SHRI PIYUSH PRAKASHCHANDRA GHADIALI,,SURAT vs. THE INCOME TAX OFFICER, WARD-2(4), ( NOW ITO, WARD- 1(2)(4)),, SURAT

Piyush Prakashchandra Ghaliali Vs. ITO, Ward-1(2)(4), Surat /ITA No.2066/AHD/2015 Page 1 of 2 आयकर अपील�य अ�धकरण,सुरत �यायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER आ.अ.सं./I.T.A.No.2066/AHD/2015 �नधा�रण वष�/Assessment Year : 2008-09 Shri Piyush Prakashchandra Ghadiali, Vs. The Income Tax Officer 2/375, Pariswad, Ghanti Sheri, Ward-1(2),(4), Surat. Rustampura, Surat – 395 002. [PAN: ANJPG 4306 M] अपीलाथ� Appellant ��यथ�/Respondent �नधा�रती क� ओर से /Assessee by: Shri P.M.Jagasheth – CA राज�व क� ओर से /Revenue by: Shri Prasoon Kabra - Sr.DR

15.05.2019 सुनवाई की तारीख/ Date of hearing: उ�घोषणा क� तार�ख/Pronouncement on: 15.05.2019 आदेश /O R D E R PER BHAVNESH SAINI, JM: This appeal by the Assessee has been directed against the order 1. of Learned Commissioner of Income Tax (Appeals)-II [ld.CIT(A)], Surat dated 09.06.2015 for assessment year 2008-09 challenging the levy of penalty u/s.271(1)(c) of the Act.

The assessee is engaged in the business of small scale trading 2. during the year under consideration. The Assessing Officer noted that assessee has enhanced his capital and in absence of any explanation and evidence addition of Rs.7,12,775/- was made. On this addition, penalty u/s.271(1)(c) of the Act was levied which is confirmed by the ld.CIT(A).

The Learned Counsel for the assessee at the outset submitted the 3. assessee preferred appeal against the quantum addition before ITAT

Piyush Prakashchandra Ghaliali Vs. ITO, Ward-1(2)(4), Surat /ITA No.2066/AHD/2015 Page 2 of 2

Surat in ITA No.2829/Ahd/2012/SRT and the addition has been deleted by the Tribunal vide order dated 01.11.2018. Copy of the order is placed on record.

The Learned Departmental Representative did not dispute this. 4.

Considering the above facts, it is clear that the addition has been 5. deleted by the ITAT in the case of the same assessee on which penalty have been levied. Since foundation of the penalty has gone, therefore there was no justification to levy the penalty u/s.271(1)(c) of the Act.

We, accordingly, set-aside the orders of the authorities below and 6. cancel the penalty.

In the result, appeal of the assessee is allowed. 7. The order pronounced in the open court 15-05-2019. 8. Sd/- Sd/- (O.P.MEENA) (BHAVNESH SAINI) (लेखासद�यकेसम� /ACCOUNTANT MEMBER) (�याियकसद�यतथा/JUDICIAL MEMBER) सुरत/ Surat, �दनांक Dated: 15th May , 2019/S.Gangadhara Rao, Sr.PS Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order / / TRUE COPY / / Assistant Registrar, Surat