Adrot Tradelink Pvt. Ltd.( Formerly Known as Jain Orna Pvt. Ltd.), Ahmedabad V. The ACIT, Circle-1, Ahmedabad

ITSSA 457/AHD/2013

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2518 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 05-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-10-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 13-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ IT(SS)A.NO.457/AHD/2013 / ASSTT. YEAR: 2001-2002 ADROT TRADELINK PVT. LTD. (FORMERLY KNOWN AS JAIN ORNA PVT. LTD.) A-3, IMAGE FLATS NR. LAVANYA SOCIETY VASNA, AHMEDABAD 380 007. PAN : AAACJ 3868 J VS ACIT, CIR.1 AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI P.M. MEHTA WITH SHRI G.M. THAKORE, AR REVENUE BY : SHRI JAMES KURIAN, SR.DR / DATE OF HEARING : 04/10/2016 / DATE OF PRONOUNCEMENT: 05/10/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER ASSESSEE IS IN APPEAL AGAINST THE ORDER OF THE LD.C IT(A)-XXI, AHMEDABAD DATED 16.9.2013 FOR THE ASSTT.YEAR 2001-0 2. 2. SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE L D.CIT(A) HAS ERRED IN CONFIRMING PENALTY OF RS.2,30,577/- IMPOSED UNDER S ECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 BY THE AO. 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE VERY OUTS ET CONTENDED THAT PENALTY HAS BEEN IMPOSED UPON THE ASSESSEE WITH REGARD TO T HE ADDITION OF IT(SS)A NO.457/AHD/2013 2 RS.5,83,000/-. THE TRIBUNAL HAS SET ASIDE THIS ISS UE TO THE FILE OF CIT(A) FOR RE-ADJUDICATION IN IT(SS)A.NO.330/AHD/2010. HE PLA CED ON RECORD COPY OF THE TRIBUNALS ORDER DATED 11.1.2013. THE LD.DR WA S UNABLE TO CONTROVERT TO THIS FACT. 4. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE RECORD CAREFULLY. SUB-CLAUSE (III) OF SECTION 271(1)(C) PROVIDES MECH ANISM FOR QUANTIFICATION OF PENALTY. IT CONTEMPLATES THAT TH E ASSESSEE WOULD BE DIRECTED TO PAY A SUM IN ADDITION TO TAXES, IF ANY, PAYABLE HIM, WHICH SHALL NOT BE LESS THAN , BUT WHICH SHALL NOT EXCEED THREE TIMES THE AMOUNT OF TAX SOUGHT TO BE EVADED BY REASON OF CONCEALMENT OF INCOME AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. IN OTHER WORDS, THE QUANTIFICATION OF THE PENALTY IS DEPENDED UPON THE ADDITIONS MADE TO THE INCOME OF THE ASSESSEE. UPTO AND UNTIL, THE ISSUE REGARDING DETERMINATION OF THE TAXABLE INCOME IS FINALIZED, P ENALTY UNDER SECTION 271(1)(C) OF THE ACT CANNOT BE IMPOSED UPON THE ASS ESSEE. THE DETERMINATION OF TAXABLE INCOME OF THE ASSESSEE IS SUBJUDICED BEFORE THE LD.CIT(A). THE LD.CIT(A) SHALL DECIDE THE PENALTY APPEAL AFTER ADJUDICATION OF THE QUANTUM APPEAL. THEREFORE, WE S ET ASIDE THE IMPUGNED ORDER AND ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 5 TH OCTOBER, 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 05/10/2016