The ACIT, Circle-6,, Surat v. M/s. Nanavati Motors, Surat

ITA 1176/AHD/2007 | 2001-2002
Pronouncement Date: 26-03-2010 | Result: Dismissed

Appeal Details

RSA Number 117620514 RSA 2007
Bench Ahmedabad
Appeal Number ITA 1176/AHD/2007
Duration Of Justice 3 year(s) 7 day(s)
Appellant The ACIT, Circle-6,, Surat
Respondent M/s. Nanavati Motors, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 26-03-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 26-03-2010
Date Of Final Hearing 17-03-2010
Next Hearing Date 17-03-2010
Assessment Year 2001-2002
Appeal Filed On 19-03-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD BBENCH BEFORE SHRI G.D. AGARWAL VICE-PRESIDENT (AZ) AND SHRI MAHAVIR SINGH JUDICIAL MEMBER ITA NO.1176/AHD/2007 [ASSTT.YEAR 2001-02] ASSTT. COMMISSIONER OF INCOME-TAX VS M/S. NANAVATI MOTORS CIRCLE-6 SURAT ROOM NO.218 NEAR RAJHANS CINEMA AAYAKAR BHAVAN MAJURA GATE PIPLOD SURAT SURAT PAN NO.AACFN1015G (APPELLANT) (RESPONDENT) REVENUE BY :SMT.NEETA SHAH SR-DR ASSESSEE BY: SHRI MANISH J SHAH AR ORDER RESER VED FOR PRONOUNCEMENT ON 17/3/10 O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS ARISING OUT OF THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-IV SURAT IN APPEAL NO.CAS- IV/92/06-07 DATED 03-01- 2007. THE PENALTY WAS LEVIED BY ACIT CIRCLE-6 SUR AT U/S.271(1) OF THE INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO AS T HE ACT) VIDE HIS ORDER DATED 29-03-2006 FOR ASSESSMENT YEAR 2001-02. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S.271(1)(C) OF THE ACT. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE FI LED COPY OF TRIBUNALS ORDER IN ITA NO.3442/AHD/2004 DATED 14-09-2007 IN QUANTUM APPEAL WHEREBY THE ITA NO.1176/AHD./2007 A.Y.2001-02 ACIT CIR-6 SURAT V. M/S. NANAVATI MOTORS PAGE 2 TRIBUNAL HAS SET ASIDE THE ISSUE OF COMMISSION EXPE NSES TO THE FILE OF ASSESSING OFFICER BY GIVING FOLLOWING FINDINGS IN PARA-7 ON WHICH THE PENALTY WAS LEVIED WHICH READS AS UNDER:- 7. WE HAVE HEARD BOTH PARTIES AND PERUSED RECORD. APROPOS GROUND NO.2 DISALLOWANCE OF TELEPHONE EXPENSE WE SEE NO INFIRMITY IN THE ORDER OF CIT(A) DISALLOWING 1/4 TH TELEPHONE EXPENSES. THIS GROUND OF THE ASSESSEE IS DISMISSED. COMING TO COMMISSION EXPENSES WE FIND THAT MANY OF THE VOUCHERS AND CONFORMATIONS FILED BY THE ASSESSEE HAVE NOT BE EN PROPERLY VERIFIED. IN VIEW THEREOF WE SET ASIDE THE ISSUE O F COMMISSION PAYMENT BACK TO THE FILE OF AO TO DECIDE THE SAME AFRESH IN ACCORDANCE WITH THE LAW. 3. AS THE TRIBUNAL HAS SET ASIDE THE QUANTUM ADDIT ION THE PENALTY WILL NOT SURVIVE. HOWEVER ASSESSING OFFICER IS FREE TO INI TIATE THE PENALTY PROCEEDINGS U/S.271(1) OF THE ACT IF HE COMES TO A CONCLUSION THAT THIS IS A FIT CASE FOR INITIATION OF PENALTY PROCEEDINGS DURING THE COURSE SET ASIDE PROCEEDINGS. THIS ISSUE OF THE REVENUES APPEAL IS DISMISSED AS INDIC ATED ABOVE. 3. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS DAY OF 26 TH MARCH 2010 SD/- SD/- ( G.D.AGARWAL ) ( MAHAVIR SINGH ) (VICE PRESIDENT) (JUDICIAL MEMBER) AHMEDABAD DATED : 26/03/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- IV SURAT 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD