHRI ABRAHAM P. GEORGE. ACCOUNTANT MEMBER) IT(SS)A NO. NO.2/MDS/2006 BLOCK PERIOD 1-4-1990 TO 12-10-2000 M/S SAKTHI CRUSHERS, VS. THE DCIT, S.F. 397,CHENNIMALAI RD., CENTRAL CIR.II KANGEYAM, PERIYAR DIST. 638701 COIMBATORE PAN AAGCS2918C (APPELLANT) (RESPONDENT) APPELLANT BY: RESPONDENT BY: SHRI A. ARJUNARAJ SRI K.E.B.RENGARAJAN, JR.STANDING COUNSEL. ORDER PER SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER- IN THIS APPEAL ASSESSEE ASSAILS LEVY OF PENALTY OF R S.2,70,000/- UNDER SEC.221 OF THE INCOME-TAX ACT, 1961 (THE ACT FOR SHORT), WHICH WAS CONFIRMED BY THE CIT(A). IT(SS)A NO.2/MDS/06 2 2. LEVY OF PENALTY EMANATED OUT OF A DEMAND RAISED ON THE ASSESSEE PURSUANT TO AN ASSESSMENT COMPLETED UNDER SEC. 158 BC R.W. SECTION 144 OF THE ACT ON 23-10-2002 FOR BLOCK PERIOD 1-4-1990 TO 12-10-2000. ASSESSEE HAD NOT PAID THE DEMAND IN TIME AND AO LEV IED PENALTY UNDER SEC. 221 OF THE ACT ON 28-11-2003. 3. WHEN THE APPEAL CAME UP FOR HEARING, IT WAS BRO UGHT TO THE NOTICE OF THE BENCH BY THE LD. AR THAT THE ASSESSEE WAS SUC CESSFUL IN ITS APPEAL FILED BEFORE THIS TRIBUNAL, AGAINST THE ADDITIONS M ADE IN THE BLOCK ASSESSMENT. A COPY OF THE ORDER OF THIS TRIBUNAL IT( SS)A NO.217/MDS/06 DATED 06-08-2010 WAS ALSO FILED. LD. COUNSEL FOR TH E REVENUE FAIRLY AGREED THAT DEMAND WOULD NO LONGER BE THERE SINCE, ASSESSEES APPEAL WAS ALLOWED ON MERITS OR SET ASIDE FOR FRESH CONSID ERATION TO THE AO. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENT IONS. WE HAVE ALSO GONE THROUGH THE ORDER OF THIS TRIBUNAL IT(SS)A NO.217/MDS/06. IT WAS HELD BY THIS TRIBUNAL THAT THE ASSESSEE WAS ELI GIBLE FOR SET OFF OF LOSSES AGAINST THE PROFITS WITHIN THE BLOCK PERIOD FOR VARIOUS ASSESSMENT YEARS INCLUDED THEREIN. THIS TRIBUNAL HAD ALSO DELE TED THE ADDITION OF INCOME MADE FOR THE FRAGMENTED PERIOD FALLING IN TH E BLOCK. THE NET RESULT OF THIS IS THAT THE DEMAND RAISED ON THE ASS ESSEE IS NO MORE THERE. IT(SS)A NO.2/MDS/06 3 THE SUBSTRATUM FOR LEVY OF PENALTY UNDER SEC. 221 OF THE ACT HAS THUS DISAPPEARED. SUCH LEVY IS THEREFORE, QUASHED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 -10 -2010 SD/- SD/- ( HARI OM MARATHA) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI: 13TH OCTOBER, 2010 NBR CC: ASSESSEE/ ASSESSING OFFICER/ CIT(A)/ CIT/ D .R/ GUARD FILE.