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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI BHAGCHAND, AM & SHRI KUL BHARAT, JM vk;dj vihy la-@ITA No. 740/JP/2015
PER SHRI KUL BHARAT, JM.
This appeal by the assessee is directed against the order of ld. CIT (Appeals),
Alwar dated 27.08.2015 pertaining to A.Y. 2010-11. The assessee has raised the
following grounds of appeal :-
In the facts and circumstances of the case and in law the ld. CIT (A) has erred in sustaining the penalty order u/s 271(1)(b) passed by the Asstt. Commissioner of Income-tax, Circle-2, Alwar. The action of the ld. CIT (A) is illegal, arbitrary, unjustified and against the facts of the case.
In the facts and circumstances of the case and in law the ld. CIT (A) has erred in confirming the action of the ld. ACIT, Circle-2, Alwar in imposing the penalty to the extent of R. 20,000/- out of R. 40,000/-.
2 ITA No. 740/JP/2015 M/s. Dalas Biotech Ltd.
Briefly stated the facts are that the case of the assessee was picked up for
scrutiny assessment and the assessment under section 143(3) of the I.T. Act, 1961
(hereinafter referred to as the Act) was framed vide order dated 28.03.2013. While
framing the assessment, the AO made various additions/disallowances thereby
assessed the total income of the assessee at Rs. 4,65,94,491/- against the declared
income of Rs. 3,78,83,890/- and initiated penalty proceedings. Subsequently, the
AO vide order dated 30.09.2013 passed under section 271(1)(b) read with section
274 of the Act levied penalty of Rs. 40,000/-. Aggrieved by the order, the assessee
carried the matter before ld. CIT (A), who after considering the submissions, partly
deleted the penalty.
Now the assessee is in appeal before us.
At the time of hearing, none appeared on behalf of the assessee though the
notice of hearing was duly served on the Counsel of the assessee.
4.1. The ld. D/R supported the orders of the authorities below.
4.2. We have heard ld. D/R and considered the material available on record and
gone through the orders of the lower authorities. It transpired from the record that
the assessee has participated in the proceedings and the assessment was not
passed ex parte. The ld. Counsel for the assessee placed reliance on the various
judicial pronouncements of the Hon’ble High Court and Coordinate Bench of the
Tribunal in support of its case that penalty is not leviable. In the written submission
placed on record, the ld. Counsel placed reliance on the order of ld. CIT (A), Alwar
dated 18.08.2015 for the A.Y. 2010-11 in the case of M/s. Ujala Pumps Pvt. Ltd.
exactly on similar issue, wherein the ld. CIT (A) deleted the penalty. The ld. D/R has
not brought on record any contrary material supporting the orders of the authorities
3 ITA No. 740/JP/2015 M/s. Dalas Biotech Ltd.
below. Under these facts, considering the judgment relied on by the assessee in the
case of Akhil Bhartiya Prathmik Shikshak Sangh Bjhawan Trust vs. Assistant Director
of Income Tax, 115 TTJ 419 (Del.) and the orders of the Coordinate Bench in the
case of M/s. Zunzubhai P. Patel, Surat vs. AO in ITA No. 3194/Ahd/2009 dated
13.05.2011 and also order of ld. CIT (A) dated 18.08.2015 on similar issue, we set
aside the order of ld. CIT (A) and direct the AO to delete the penalty.
In the result, appeal of the assessee is allowed.
Order is pronounced in the open court on 07.02.2017.
Sd/- Sd/- ( HkkxpUn ½ ( dqy Hkkjr) ( BHAGCHAND) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 07/02/2017. Das/
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- M/s. Dalas Biotech Ltd., Bhiwadi. 2. The Respondent –The ACIT Circle-2, Alwar. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 740/JP/2015)
vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत
4 ITA No. 740/JP/2015 M/s. Dalas Biotech Ltd.