The ACIT-1(2), Bhopal v. M/s. C.I. Builders (Pvt.) Ltd., Bhopal

ITA 391/IND/2013 | 2007-2008
Pronouncement Date: 29-10-2013 | Result: Dismissed

Appeal Details

RSA Number 39122714 RSA 2013
Assessee PAN AABCC6163G
Bench Indore
Appeal Number ITA 391/IND/2013
Duration Of Justice 4 month(s) 26 day(s)
Appellant The ACIT-1(2), Bhopal
Respondent M/s. C.I. Builders (Pvt.) Ltd., Bhopal
Appeal Type Income Tax Appeal
Pronouncement Date 29-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 29-10-2013
Assessment Year 2007-2008
Appeal Filed On 03-06-2013
Judgment Text
1 INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI R.C. SHARMA ACCOUNTANT MEMBER ITA NOS. 390 & 391/IND/2013 A.YS. 2006-07 & 2007-08 ASSTT. COMMISSIONER OF INCOME TAX 1(2) BHOPAL :: APPELLANT VS M/S C.I. BUILDERS (P) LIMITED BHOPAL PAN AABCC 6163G :: RESPONDENT ASSESSEE BY SHRI A.K. RINWA REVENUE BY SHRI BHIM KUNVAR DATE OF HEARING 29.10.2013 DATE OF PRONOUNCEMENT 29.10.2013 O R D E R PER JOGINDER SINGH JUDICIAL MEMBER BOTH THESE APPEALS ARE BY THE REVENUE ON THE GROU ND THAT THE LEARNED FIRST APPELLATE AUTHORITY ERRED IN CANC ELLING THE 2 PENALTY OF RS. 4 LACS AND RS. 9 LACS RESPECTIVELY I MPOSED U/S 271(1)(C) OF THE ACT. 2. AT THE TIME OF HEARING THE LEARNED SR. DR DEFEN DED THE IMPOSITION OF PENALTY BY SUBMITTING THAT THE LEARNE D CIT(A) WRONGLY DELETED THE SAME. ON THE OTHER HAND THE LE ARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE QUANTUM ADDITION HAS BEEN DELETED THEREFORE THE PENALTY WAS RIGHTL Y CANCELLED BY CIT(A). THIS ASSERTION OF THE LEARNED COUNSEL WAS N OT CONTROVERTED BY THE REVENUE THAT QUANTUM ADDITION HAS BEEN DELET ED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. BEFORE COMING TO ANY CONCLUSION WE ARE REPRODUCING HEREUNDER THE RELEVANT PORTION FROM THE ORDER OF THE LEARNED CIT(A) AS MENTIONED IN PARA 6 (PAGE 3) FOR READY REFERENCE :- 6. I HAVE CAREFULLY CONSIDERED SUBMISSION OF THE APPELLANT AND FACTS OF THE CASE. THE A.O. HAS LEVIE D PENALTY U/S 271(1)(C) FOR A.Y. 2006-07 ON THE BASIS OF DISALLOWANCE OF CLAIM OF DEDUCTION U/S 80IB(10) OF RS. 9 61 601/-. IN THE APPEAL FILED BY THE APPELLANT T HE HONBLE ITAT INDORE BENCH INDORE IN ITANO. 299 TO 305/IND/2010 FOR A.YS. 2001-02 TO 2007-08 ORDER DATED 31.01.2012 HAS SET ASIDE THE ISSUE REGARDING ALLOWANCE OF DEDUCTION U/S 80IB(10) TO THE FILE OF A.O. FOR A.Y. 2006-07 UNDER CONSIDERATION TO VERIFY THE COMPLETION CERTIFICATE DATED 22.03.2010 FURNISHED B Y 3 THE APPELLANT. THE RELEVANT PORTIONS OF THE ORDER O F ITAT IN PARA 43 IS REPRODUCED AS UNDER : 43. WITH RESPECT TO THE ASSESSMENT YEAR 2006-07 AND 2007-08 THE CONTENTION OF THE ASSESSEE WAS THAT COMPLETION CERTIFICATE WAS OBTAINED ON 22.3.2010 VIDE DISPATCH NO. 7026/2009-10. OUR ATTENTION WAS ALSO DRAWN TO THE CERTIFIED COPY OF THE COMPLETION CERTIFICATE ENCLOSED AT PAGE 3 OF THE SUBMISSION. WE FOUND THAT WITH RESPECT TO THE PROJECT UNDERTAKEN DURING THE ASSESSMENT YEAR 2006-07 & 2007-07 THE ASSESSEE WAS REQUIRED TO SUBMIT COMPLETION CERTIFICATE WITHIN 4 YEARS. THE COMPLETION CERTIFICATE SO OBTAINED BY THE ASSESSEE DATED 22.03.2010 WAS OBTAINED WITHIN 4 YEARS. SINCE THE CERTIFICATE WAS NOT BEFORE THE LOWER AUTHORITIES WE RESTORE THIS MATTER TO THE FILE OF ASSESSING OFFICER FOR VERIFYING THE CERTIFICATE SO PLACED ON RECORD AND TO DECIDE AFRESH THE ISSUE OF COMPLETION OF PROJECT BY THE ASSESSEE. IT IS NOTICED THAT THE A.O. HAD GIVEN EFFECT TO THE DECISION OF HONBLE ITAT IN ORDER U/S 254 DATED 30.03.2012 WHE REIN THE A.O. HAD ALLOWED THE APPELLANTS CLAIM OF DEDUC TION U/S 80IB(10) AND ASSESSED THE INCOME OF THE APPELL ANT AT RS. NIL. IN VIEW OF THE ABOVE SINCE IN THE INSTANT CASE T HE ADDITION ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S 80IB(10 ) MADE BY THE A.O. ON THE BASIS OF WHICH PENALTY HAS BEEN LEVIED HAD BEEN SET ASIDE BY THE HONBLE ITAT AND THE A.O. WHILE GIVING EFFECT TO THE DECISION OF HONBLE ITAT HAD A LLOWED THE DEDUCTION U/S 80IB(10) AND ASSESSED THE INCOME OF THE APPELLANT AT RS. NIL THERE REMAINS NO BASIS FOR SU STAINING PENALTY U/S 271(1)(C) LEVIED BY THE A.O. HENCE THE PENALTY U/S 271(1)(C) OF RS. 4 00 000/- LEVIED BY THE A.O. DESERVES TO BE CANCELLED. IN VIEW OF THE ABOVE UNCONTROVERTED FINDING WHEN T HE BASIS ON WHICH THE PENALTY WAS LEVIED NO MORE REMAINS IN EX ISTENCE WE 4 ARE OF THE VIEW THAT THE PENALTY IMPOSED U/S 271(1) (C) DOES NOT SURVIVE. THE INDORE BENCH OF THE TRIBUNAL IN OTHER CASES HAD BEEN TAKING CONSISTENT STAND THAT WHEN QUANTUM ADDI TION IS DELETED THE PENALTY HAS BEEN RIGHTLY CANCELLED. EV EN OTHERWISE OUR VIEW IS FORTIFIED BY THE DECISION IN CIT VS. BH AGWAN LIMITED; 68 ITR 846 (CAL); CIT VS BENGAL JUTE MILLS CO. LTD. ; 174 ITR 402 (CAL); CIT VS. MADANLAL SOHANLAL; 176 ITR 189 (CAL) ; CIT VS. AGRAWALA BROTHERS; 189 ITR 786 (PAT); CIT VS. ROY D URLABHJI; 211 ITR 470 (RAJ) AND K.C. BUILDERS VS. ACIT; 265 ITR 5 62 (SC). IN VIEW OF UNCONTROVERTED FACTS AND THE JUDICIAL PRONO UNCEMENTS MENTIONED ABOVE WE FIND NO INFIRMITY IN THE CONCLU SION DRAWN BY THE LEARNED CIT(A). FINALLY THESE APPEALS OF THE REVENUE ARE HAVING N O MERIT CONSEQUENTLY DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 29.10.2013. SD/- SD/- (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 29.10.2013 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR GU ARD FILE VYAS 5