The DCIT, Circle-5,, Ahmedabad v. Shri Karsanbhai Khodidas Patel, Ahmedabad

ITA 1439/AHD/2010 | 2004-2005
Pronouncement Date: 06-08-2010 | Result: Dismissed

Appeal Details

RSA Number 143920514 RSA 2010
Assessee PAN AGGPP2909K
Bench Ahmedabad
Appeal Number ITA 1439/AHD/2010
Duration Of Justice 3 month(s) 2 day(s)
Appellant The DCIT, Circle-5,, Ahmedabad
Respondent Shri Karsanbhai Khodidas Patel, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 06-08-2010
Date Of Final Hearing 06-08-2010
Next Hearing Date 06-08-2010
Assessment Year 2004-2005
Appeal Filed On 04-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND D.C. AGRAWAL AM) ITA NO.1439/AHD/2010 A. Y.: 2004-05 THE D. C. I. T. CIRCLE-5 2 ND FLOOR C. U. SHAHCHAMBERS ASHRAM ROAD AHMEDABAD 380 009 VS SHRI KARSANBHAI KHODIDAS PATEL NIRMA HOUSE ASHRAM ROAD AHMEDABAD PA NO. AGGPP 2909K (APPELLANT) (RESPONDENT) APPELLANT BY SHRI R. K. DHANESTA DR RESPONDENT BY SHRI HEMANSHU SHAH AR O R D E R PER BHAVNESH SAINI JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-XI AHMEDABAD DATED 05-02-2010 FOR THE ABOVE ASSESSMENT YEAR 2004-05 C HALLENGING THE CANCELLATION OF PENALTY LEVIED U/S 271 (1) ( C ) OF THE IT ACT. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES PERUSED THE FINDINGS OF THE AUTHORITIES BELOW AND T HE MATERIALS AVAILABLE ON RECORD. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT WHILE FI NALIZING THE ASSESSMENT THE AO MADE ADDITION OF RS.87 47 522/- ON ACCOUNT OF ACCRUED INTEREST ON DDBS. PENALTY PROCEEDINGS WERE ACCORDINGLY INITIATED AND VIDE SEPARATE ORDER PENALTY WAS IMPOSED ON THE AFORESAID AMOUNT. IT WAS SUBMITTED BEFORE THE LEARNED CIT(A) THAT PENALT Y WAS LEVIED ON ACCOUNT OF ADDITION MADE ON ACCOUNT OF NOTIONAL INT EREST OF REC BONDS OF RS.87 47 522/- . THE MATTER WAS IN APPEAL BEFORE TH E TRIBUNAL IN ITA ITA NOS. 1439/AHD/2010 DCIT CIR-5 AHMEDABAD VS SHRI KARSANBHAI KHODIDAS PATEL 2 NO.4426/AHD/2007 AND THE TRIBUNAL DIRECT4ED THE AO TO RE-DECIDE THE ISSUE IN THE LIGHT OF THE DECISION IN THE GROUP CAS E OF THE ASSESSEE. COPY OF THE ORDER DATED 03-07-2009 WAS FILED. THE LEARNE D CIT(A) CONSIDERING THE ABOVE NOTED THAT THE PENALTY CANNOT STAND BECA USE OF THE ORDER OF THE TRIBUNAL SETTING ASIDE THE MATTER TO THE FILE O F THE AO. THEREFORE PENALTY WAS CANCELLED AND APPEAL OF THE ASSESSEE HA S BEEN ALLOWED. 4. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE AO IN PURSUANCE OF THE ABOVE DIRECTION OF THE T RIBUNAL DATED 03-07-2009 TOOK UP THE MATTER AGAIN IN THE SET ASID E PROCEEDINGS AND ADDITION HAS BEEN DELETED. COPY OF THE ORDER DATED 29-09-2009 U/S 143 (3) READ WITH SECTION 254 OF THE IT ACT HAS BEEN FI LED. THE LEARNED DR DID NOT DISPUTE THE ABOVE POSITION. 5. CONSIDERING THE ABOVE FACTS AND THE FACT THAT TH E AO HIMSELF HAS DELETED THE ADDITION ON THE MATTER IN ISSUE ON WHIC H PENALTY WAS IMPOSED; THEREFORE FOUNDATION OF IMPOSITION OF PEN ALTY ITSELF HAS GONE. THEREFORE PENALTY CANNOT BE IMPOSED AGAINST THE AS SESSEE U/S 271 (1) (C) OF THE IT ACT ON THAT MATTER. WE ACCORDINGLY D O NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. THE SAME IS ACCORDINGLY DISMISSED. 6. AS A RESULT THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 06-08-2010 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 06-08-2010 LAKSHMIKANT/- ITA NOS. 1439/AHD/2010 DCIT CIR-5 AHMEDABAD VS SHRI KARSANBHAI KHODIDAS PATEL 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD