M/s. Priyanka Cords & Tussels Pvt.Ltd.,, Surat v. The Income tax Officer,Ward-1(4),, Surat

ITA 664/AHD/2009 | 2003-2004
Pronouncement Date: 01-07-2011 | Result: Allowed

Appeal Details

RSA Number 66420514 RSA 2009
Assessee PAN AACCP6896L
Bench Ahmedabad
Appeal Number ITA 664/AHD/2009
Duration Of Justice 2 year(s) 4 month(s) 2 day(s)
Appellant M/s. Priyanka Cords & Tussels Pvt.Ltd.,, Surat
Respondent The Income tax Officer,Ward-1(4),, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 01-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 01-07-2011
Date Of Final Hearing 30-06-2011
Next Hearing Date 30-06-2011
Assessment Year 2003-2004
Appeal Filed On 27-02-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND D. C. AGRAWAL AM) ITA NO.664/AHD/2009 A. Y.: 2003-04 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD. G-2 PARSHVA APARTMENT NR. HANDLOOM HOUSE CHOWKI SHERI SURAT VS THE INCOME TAX OFFICER WAD -1 (4) AAYAKAR BHAVAN MAJURA GATE SURAT PA NO. AACCP 6896 L (APPELLANT) (RESPONDENT) APPELLANT BY SHRI U. S. BHATI AR RESPONDENT BY SHRI H. K. LAL DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-I SURAT DATED 23 RD DECEMBER 2008 FOR ASSESSMENT YEAR 2003-04 CHALLE NGING LEVY OF PENALTY U/S 271 (1 ( C ) OF THE IT ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASS ESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME AT RS. NIL. THE AS SESSEE WAS ENGAGED IN MANUFACTURING OF CORDS AND TUSSELS. THE ASSESSEE HAD CLAIMED EXEMPTION U/S 10A OF THE IT ACT ON THE BASI S OF ITS ESTABLISHMENT FUNCTIONING IN FREE TRADE ZONE. THE C LAIM OF THE ASSESSEE WAS HOWEVER DISALLOWED AND INCOME WAS ASS ESSED AT RS.12 92 719/-. IT IS STATED THAT THE LEARNED CIT(A ) DISMISSED THE APPEAL OF THE ASSESSEE AND CONFIRMED THE ADDITION. THE AO VIDE ITA NO.664/AHD/2009 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD. VS ITO WAR D-1(4) SURAT 2 SEPARATE ORDER INITIATED AND LEVIED PENALTY U/S 271 (1) (C ) OF THE IT ACT FOR CONCEALMENT OF INCOME AND FILING INACCURATE PARTICULARS WITH REGARD TO EXEMPTION CLAIMED U/S 10A OF THE IT ACT. THE LEARNED CIT(A) CONFIRMED THE PENALTY VIDE IMPUGNED ORDER IN APPEAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE QUANTUM APPEAL WAS DECIDED BY THE TRIBUNAL FOR TWO ASSESSMENT YEARS IN THE CASE OF THE SAME ASSESSEE I N ASSESSMENT YEARS 2003-04 AND 2004-05 IN ITA NO.161/AHD/2007 AN D ITA NO.3922/AHD/2007 AND VIDE ORDER DATED 22-10-2010 TH E ORDERS OF THE AUTHORITIES BELOW WERE SET ASIDE BY THE TRIBUNAL AN D THE MATTER IS RESTORED TO THE FILE OF THE AO FOR ADJUDICATING THE ISSUE AFRESH. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. C OPY OF THE SAME IS ALSO GIVEN TO THE LEARNED DR WHICH IS NOT DISPUTED BY THE LEARNED DR. 4. ON CONSIDERATION OF THE ABOVE FACTS WE ARE OF T HE VIEW PENALTY IS NOT LEVIABLE IN THE MATTER. ON THE BASIS OF QUAN TUM ADDITION CONFIRMED BY THE LEARNED CIT(A) DENYING EXEMPTION U /S 10A OF THE IT ACT PENALTY WAS LEVIED. THE ORDERS OF THE AUTHORIT IES BELOW HAVE NOW BEEN SET ASIDE BY THE TRIBUNAL AND THE MATTER IS RE SORTED TO THE FILE OF THE AO FOR ADJUDICATION AFRESH THEREFORE NO BASIS IS LEFT FOR LEVY OF THE PENALTY. THE FOUNDATION OF LEVY OF PENALTY NO M ORE EXISTS. WE ACCORDINGLY SET ASIDE THE ORDERS OF THE AUTHORITIE S BELOW LEVYING AND CONFIRMING THE PENALTY. PENALTY IS CANCELLED. ACCOR DINGLY APPEAL OF THE ASSESSEE IS ALLOWED. HOWEVER THE AO IS AT LIBE RTY TO INITIATE PENALTY PROCEEDINGS IF SO ADVISED IN ACCORDANCE WIT H LAW AFTER PASSING ASSESSMENT ORDER IN THE ASSESSMENT YEAR IN QUESTION. ITA NO.664/AHD/2009 M/S. PRIYANKA CORDS & TUSSELS PVT. LTD. VS ITO WAR D-1(4) SURAT 3 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01-07-2011 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 01-07-2011 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD