Godavari Khore Sahakari Dudh Utpadak Sangh Ltd,, Ahmednagar v. Assistant Commissioner of Income-tax, Ahmednagar Circle ,, Ahmednagar

ITA 2335/PUN/2017 | 2013-14
Pronouncement Date: 03-03-2021 | Result: Allowed

Appeal Details

RSA Number 233524514 RSA 2017
Bench Pune
Appeal Number ITA 2335/PUN/2017
Appellant Godavari Khore Sahakari Dudh Utpadak Sangh Ltd,, Ahmednagar
Respondent Assistant Commissioner of Income-tax, Ahmednagar Circle ,, Ahmednagar
Appeal Type Income Tax Appeal
Pronouncement Date 03-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 03-03-2021
Date Of Final Hearing 02-03-2021
Next Hearing Date 02-03-2021
Last Hearing Date 02-03-2021
First Hearing Date 04-12-2020
Assessment Year 2013-14
Appeal Filed On 05-10-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO AM AND SHRI S. S. VISWANETHRA RAVI JM . / ITA NO.2335/PUN/2017 / ASSESSMENT YEAR : 2013-14 GODAVARI KHORE SAHAKARI DUDH UTPADAK SANGH LTD. A/P SAHAJANANDNAGAR TAL. KOPARGAON DIST. AHMEDNAGAR. PAN : AAAAG0652R ....... / APPELLANT / V/S. ACIT AHMEDNAGAR CIRCLE AHMEDNAGAR. / RESPONDENT ASSESSEE BY : SHRI PRASANNA JOSHI REVENUE BY : SHRI VITTHAL BHOSALE / DATE OF HEARING : 02.03.2021 / DATE OF PRONOUNCEMENT : 03.03.2021 / ORDER PER INTURI RAMA RAO AM: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)- 2 PUNE (CIT(A) FOR SHORT) DATED 12.07.2017 CONFIRMING THE LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT 1961 (THE ACT FOR SHORT) FOR THE ASSESSMENT YEAR 2013-14. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE APPELLANT IS COOPERATIVE SOCIETY ENGAGED IN THE BUSINESS OF MILK PROCESSING. THE APPELLANT SOCIETY FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 THROUGH ELECTRONICALLY MODE ON 22.09.2013 DISCLOSING RS.NIL INCOME AFTER SETTING OFF OF THE BROUGHT 2 ITA NO.2335/PUN/2017 FORWARD LOSSES. AGAINST THE SAID RETURN OF INCOME THE ASSESSMENT WAS COMPLETED BY THE ASSISTANT COMMISSIONER OF INCOME TAX AHMEDNAGAR CIRCLE AHMEDNAGAR (THE ASSESSING OFFICER FOR SHORT) U/S 143(3) OF THE ACT VIDE ORDER DATED 01.03.2016 AT A TOTAL INCOME OF RS.NIL AFTER SETTING OFF OF BROUGHT FORWARD LOSSES OF RS.5 31 49 786/-. WHILE DOING SO THE ASSESSING OFFICER MADE DISALLOWANCE OF DEPRECIATION OF RS.10 55 526/- DISALLOWANCE OF BELATED PAYMENT OF EMPLOYEES CONTRIBUTION TO PPF OF RS.33 43 522/- ADDITIONS ON ACCOUNT OF PROFIT FROM BUSINESS OF SALE OF FERTILIZERS AND SEEDS AND INTEREST RECEIVED FROM MSEB ETC. SIMULTANEOUSLY THE ASSESSING OFFICER ISSUED A SHOW-CAUSE NOTICE FOR LEVY OF PENALTY U/S 271(1)(C) OF THE ACT FOR CONCEALMENT OR INACCURATE OF PARTICULARS OF INCOME. IN RESPONSE TO THE SAID SHOW-CAUSE NOTICE IT IS THE ADDITIONS MADE BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS ARE BASED ON THE INFORMATION FILED BY THE ASSESSEE AND THERE IS NO DELIBERATE ATTEMPT TO FILE ANY INACCURATE PARTICULARS OF INCOME. IT IS ONLY ON ACCOUNT OF MISTAKES OCCURRED BY INADVERTENCE AND THEREFORE LEVY OF PENALTY IS NOT JUSTIFIED. HOWEVER REJECTING THE EXPLANATION OF THE ASSESSEE THE ASSESSING OFFICER PROCEEDED WITH THE LEVY OF PENALTY FOR FURNISHING OF INACCURATE PARTICULARS AND LEVIED PENALTY OF RS.4 43 000/- VIDE ORDER DATED 12.09.2016. 3. EVEN AN APPEAL BEFORE THE LD. CIT(A) THE LD. CIT(A) CONFIRMED THE LEVY OF PENALTY. 4. BEING AGGRIEVED THE APPELLANT IS BEFORE US IN THE PRESENT APPEAL. 5. BEFORE US IT IS CONTENDED THAT NO PENALTY CAN BE LEVIED IN RESPECT OF ADDITIONS MADE ON ESTIMATE BASIS AND THE ADDITIONS ARE MADE ON MISTAKES OCCURRED ON ACCOUNT OF INADVERTENCE. HE FURTHER SUBMITTED THAT THERE IS NO 3 ITA NO.2335/PUN/2017 CHANGE IN THE ASSESSED INCOME EVEN AFTER THE ABOVE ADDITIONS MADE BY THE ASSESSING OFFICER. THUS IT WAS PRAYED THAT THE PENALTY LEVIED BE DELETED. 6. ON THE OTHER HAND LD. SR. DR PLACED RELIANCE ON THE ORDERS OF THE LOWER AUTHORITIES. 7. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN THE PRESENT APPEAL RELATES TO WHETHER OR NOT THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT IS JUSTIFIED? ON MERE READING OF THE ASSESSMENT ORDER IT WOULD SUGGEST THAT THE ADDITIONS IN RESPECT OF WHICH PENALTY U/S 271(1)(C) OF THE ACT WAS LEVIED IS BASED ON THE INFORMATION FILED BY THE APPELLANT SOCIETY. THERE IS NO FINDING IN THE IMPUGNED PENALTY ORDER BY THE ASSESSING OFFICER AS TO WHICH PART OF THE INFORMATION FILED BY THE APPELLANT SOCIETY IS FOUND TO BE INACCURATE OR FALSE. IN THE ABSENCE OF THIS FINDING THE LEVY OF PENALTY CANNOT BE SUSTAINED. RELIANCE IN THIS REGARD CAN BE PLACED ON THE FOLLOWING DECISIONS OF THE HONBLE HIGH COURTS :- (I) CIT VS. AERO TRADERS PVT. LTD. 322 ITR 316 (DEL); (II) CIT VS. PARKASH INDUSTRIES LTD. 322 ITR 622 (P&H); (III) CIT VS. VIJAY KUMAR JAIN 325 ITR 378 (CHHATTISGARH); AND (IV) CIT VS. S S P LTD 328 ITR 643 (P&H). 8. IN THE LIGHT OF THE ABOVE LEGAL POSITION WE ARE OF THE CONSIDERED VIEW THAT THE IMPUGNED ORDER OF PENALTY CANNOT BE SUSTAINED IN THE EYES OF LAW. ACCORDINGLY THE ORDERS OF THE LOWER AUTHORITIES ARE SET-ASIDE AND WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY OF RS.4 43 000/- LEVIED U/S 271(1)(C) OF THE ACT. 4 ITA NO.2335/PUN/2017 9. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED ON THIS 03 RD DAY OF MARCH 2021. SD/- SD/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 03 RD MARCH 2021. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2 PUNE. 4. THE PR. CIT-2 PUNE. 5 . / DR ITAT A BENCH PUNE. 6. / GUARD FILE. / BY ORDER // TRUE COPY // SENIOR PRIVATE SECRETARY / ITAT PUNE.