Shri Parag P.Jhaveri, Ahmedabad V. The Dy.CIT.,Cent.Circle-1(3), Ahmedabad

ITSSA 331/AHD/2012

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 1047 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 23-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 23-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 06-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIBHA BHALLA
• Assessee Lawyers: S N SOPARKAR

Judgement Text

IT(SS) A NO. 331 /AHD/201 2 AS SESSMENT Y EAR S : 2006 - 07 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH , AHMEDABAD [CORAM: PRAMOD KUMAR AM AND KUL BHARAT JM ] IT(SS)A NO . 331 / AHD/201 2 A SS ESS MENT YEAR: 200 6 - 07 PARAG P. JHAVERI ....... .. .. . ..... APPELLANT A/3, EMBASSY APARTMENT, DR. V.S. ROAD, AMBAVADI, AHMEDABAD. [PAN: A A K PJ 5052 F ] VS. DEPUTY COMMISSIONER OF INCOME TAX .... ........ .... .. .. .. .... .. RESPONDENT CENTRAL CIRCLE 1(3), AHMEDABAD. APPEARANCES BY: S.N. SOPARKAR, FOR THE A PPELLANT VIBHA BHALLA, FOR THE RE SPONDENT DATE OF CO NCLUDING THE HEARING : OCTOBER 23 RD , 201 5 DATE OF PRONOUNCING THE ORDER : OCTOBER 23 RD , 2015 O R D E R PER BENCH : 1. THIS APPEAL IS DIRECTED AGAINST LEARNED CIT ( A ) S ORDER DATED 23 RD MAY, 201 2 UPHOLDING PENALTY OF RS. 20 ,00,000/ - IMPOSED UNDER SECTION 271(1)(C) OF THE INCOME T A X ACT , 1961 ( T HE ACT FOR SHORT), FOR THE ASSESSMENT YEAR 200 6 - 07. 2. VIDE OUR ORDER OF EVEN DATE, THE RELATED QUANTUM ASSESSMENT HAS BEEN RESTORED TO THE FILE OF THE LD. CIT(A). WHILE DOING SO, WE HAVE OBSERVED AS FOLLOWS : - 6. WE HAVE NOTED THAT IN THE IMPUGNED ORDER, LEARNED CIT(A) HAS MERELY FOLLOWED DECISION OF A CO - ORDINATE BENCH IN THE CASE OF SUGAMCHAND C. SHAH VS. ACIT (SUPRA), WHICH, AS LEARNED REPRESENTATIVES FAIRLY AGREE, IS NO LONGER GOOD LAW. THERE IS NO ADJUDI CATION ON THE CORE ISSUE IN THE APPEALS I.E. WHETHER OR NOT THE ACTIVITY PURSED BY IT(SS) A NO. 331 /AHD/201 2 AS SESSMENT Y EAR S : 2006 - 07 PAGE 2 OF 2 THE ASSESSEE, ON THE FACTS OF THIS CASE, CONSTITUTES AN ADVENTURE IN THE NATURE OF TRADE. AS A MATTER OF FACT, THERE IS NO FINDING OR ADJUDICATION ON THE NATURE OF ACTIVITI ES PURSUED BY THE ASSESSEE EITHER. LD. CIT(A) HAS BEEN SOMEWHAT SUPERFLUOUS IN HIS APPROACH. WHEN THIS WAS PUT TO THE LEARNED REPRESENTATIVES, BOTH THE PARTIES AGREED FOR THE MATTER BEING REMITTED TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION IN A CCORDANCE WITH THE LAW, BY WAY OF A SPEAKING ORDER AND AFTER GIVING YET ANOTHER OPPORTUNITY OF HEARING TO THE ASSESSEE. WE, THEREFORE, REMIT THE MATTER TO THE FILE OF THE LD. CIT(A) IN THE ABOVE TERMS. 3. IN VIEW OF THE ABOVE DEVELOPMENT, IN ALL FAIRNES S, THE PENALTY MATTER MUST ALSO STAND RESTORED TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION AFTER DECIDING THE QUANTUM ASSESSMENT MATTER. WE DIRECT SO. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. IT WAS SO PRONOUNCED IN THE OPEN COURT IMMEDIATELY UPON CONCLUSION OF HEARING TODAY ON 23 RD DAY OF OCTOBER, 2015. SD/ - SD/ - KUL BHARAT PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD , 23 RD DAY OF OCTOBER , 2015 P BN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD