SHREE RAMA MULTI-TECH LTD.,,AHMEDABAD vs. THE DCIT CIRCLE-4(1)(1), AHMEDABAD

The assessee has raised the following grounds of appeal :-

The assessee filed return of income on 29.09.2009 declaring therein total income of Rs. Nil after set off of carried forward losses of Rs.51,22,880/-. The assessment was completed under Section 143(3) of the Income Tax Act, 1961 on 17.11.2011 determining total income at Rs. Nil after set off of carried forward loss of Rs.7,03,63,883/- by making the following additions/disallowances :-

Penalty proceedings were initiated by issuing notice under Section 274 read with Section 271(1)(c) of the Act dated 17.11.2011. In the meanwhile, the assessee filed appeal before the CIT(A) and the CIT(A) vide order dated 23.02.2015 confirmed the additions/disallowances related to depreciation on tangible assets, prior period expenses, provisions of doubtful debts & depreciation on closed unit. Though the additions/disallowances were confirmed to the extent of Rs.2,09,68,738/-, the Assessing Officer imposed penalty of Rs.71,27,274/- in respect of additions/disallowances which were confirmed by the CIT(A).

Being aggrieved by the penalty order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

The Ld. DR relied upon the Assessment Order, Penalty Order and the Order of the CIT(A).

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the very basis on which the penalty has been imposed under Section 271(1)(c) of the Act has been deleted by the Tribunal and thus the penalty does not sustain. Besides this, on merit, the Department could not point out that there is any concealment of income or furnishing of inaccurate particulars of income on the part of the assessee before the Assessing Officer. Hence, the appeal of the assessee is allowed.

In the result, appeal filed by the assessee is allowed.