The ACIT,Vapi Circle,, Vapi v. M/s. Sardar Bhiladwala Pardi Peoples Co.Op.Bank Ltd., Valsad

ITA 246/AHD/2013 | 2009-2010
Pronouncement Date: 04-04-2014 | Result: Dismissed

Appeal Details

RSA Number 24620514 RSA 2013
Assessee PAN AABAS4480Q
Bench Ahmedabad
Appeal Number ITA 246/AHD/2013
Duration Of Justice 1 year(s) 2 month(s) 5 day(s)
Appellant The ACIT,Vapi Circle,, Vapi
Respondent M/s. Sardar Bhiladwala Pardi Peoples Co.Op.Bank Ltd., Valsad
Appeal Type Income Tax Appeal
Pronouncement Date 04-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 04-04-2014
Date Of Final Hearing 28-03-2014
Next Hearing Date 28-03-2014
Assessment Year 2009-2010
Appeal Filed On 29-01-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SRI D.K TYAGI JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI ACCOUNTAN T MEMBER ASSTT. COMMISSIONER OF INCOME-TAX VAPI CIRCLE VAPI (APPELLANT) VS M/S. SARDAR BHILADWALA PARDI PEOPLES CO. OP. BANK LTD PARSI STREET KILLA PARDI PAN: AABAS4480Q (RESPONDENT) REVENUE BY: SRI K.C. MATHEWS SR.D.R. ASSESSEE BY: SRI MILIN MEHTA A.R. DATE OF HEARING : 28-03-2014 DATE OF PRONOUNCEMENT : 04-04-20 14 / ORDER PER : D.K. TYAGI JUDICIAL MEMBER:- THIS IS THE REVENUES APPEAL AGAINST THE ORDER OF LD. CIT(A) VALSAD DATED 22-10-2012 DELETING THE PENALTY OF RS. 20 71 113/- LEVIED BY AO U/S. 271(1)(C). ITA NO. 246/AHD/2013 ASSESSMENT YEAR 2009-10 I.T.A NO. 246/AHD/2013 A.Y. 2009-10 PAGE NO ACIT VS. M/S. SARDAR BHILADWALA PARDI PEOPLES CO. O P BANK LTD 2 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS A C O-OPERATIVE BANK ENGAGED IN BANKING ACTIVITIES. DURING THE COURSE OF ASSESS MENT PROCEEDINGS FOLLOWING ADDITIONS WERE MADE (I) ADDITION ON ACCOUNT OF EXCESS CLAIM OF DEDUCTI ON U/S. 36(1)(VII) AMOUNTING TO RS. 66 62 334/- (II) AND DISALLOWANCE OF CLAIM U/S. 80P OF RS. 50 0 00/-. IN RESPECT OF FIRST ADDITION DURING THE ASSESSMENT PROCEEDINGS AO OBSERVED THAT ASSESSEE CLAIMED DEDUCTION U/S. 36(1)(VII) OF THE ACT OF RS. 1 38 00 000/- WHEN ASSESSEE WAS ASKED TO SUBSTANTIA TE THIS CLAIM ASSESSEE HIMSELF ADMITTED THAT DEDUCTION U/S. 36(1)(VII) HA S WRONGLY BEEN CLAIMED AND IT SHOULD BE RESTRICTED TO RS. 71 37 666/- THER EBY EXCESS CLAIM OF RS. 66 62 334/- WAS DISALLOWED AND ADDED TO THE TOTAL I NCOME OF THE ASSESSEE. SIMILARLY IN RESPECT OF DEDUCTION U/S. 80P OF THE A CT AMOUNTING TO RS. 50 000/- DURING THE ASSESSMENT PROCEEDINGS ASSESS EE ADMITTED THAT THIS DEDUCTION HAS ALSO WRONGLY BEEN CLAIMED BY THE ASSE SSEE AND THEREFORE HE OFFERED THE SAME FOR TAXATION. PENALTY U/S. 271(1)( C) OF THE ACT HAS BEEN LEVIED BY AO ON THESE TWO ADDITIONS. 3. IN APPEAL LD. CIT(A) HAS DELETED THIS PENALTY B Y OBSERVING THAT SINCE DURING THE ASSESSMENT PROCEEDINGS AND PENALTY PROCE EDINGS ASSESSEE OFFERED BONAFIDE EXPLANATION AS TO WHY THESE CLAIMS WERE WR ONGLY MADE WHILE FILING RETURN OF INCOME BY PLACING RELIANCE OF THE HONBLE APEX COURT DECISION IN THE CASE OF CIT VS. RELIANCE PETRO-PRODCUTS PVT. LT D. I.T.A NO. 246/AHD/2013 A.Y. 2009-10 PAGE NO ACIT VS. M/S. SARDAR BHILADWALA PARDI PEOPLES CO. O P BANK LTD 3 4. AGGRIEVED BY THIS ORDER OF LD. CIT(A) NOW THE R EVENUE IS IN APPEAL BEFORE US. 5. AT THE TIME OF HEARING LD. DR SUPPORTED THE ORDE R OF AO WHILE LEARNED COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF LD. CIT(A). 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT THERE IS NO DISPUTE ABOUT THE FACT THAT PENALTY HAS BEEN IMPOSED ON THE ADDITIONS MADE BY AO ON ACCOUNT OF EXCESS CLAIM OF DEDUCTION U/S. 36(1)(VII) AND DISALLOWANCE OF CLAIM OF DEDUCTION U/S. 80P OF THE ACT AND LD. CIT(A) HAS DELETED THIS PENALTY BY PLACING RELI ANCE ON THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT VS. RELIANCE PETRO-PRODUCT PVT. LTD WHEREIN THE COURT HELD THAT DISALLOWANCE OF CLAIM O R AN INCORRECT CLAIM DID NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS OF INCOME AND ASSESSEE MUST BE STRICTLY COVERED BY THE PROVISION OF PENALTY TO BE LEVIED. THEREFORE WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER OF LD. CIT(A) AND THE SAME IS HEREBY UPHELD. 7. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 04/04/2014 AK I.T.A NO. 246/AHD/2013 A.Y. 2009-10 PAGE NO ACIT VS. M/S. SARDAR BHILADWALA PARDI PEOPLES CO. O P BANK LTD 4 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER/ /