Smt. Malini B. Kania, Surat v. The Income tax Officer, Ward-5(3),, Surat

IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABAD CAMP AT SURAT (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBLE SH RI D.C. AGRAWAL A.M.) I.T.A. NO. 792/AHD./2008 ASSESSMENT YEAR : 2002-2003 SMT. MALINI B. KANIA SURAT -VS.- INCOME TAX OFFICER WARD-5(3) SURAT (PAN : ADDPK 4410 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.N. VEPARI RESPONDENT BY : SHRI SANJEEV KASHYAP SR. D.R. O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER DATED 07.01.2008 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-III SURAT CONF IRMING THE PENALTY OF RS.1 75 402/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2002-03. 2. AT THE TIME OF HEARING BEFORE US BOTH SIDES CON CEDED THAT PENALTY IN QUESTION UNDER SECTION 271(1)(C) WAS LEVIED BY THE ASSESSING OFFIC ER IN RESPECT OF ADDITION OF RS.6 25 000/- WHICH IS CONFIRMED BY THE LD. CIT(A) ALONGWITH THE ADDITION MADE ON ACCOUNT OF COMMISSION INCOME OF RS.12 117/-. 3. IN QUANTUM APPEAL ITAT D BENCH AHMEDABAD VI DE ORDER DATED 17.04.2009 IN ITA NO. 527/AHD/2006 IN ASSESSEES OWN CASE FOR ASSESSM ENT YEAR 2002-03 ACCEPTED THE CONTENTION OF THE ASSESSEE BY MENTIONING THAT A SUM OF RS.6 25 000/- WAS WITHDRAWN BY THE ASSESSEE FROM THE BANK FOR PURCHASING STAMP PAPERS AND THAT MONEY WAS KEPT WITH HER FOR 20 DAYS. IN VIEW OF THE DECISION DATED 17.04.2009 OF ITAT D BENCH A HMEDABAD IN ITA NO. 527/AHD/2006 IN QUANTUM APPEAL BOTH SIDES CONCEDED THAT PENALTY UN DER SECTION 271(1)(C) IS NOW REQUIRED TO BE CANCELLED BECAUSE THE ADDITION ON THE BASIS OF WHIC H THE PENALTY WAS LEVIED HAS BEEN CANCELLED. 2 ITA NO. 792/AHD/2008 4. AFTER HEARING BOTH THE SIDES WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW AS WELL AS THE DECISION DATED 17.04.2009 OF I TAT D BENCH AHMEDABAD IN ITA NO. 527/AHD/2006 FOR THE ASSESSMENT YEAR 2002-03 IN QUA NTUM APPEAL PENALTY OF RS.1 75 402/- LEVIED BY THE ASSESSING OFFICER AND CONFIRMED BY TH E LD. CIT(A) IS HEREBY CANCELLED. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 28.05.2010 . SD/- SD/- (D.C. AGRAWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 / 05 /2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AHMEDABAD LAHA/SR.P.S.