Deputy Commissioner of Income tax,, v. Rasiklal Manikchand Dhariwal (HUF),, Pune

ITA 38/PUN/2017 | 2013-2014
Pronouncement Date: 15-11-2017 | Result: Dismissed

Appeal Details

RSA Number 3824514 RSA 2017
Assessee PAN AABCA6594R
Bench Pune
Appeal Number ITA 38/PUN/2017
Duration Of Justice 10 month(s) 9 day(s)
Appellant Deputy Commissioner of Income tax,,
Respondent Rasiklal Manikchand Dhariwal (HUF),, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 15-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 15-11-2017
Assessment Year 2013-2014
Appeal Filed On 05-01-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE . BEFORE SHRI D.KARUNAKARA RAO AM AND SHRI VIKAS AWASTHY JM WTA NO.38/PUN/2017 / ASSESSMENT YEAR : 2008-09 ACIT CIRCLE-2 AURANGABAD . /APPELLANT VS. UB AJANTA BREWERIES PVT. LTD. PLOT NO.H-8 TO H-11 MIDC WALUJ AURANGABAD 431 136 PAN : AABCA6594R . / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SMT. ACHAL SHARMA ADDL.CIT / DATE OF HEARING : 15.11.2017 / DATE OF PRONOUNCEMENT: 15.11.2017 / ORDER PER D. KARUNAKARA RAO AM : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF CIT(A)- 2 AURANGABAD DATED 05-05-2017 FOR THE ASSESSMENT Y EAR 2008-09. 2. DESPITE THE SERVICE OF NOTICE THERE WAS NONE TO REPRESENT THE CASE OF THE ASSESSEE ON 3 OCCASIONS I.E. ON 30-08- 17 07-09-17 AND 15-11-2017. CONSIDERING THE COVERED NATURE OF THE ISSUE WE ARE OF THE OPINION THAT THIS APPEAL CAN BE ADJUDICATED WIT H THE ASSISTANCE OF LD. DR FOR THE REVENUE AND THE MATERIAL AVAILABL E ON RECORD. 3. BRIEF FACTS OF THE CASE INCLUDE THAT THE ASSESSEE IS A C OMPANY AND FILED THE RETURN OF WEALTH IN RESPONSE TO NOTICE U/S.17 DEC LARING NET WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 2 WEALTH OF RS.6.79 LAKHS. AO MADE THE ADDITION AMOUNTING TO RS.8.25 CRORES IN CONNECTION WITH THE LAND ADMEASURING 66 604 SQ.M TRS. IN THIS REGARD PENALTY U/S.18(1)(C) OF THE WEALTH TAX ACT WAS INITIAT ED FOR FURNISHING OF INACCURATE PARTICULARS OF WEALTH OR CONCEALMENT OF WEALTH. ACCORDINGLY THE PENALTY AMOUNTING TO RS.8 25 000/- WAS LEV IED. CIT(A) DELETED THE SAID PENALTY CONSIDERING THE FOLLOWING. PARA 7 OF HIS ORDER IS EXTRACTED AS UNDER : 7. IN VIEW OF THE FACT THAT THE QUANTUM ADDITION WHICH FORMS THE BASIS FOR LEVY OF PENALTY HAS BEEN DELETED BY THE HONBLE ITAT . . . . . . CONSEQUENTLY THE OCCASION FOR LEVY OF PENALTY FOR CONCEALMENT OF WEALTH ALSO DOES NOT SURVIVE. HENCE I DIRECT THE ASSESSI NG OFFICER TO CANCEL THE PENALTY LEVIED BY HIM. 4. AGGRIEVED WITH THE SAID DECISION OF THE CIT(A)-2 AURANG ABAD THE REVENUE RAISED THE FOLLOWING CORE ISSUES : 1. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CA SE AND LAW LD.CWT(A) HAS ERRED IN DELETING THE PENALTY U/S.18( 1)(C) OF WEALTH TAX ACT. 2. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CAS E AND LAW LD.CWT(A) HAS FAILED TO APPRECIATE MERITS OF THE CA SE & HENCE WHETHER LD.CWT(A) WAS RIGHT & JUSTIFIED IN DELETING THE PEN ALTY ON TECHNICAL GROUNDS. 5. BEFORE US AT THE OUTSET LD. DR FOR THE REVENUE FAIRLY SUBMITTED THAT THE ADDITION OF RS.8.25 CRORES STANDS DELETED BY TH E TRIBUNAL. IN SUPPORT LD. COUNSEL FOR THE ASSESSEE FILED THE COPY OF TH E ORDER OF THE TRIBUNAL VIDE WTA NOS. 8 TO 10/PUN/2015 FOR THE ASSESSME NT YEARS 2006-07 TO 2008-09 ORDER DATED 09-02-2017. IN SUPPO RT OF THE FACT OF DELETION OF ADDITION BY THE TRIBUNAL LD. DR FOR THE REVENUE BROUGHT OUR ATTENTION TO CONTENTS OF PARA NO.8 OF THE SAID ORDER WHIC H IS RELEVANT. FOR THE SAKE OF COMPLETENESS WE PROCEED TO EXTRACT THE SAME AS U NDER : 8. . . . . . BEFORE US REVENUE HAS NOT PLACED ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE NATURE AND CHARACTER OF THE AS SET CHANGED AFTER THE ASSET WAS LEASED OUT OR THE ASSET THAT WAS EXPLOITE D BY THE ASSESSEE FOR THE PURPOSE OF ITS BUSINESS CHANGED ITS CHARACTER. IN SUCH A SITUATION WE WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 3 ARE OF THE VIEW THAT AO WAS NOT JUSTIFIED IN TREATI NG THE LAND AS BEING LIABLE FOR WEALTH TAX UNDER THE WEALTH TAX ACT 195 7. WE THEREFORE SET ASIDE THE ADDITION MADE BY AO IN ALL THE THREE YEAR S. THUS THE GROUNDS OF ASSESSEE ARE ALLOWED. 6. FROM THE ABOVE IT IS UNDISPUTED THAT THE WEALTH TAX ADDITION OF RS. 8.25 CRORES STAND DELETED AT THE LEVEL OF THE TRIBUNAL. BASED ON THE SAME CIT(A) DELETED THE RELATABLE PENALTY TOO. 7. WE HEARD LD. DR FOR THE REVENUE AND PERUSED THE SA ID ORDERS OF THE AO/CIT(A) AND ALSO THE ORDER OF THE TRIBUNAL. CONSIDE RING THE ABOVE EXTRACT FROM THE ORDER OF THE TRIBUNAL WE FIND THE ADDITION STANDS CONCLUSIVELY DELETED AND THEREFORE THE LEVY OF PENALTY DOES NOT ARIS E. 8. BEFORE PARTING WITH THE ORDER WE FIND IT RELEVANT TO SH ARE OUR VIEWS ON FILING OF FRIVOLOUS APPEALS BY THE PR. CIT-2 AURANGABAD. THIS IS A CASE OF FRIVOLOUS APPEAL AND THE PR.CIT SHOULD NOT HAVE AUTHORIZ ED FILING THIS ONE. THE PENALTY WAS DELETED BY THE CIT(A) ON CONSIDERING THE FACT THAT THE RELEVANT ADDITION WAS DELETED BY THE ITAT. PR. CIT IS WELL AWARE OF THESE FACTS. HOW THE PENALTY IS SUSTAINABLE WHEN RELATABLE QUANTUM ADDITIONS WAS ALREADY DELETED BY THE TRIBUNAL. WE ARE SU RPRISED AT THE DECISION OF THE PR.CIT-2 AURANGABAD IN AUTHORIZING THE APP EAL TO ITAT IN THIS CASE. WE EXPECT THE AUTHORIZING OF APPEAL SHOULD BE DONE CAREFULLY BY THE CONCERNED AUTHORITIES AND EXERCISE RESTRAINT IN FILI NG OF SUCH FRIVOLOUS APPEALS. ACCORDINGLY THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 9. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH DAY OF NOVEMBER 2017. SD/- SD/- (VIKAS AWASTHY) (D. KARUNAKARA RAO) /JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; DATED : 15 TH NOVEMBER 2017. WTA NO.38/PUN/2017 UB AJANTA BREWERIES PVT. LTD. 4 / COPY OF THE ORDER FORWARDED TO : BY ORDER // TRUE COPY // //TRUE COPY// SENIOR PRIVATE SECRETARY / ITAT PUNE THE APPELLANT THE RESPONDENT THE CI T(A) - 2 AURANGABAD CI T - 2 AURANGABAD % A BENCH PUNE; / GUARD FILE.