The ITO, Vapi Ward 3, Vapi v. M/s Royale Impex,

ITA 933/AHD/2009 | 2004-2005
Pronouncement Date: 19-07-2011 | Result: Dismissed

Appeal Details

RSA Number 93320514 RSA 2009
Assessee PAN AAEFR9752Q
Bench Ahmedabad
Appeal Number ITA 933/AHD/2009
Duration Of Justice 2 year(s) 3 month(s) 23 day(s)
Appellant The ITO, Vapi Ward 3, Vapi
Respondent M/s Royale Impex,
Appeal Type Income Tax Appeal
Pronouncement Date 19-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 19-07-2011
Date Of Final Hearing 19-07-2011
Next Hearing Date 19-07-2011
Assessment Year 2004-2005
Appeal Filed On 27-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND A. MOHAN ALAN KAMONY AM) ITA NO.933/AHD/2009 A. Y.: 2004-05 THE INCOME TAX OFFICER VAPI WARD =3 ROOM NO.204 SHIVAM COMMERCIAL COMPLEX N. H. NO.8 VAPI VS M/S. ROYALE IMPEX SURVEY NO.327/4 ATHAL U. T. OF DADRA NAGAR HAVELI PA NO. AAEFR 9752 Q (APPELLANT) (RESPONDENT) APPELLANT BY SHRI P. R. GHOSH DR RESPONDENT BY SHRI M. K. PATEL AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-I SURAT DATED 15 TH JANUARY 2009 FOR ASSESSMENT YEAR 2004-05 CHALLENG ING THE DELETION OF LEVY OF PENALTY U/S 271 (1) ( C ) OF THE IT ACT. 2. IN THE PENALTY ORDER THE AO HAS STATED THAT TH E ASSESSEE HAD FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR UNDE R APPEAL DECLARING NIL INCOME. ASSESSMENT WAS COMPLETED DISALLOWING TH E DEDUCTION OF RS.35 50 730/- CLAIMED U/S 80 IB OF THE IT ACT. PEN ALTY WAS ACCORDINGLY IMPOSED VIDE SEPARATE ORDER WHICH IS CH ALLENGED BEFORE THE LEARNED CIT(A). THE LEARNED CIT(A) CONSIDERING THE FACT THAT ALL ITA NO.933/AHD/2009 ITO VAPI WARD-3 VAPI VS M/S. ROYALE IMPEX 2 THE FACTS HAVE BEEN DISCLOSED AND THAT NO FACTS HAV E BEEN CONCEALED HELD THAT MERE DISALLOWANCE OF DEDUCTION U/S 80IB O F THE IT ACT WOULD NOT AMOUNT TO CONCEALMENT OF INCOME AND ACCORDINGLY DELETED THE PENALTY. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE ASSESSEE PREFERRED APPEAL BEFORE THE TRIBU NAL ON QUANTUM CHALLENGING THE DISALLOWANCE U/S 80 IB OF THE IT AC T IN ITA NO.2971/AHD/2007 OF THE SAME ASSESSMENT YEAR AND TH E TRIBUNAL ALLOWED THE APPEAL OF THE ASSESSEE VIDE ORDER DATED 11-06-2010 ALLOWING THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/ S 80 IB OF THE IT ACT. THE AO WAS HOWEVER DIRECTED TO VERIFY THE CA LCULATION OF THE DEDUCTION U/S 80 IB OF THE IT ACT. COPY OF THE ORDE R OF THE TRIBUNAL IS PLACED ON RECORD. COPY OF THE SAME IS ALSO GIVEN TO THE LEARNED DR WHO HAS NOT DISPUTED THE ORDER OF THE TRIBUNAL. 4. ON CONSIDERATION OF THE FACTS WE ARE OF THE VIE W THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL. PENALTY WAS IMPOS ED ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S 80 IB OF THE IT ACT. THE MATTER REACHED THE TRIBUNAL AND CLAIM OF THE ASSESSEE HAS BEEN ALL OWED SUBJECT TO VERIFICATION OF THE CALCULATION OF DEDUCTION BY THE AO VIDE ORDER DATED 11-06-2010. THEREFORE THE BASIS OF LEVY OF PENALTY ITSELF HAS DISAPPEARED AND AS SUCH THERE IS NO JUSTIFICATION F OR LEVY OF THE PENALTY ON THE SAME MATTER IN ISSUE. THE DEPARTMENT AL APPEAL HAS NOT MERIT AND IS DISMISSED. ITA NO.933/AHD/2009 ITO VAPI WARD-3 VAPI VS M/S. ROYALE IMPEX 3 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19-07-2011 SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 19-07-2011 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