The DCIT, Circle-12,, Ahmedabad v. M/s. Amba Sai Packaging, Ahmedabad

ITA 3173/AHD/2009 | 2006-2007
Pronouncement Date: 04-11-2011 | Result: Dismissed

Appeal Details

RSA Number 317320514 RSA 2009
Assessee PAN AALFM9934A
Bench Ahmedabad
Appeal Number ITA 3173/AHD/2009
Duration Of Justice 1 year(s) 11 month(s) 8 day(s)
Appellant The DCIT, Circle-12,, Ahmedabad
Respondent M/s. Amba Sai Packaging, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 04-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 04-11-2011
Date Of Final Hearing 31-10-2011
Next Hearing Date 31-10-2011
Assessment Year 2006-2007
Appeal Filed On 26-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH .. !'# !'# !'# !'# $ .%.&'( %) * % # % # % # % # BEFORE S/SHRI G.C. GUPTA VICE-PRESIDENT AND A.K. GARODIA ACCOUNTANT MEMBER) ITA NO.3173/AHD/2009 [ASSTT.YEAR : 2006-07] DCIT CIR.12 AHMEDABAD. /VS. M/S.AMBA SAI PACKAGING 61/A GHANSHYAM ESTATE MARGHA FARM STADIUM ROAD RAKHIAL AHMEDABAD. PAN : AALFM 9934 A ( (( ( - - - - / APPELLANT) ( (( (./ - ./ - ./ - ./ - / RESPONDENT) * 0 1 %/ REVENUE BY : SHRI RAKESH AGRAWAL 34 0 1 %/ ASSESSEE BY : SHRI S.N. DIVETIA 5 0 46)/ DATE OF HEARING : 31 ST OCTOBER 2011 7&8 0 46)/ DATE OF PRONOUNCEMENT : 4 TH NOVEMBER 2011 %9 / O R D E R PER G.C. GUPTA VICE-PRESIDENT: THIS APPEAL OF THE REVENUE FOR THE A.Y.2006-2007 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XX AHMEDABAD DATED 28.08.2009. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS REGARDING THE VALIDITY OF PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT 1961. 2. THE LEARNED DR SUBMITTED THAT THE ADDITION OF RS .20 LAKHS WAS MADE TO THE TRADING RESULT OF THE ASSESSEE WHICH WAS SUSTAI NED IN THE QUANTUM CASES OF THE ASSESSEE AND THE ESTIMATE WAS MADE BY INVOKING PROVISIONS OF SECTION 145(3) OF THE ACT. THE LEARNED DR SUBMITTED THAT T HE ASSESSEE DID NOT FILE ANY REPLY TO THE SHOW CAUSE NOTICE SERVED ON IT. HE HA S SUBMITTED THAT THE ASSESSEES BOOKS OF ACCOUNTS HAVE BEEN HELD AS UN-R ELIABLE AND HAS BEEN REJECTED AND THE PENALTY IMPOSED WAS JUSTIFIED. HE RELIED UPON THE ORDER OF THE AO. ITA NO.3173/AHD/2009 -2- 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ADDITION WAS MADE TO THE TRADING RESULT OF THE ASSESSEE BY WAY O F ESTIMATE FOR WHICH NO PENALTY UNDER SECTION 271(1)(C) OF THE ACT WOULD BE IMPOSED. HE RELIED UPON THE DECISION IN THE CASE OF COMMISSIONER OF INCOME- TAX VS SUBHASH TRADING COMPANY 221 ITR 110 (GUJ) COMMISSIONER OF INCOME- TAX VS VALIMKBHAI H. PATEL 280 ITR 487 (GUJ) IN SUPPORT OF HIS CONTENTI ON. HE SUBMITTED THAT THE SLP TO THE HONBLE APEX COURT AGAINST THE DECISION OF THE HONBLE DELHI HIGH COURT WAS DISMISSED BY THE HONBLE APEX COURT IN 30 8 ITR (STATUTE) 18 (SC). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFUL LY. WE FIND THAT AN ADDITION OF RS.20 LAKHS WAS MADE BY THE AO MERELY O N THE BASIS OF ESTIMATE BY INVOKING PROVISIONS OF SECTION 145 OF THE ACT. THE AO HAS OBSERVED THAT THE ASSESSEE WAS NOT MAINTAINING STOCK REGISTER DURING THE RELEVANT YEAR. THERE IS NO MATERIAL BROUGHT ON RECORD IN THIS CASE TO SUGGE ST THAT THE ASSESSEE HAS IN FACT CONCEALED ITS INCOME OR HAS FILED INACCURATE P ARTICULARS OF INCOME. THE REASONS GIVEN BY THE AO FOR REJECTION OF THE ACCOUN TS OF THE ASSESSEE MAY BE JUSTIFIED IN THE QUANTUM CASE OF THE ASSESSEE WHER EIN THE ADDITION HAS BEEN MADE TO THE TRADING RESULT OF THE ASSESSEE BUT ARE NOT SUFFICIENT TO VISIT THE ASSESSEE WITH THE PENALTY UNDER SECTION 271(1)(C). WE FIND THAT THE ASSESSEE HAS DISCLOSED ALL THE MATERIAL FACTS RELEVANT TO TH E ASSESSMENT AT THE STAGE OF ASSESSMENT ITSELF. THE CONDUCT OF THE ASSESSEE SEE MS TO BE BONA FIDE . THE CIT(A) HAS OBSERVED THAT THE AO HAS NOT TAKEN THE R ECOURSE TO ANY FURTHER INQUIRY IN THIS CASE TO ESTABLISH THE SPECIFIC CONC EALMENT BEFORE LEVYING PENALTY. THIS OBSERVATION OF THE CIT(A) COULD NOT BE CONTROVERTED BY THE REVENUE. THE DECISION OF THE HONBLE COURTS RELIED UPON BY THE LEARNED COUNSEL OF THE ASSESSEE SUPPORT THE CASE OF THE ASS ESSEE. IN THE ABSENCE OF ANY MATERIAL BEING BROUGHT ON RECORD ON BEHALF OF THE R EVENUE TO JUSTIFY IMPOSITION OF PENALTY WE ARE OF THE VIEW THAT THERE IS NO MIS TAKE IN THE ORDER OF THE CIT(A) IN HOLDING THAT THE AO WAS NOT JUSTIFIED IN LEVYING OF PENALTY UNDER ITA NO.3173/AHD/2009 -3- SECTION 271(1)(C) OF THE ACT AND ACCORDINGLY THE OR DER OF THE CIT(A) IS CONFIRMED AND THE GROUNDS OF THE APPEAL OF THE REVE NUE ARE DISMISSED. 5. IN THE RESULT THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( .%.&'( /A.K. GARODIA) %) * /ACCOUNTANT MEMBER ( .. /G.C. GUPTA ) !'# !'# !'# !'# /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD