Shri Simit Sheth L/R of Late Shri Pankaj J.Sheth, Baroda v. The Income tax Officer,Ward-2(2),, Baroda

ITA 2445/AHD/2013 | 2006-2007
Pronouncement Date: 30-09-2016 | Result: Allowed

Appeal Details

RSA Number 244520514 RSA 2013
Assessee PAN ADBPS9145C
Bench Ahmedabad
Appeal Number ITA 2445/AHD/2013
Duration Of Justice 2 year(s) 11 month(s) 16 day(s)
Appellant Shri Simit Sheth L/R of Late Shri Pankaj J.Sheth, Baroda
Respondent The Income tax Officer,Ward-2(2),, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 30-09-2016
Assessment Year 2006-2007
Appeal Filed On 14-10-2013
Judgment Text
I.T.A. NO . 2 44 5 /AHD/201 3 A SSESSMENT Y EAR: 200 6 - 0 7 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH SMC AHMEDABAD [CORAM: PRAMOD KUMAR AM] I.T.A. NO. 244 5 /AHD/ 20 1 3 ASSESSMENT Y EAR : 200 6 - 07 SIMIT SHETH ................... . APPELLANT L/R. O F LATE SHRI PANKAJ J . SHETH C/ O. MANISH G. SHETH 38/101 GAUTAMNAGAR SOC RACE COURSE CIRCLE VADODARA. [ PAN: A DBPS 9145 C ] VS. INCOME TAX OFFICER WARD 2(2) BARODA. . ...... . ... . RESPONDENT APPEARANCES BY: URVASHI SHODHAN FOR THE APPELLANT O.P. MEENA FOR THE RES PONDENT D ATE OF CONCLUDING THE HEARING : 19 .0 7 .2016 DATE OF PRONOUNCING THE ORDER : 3 0 . 0 9 .2016 O R D E R 1. BY WAY OF THIS APPEAL THE A SSESS EE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 2 ND JULY 2013 PASSED BY THE L EARNED CIT(A) UPHOLDING THE PENALTY OF RS. 1 51 721 / - IMPOSED ON THE ASSESSEE UNDER SECTION 271(1)( C ) OF THE INCOME TAX ACT 1961 FOR THE ASSESSMENT YEAR 200 6 - 07 . 2. GRIEVANCE OF THE ASSESSEE IN SUBSTANCE IS THAT THE LEARNED CIT(A) ERRED IN UPHOLDING THE IMPUGNED PENALTY OF RS. 1 51 721 / - . I.T.A. NO . 2 44 5 /AHD/201 3 A SSESSMENT Y EAR: 200 6 - 0 7 PAGE 2 OF 3 3. IN THE PRESENT CASE ORIGINALLY AN AMOUNT OF RS. 41 04 903 / - WA S DISALLOW ED AS BOGUS PURCHASES AND ON THAT BASIS PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS MADE. WHEN FINALLY MATTER TRAVELLED IN APPEAL BEFORE THE TRIBUNAL WHILE T HIS DISALLOWANCE WAS DELETED THE ASSESSEE WAS HELD TO BE IN THE BUSINESS OF ISSUING ACCOMMODATION AND AN INCOME ESTIMATED @ 12.5 % OF THE VALUE OF BILLS ISSUED WAS BROUGHT TO TAX. AS FOR PENALTY WHEN MATTER WAS CARRIED IN APPEAL BE FORE THE LEARNED CIT ( A ) THE LEARNED CIT (A) UPHELD T HE PENALTY IN PRINCIPLE BUT RESTRICTED THE QUANTUM OF PENALTY ON THE BASIS OF INCOME COMPUTED @ 12.5% OF SALE BILL. THE ASSESSEE IS AGGRIEVED AND IS IN FURTHER APPEAL BEFORE ME. 4. I HAVE HE A RD THE RIV AL CONTENTIONS PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 5. I FIND THAT THE VERY BASIS OF IMPUGNED PENALTY IN THE LIGHT OF COURSE ADOPTED BY THE TRIBUNAL BY ESTIMATING INCOME @ 12.5% OF SALE BILL STANDS VACATED. THE NATURE OF COMPUTATION OF INCOME NOW HAS NOTHING IN PARITY WITH THE DISALLOWANCE ORIGINALLY MADE. IN ANY CASE EVEN THE INCOME IS COMPUTED PURELY ON ESTIMATE BASIS. IN THIS VIEW OF THE MATTER IN MY CONSIDERED VIEW THE PENALTY MUST STAND DELETED. I ORDER SO. 6 . IN T HE RESULT THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF SEPTEMBER 2016. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 30 TH DAY OF SEPTEMBER 2016. PBN/* I.T.A. NO . 2 44 5 /AHD/201 3 A SSESSMENT Y EAR: 200 6 - 0 7 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDA BAD BENCHES AHMEDABAD