The DCIT, Circle-10,, Ahmedabad v. Nima Specific Family Trust, Ahmedabad

ITA 1945/AHD/2008 | 2002-2003
Pronouncement Date: 30-09-2016 | Result: Dismissed

Appeal Details

RSA Number 194520514 RSA 2008
Assessee PAN AAATN0269J
Bench Ahmedabad
Appeal Number ITA 1945/AHD/2008
Duration Of Justice 8 year(s) 4 month(s) 4 day(s)
Appellant The DCIT, Circle-10,, Ahmedabad
Respondent Nima Specific Family Trust, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-09-2016
Date Of Final Hearing 15-09-2016
Next Hearing Date 15-09-2016
Assessment Year 2002-2003
Appeal Filed On 26-05-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI S.S. GODARA JM & SHRI MANISH BORAD AM. ITA NO. 1945/AHD/2008 ASST. YEAR: 2002-03 DCIT CIRCLE-10 AHMEDABAD. VS. NIRMA SPECIFIC FAMILY TRUST NIRMA HOUSE ASHRAM ROAD AHMEDABAD. APPELLANT RESPONDENT PAN AAATN0269J APPELLANT BY SHRI R. I. PATEL CIT DR RESPONDENT BY NONE DATE OF HEARING: 15/9/2016 DATE OF PRONOUNCEMENT: 30/9/2016 O R D E R PER MANISH BORAD ACCOUNTANT MEMBER . THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-XVI AHMEDABAD DATED 19/03/2008 VIDE APPEAL NO.CIT(A)XVI/AC.CIR.10/01/07-08 PASSED AGAINST ORDE R U/S 271(1)(C) OF THE IT ACT 1961 (IN SHORT THE ACT) FRAMED ON 30 TH MARCH 2007 BY DCIT-CIRCLE-10 AHMEDABAD. REVENUE HAS RAISED FOLLO WING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE PENALTY LEVIED OF RS.6 47 56 006/- U/S.271(L)(C) BY THE A.O . 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A.O. ITA NO. 1945/AHD/2008 ASST. YEAR 2002-03 2 3. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD .CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED TO THE AB OVE EXTENT. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT ASSESS MENT U/S 143(3) OF THE ACT WAS COMPLETED ON 24.3.2005. PENALTY PROC EEDINGS U/S 271(1)(C) OF THE ACT WERE INITIATED. IN THE QUANTUM APPEAL LD. CIT(A) UPHELD THE ADDITION MADE BY LD. ASSESSING OFFICER V IDE HIS ORDER DATED 8.3.2006. ASSESSEE CAME IN APPEAL BEFORE THE TRIBUNAL AGAINST THE ORDER OF LD. CIT(A). PENALTY PROCEEDINGS U/S 27 1(1)(C) OF THE ACT WERE TAKEN UP VIDE PENALTY ORDER DATED 30.3.2007 AN D PENALTY OF RS.6 47 56 006/- WAS LEVIED. 3. ASSESSEE WENT IN APPEAL BEFORE LD. CIT(A) AGAINS T THE IMPUGNED PENALTY OF RS.6 47 56 006/- AND LD. CIT(A) DELETED THE PENALTY. 4. NOW REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 5. SOLITARY GRIEVANCE OF THE REVENUE IS AGAINST THE ORDER OF LD. CIT(A) DELETING THE PENALTY LEVIED OF RS.6 47 56 00 6/- U/S 271(1)(C) OF THE ACT. 6. LD. DR SUPPORTED THE ORDER OF ASSESSING OFFICER AND ASSERTED FOR CONFIRMING THE PENALTY. 7. NONE APPEARED ON BEHALF OF THE ASSESSEE IN PERSO N. ON BEHALF OF THE ASSESSEE APPLICATION FOR ADJOURNMENT WAS FIL ED BUT IN THE BODY OF ADJOURNMENT APPLICATION IT WAS MENTIONED THAT TH E QUANTUM APPEAL ITA NO. 1945/AHD/2008 ASST. YEAR 2002-03 3 HAS BEEN DECIDED BY THE CO-ORDINATE BENCH VIDE ITS ORDER IN ITA NO.1251/AHD/2006 DATED 30.4.2010. IT IS ALSO SUBMIT TED THAT ALL THE ISSUES WERE DECIDED IN FAVOUR OF ASSESSEE EXCEPT ON E GROUND WHICH WAS SET ASIDE TO THE ASSESSING OFFICER AND FURTHER THE SET ASIDE ISSUE IS PENDING BEFORE THE CO-ORDINATE BENCH IN 1105/AHD /2014. 8. WE HAVE GONE THROUGH THE ADJOURNMENT APPLICATION AND ON EXAMINING THE FACTS NARRATED IN THE ADJOURNMENT APP LICATION WE DEEM IT FIT TO HEAR THE CASE AND REJECT THE APPLICATION FOR ADJOURNMENT. 9. WE OBSERVE THAT THE ONLY ISSUE BEFORE US RAISED BY THE REVENUE IS THE AGAINST THE ORDER OF LD. CIT(A) DELE TING PENALTY U/S 271(1)(C) OF THE ACT OF RS.6 47 56 006/-. WE FIND T HAT THIS PENALTY HAS BEEN IMPOSED ON THE ADDITIONS CONFIRMED BY LD. CIT( A). FROM GOING THROUGH THE APPLICATION FOR ADJOURNMENT WE FIND TH AT THE APPEAL RELATING TO QUANTUM ADDITION TRAVELLED UPTO THE TRI BUNAL AND DECIDED VIDE ITS ORDER IN ITA NO.1251/AHD/2006 DATED 30.4.2 010. 10. ON PERUSAL OF THE TRIBUNAL ORDER DATED 30.4.201 0 WE FIND THAT SOME OF THE ADDITIONS WERE DELETED AND REMAINING WE RE RESTORED TO THE FILE OF ASSESSING OFFICER. 11. WE FIND THAT LD. CIT(A) CONFIRMED THE FOLLOWING ADDITIONS MADE BY ASSESSING OFFICER WHICH CAME UP BEFORE THE CO-OR DINATE BENCH AHMEDABAD IN ITA NO.1251/AHD/2006 :- ITA NO. 1945/AHD/2008 ASST. YEAR 2002-03 4 1 TREATING SHORT-TERM CAPITAL GAIN AS AGAINST LONG TERM CAPITAL GAIN FOR SALE OF DEEP DISCOUNT BONDS RS.15 32 34 552/- 2 TREATING PROFIT FROM SALE OF INTEREST COUPON STRI PS SERIES -2 RS.2 38 148/- 3 ADDITION TOWARDS ACCRUED INTEREST ON DDBS B SERIES RS.4 99 76 542/- 4 ADDITION TOWARDS INTEREST ON DDBS OF SHREE DEVELOPERS P. LTD. RS.54 00 000/- 5 DENIAL OF DEDUCTION U/S 54EC OF THE ACT CLAIMED AGAINST LONG TERM CAPITAL GAIN RS.16 41 16 800/- 6 PROPOSED ALTERNATE ADDITION U/S 14A OF THE ACT IN CASE ADDITION TOWARDS ACCRUED INTEREST IS DELETED 12. ALL THE ABOVE ISSUES CAME UP BEFORE THE TRIBUNA L IN ITA NO.1251/AHD/2006 AND FIRST THREE ADDITIONS (I) RS.1 5 32 34 552/- (II) RS.2 38 148/- & (III) RS.4 99 76 542/- WERE DELETED AND FOR THE REMAINING ISSUES MATTER HAS BEEN RESTORED TO THE FI LE OF ASSESSING OFFICER WITH REGARD TO THE CLAIM U/S 54EC TO BE ALL OWED AFTER VERIFICATION AND THE REMAINING TWO ADDITIONS FOR EX AMINATION AS PER DIRECTIONS OF THE TRIBUNAL. 13. WE THEREFORE OBSERVE THAT MAJOR ADDITIONS HAV E BEEN DELETED BY THE CO-ORDINATE BENCH AND THE REMAINING WHICH WE RE SET ASIDE TO THE FILE OF ASSESSING OFFICER HAVE AGAIN TRAVELLED TO THE TRIBUNAL AND ARE PENDING FOR ADJUDICATION VIDE ITA NO.1105/AHD/2 014. 14. WE ARE THEREFORE OF THE VIEW THAT IN THE GIVE N FACTS AND CIRCUMSTANCES OF THE CASE WHEREIN THE IMPUGNED ADDI TIONS ON WHICH PENALTY U/S 271(1)(C) OF THE ACT HAS BEEN IMPOSED E ITHER HAVE BEEN DELETED OR SET ASIDE THEN CERTAINLY PENALTY U/S 271 (1)(C) OF THE ACT CANNOT STAND FOR. WE. THEREFORE DELETE THE SAME. H OWEVER REVENUE WILL BE AT LIBERTY TO PASS FRESH PENALTY ORDER U/S 271(1)(C) OF THE ACT ITA NO. 1945/AHD/2008 ASST. YEAR 2002-03 5 AFTER THE OUTCOME OF THE PENDING APPEAL NO.1105/AHD /2014 TO IMPOSE PENALTY ON THE ADDITION IF ANY CONFIRMED B Y THE TRIBUNAL. 15. IN THE RESULT APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER 2016 SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 30/9/2016 MAHATA/- 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 ASST. REGISTRAR ITAT AHMEDABAD 1. DATE OF DICTATION: 20/09/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 29/09/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 30/9/16 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: