APEX CONSTRUCTIONS,KHEDA vs. THE DCIT, KHEDA CIRCLE, NADIAD

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ITA 7/AHD/2018Status: DisposedITAT Ahmedabad23 July 2019AY 2012-132 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the addition of Rs. 10,75,000/- was deleted by a co-ordinate bench, the foundation for the penalty order was lost. Consequently, the penalty became infructuous.

What were the facts?

The assessee, engaged in road construction, declared a total income which was finalized by the AO with an addition of Rs. 10,75,000/- under Section 68. A penalty was levied based on this addition.

What were the issues?

The primary issue was whether penalty under Section 271(1)(c) could be sustained when the addition forming the basis of the penalty was subsequently deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘SMC’

Before: SHRI WASEEM AHMED

Hearing: 01/07/2019Pronounced: 23/07/2019

PER MADHUMITA ROY- JM:

1.

The instant appeal filed by assessee is directed against the order dated 18.10.2017 passed by the CIT(A)-2, Vadodara arising out of the order dated 12.09.2016 passed by the DCIT, Kheda Circle, Nadiad under Section271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Financial Year 2012-13

2.

The brief facts leading to the case is this that the assessee engaged in the business of construction of road and a registered Government approved contractor filed its return of income on 29.09.2012 declaring total income at Rs. 26,64,550/- for A.Y. 2012-13 which was finalised by the Ld. AO upon making addition of Rs. 10,75,000/- under Section 143(3) of the Act on 26.02.2015 on account of unexplained cash credit under Section 68 of the Act which in turn confirmed by the Ld. CIT(A) in first appeal on 18.04.2016. However, the same was deleted by the Co-ordinate Bench on 29.11.2018 in ITA No. 1496/Ahd/2016.

ITA No. 07/Ahd/2018 A.Y. 2012-13

The penalty proceeding initiated by the Ld. AO was, however, finalised upon levying penalty of Rs. 3,32,180/- on 12.09.2016 against which appeal was preferred but without any result. Hence, the instant appeal before us.

3.

None is appearing on behalf of the assessee but a written note of submission was duly filed by the assessee for proper adjudication of the matter. We find since the quantum of addition of Rs. 10,75,000/- has been deleted by the Co-ordinate Bench in appeal as it appears at Page 14 to 16 of the compilation filed by the assessee before us we find no basis for levy of penalty against the assessee by the Ld. AO. Since the addition has been deleted the very foundation of the penalty order has lost its force; the same become infructuous. Hence, the appeal is found to be devoid of any merit and dismissed as infructuous.

4.

In the result, the appeal of the assessee is dismissed.

[Order pronounced in the Court on 23-07-2019.]

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