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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM
PER SHRI VIKRAM SINGH YADAV, A.M.
These are two appeals filed by the Revenue against the deletion of penalty levied u/s 271(1)(c) of the IT Act by the Ld. CIT(A), Ajmer vide his orders of even date i.e. 12.07.2016 for A.Y. 2008-09 and 2009-10. Further the assessee has also filed its Cross Objection for both the years in support of the order of the ld CIT(A) wherein it has been prayed that penalty levied by the AO has rightly been deleted by the ld CIT(A).
ITA No. 881 & 882 JP/16 ITO Ward 2(3), Ajmer vs. M/s Kekri Sahakari Bhoomi Vikas Bank Ltd. 2. At the outset, it was brought to the notice of the Bench that the Co-ordinate Bench vide its order dated 12.02.2016 in ITA No.23/JP/15 and 505/JP/15 has deleted the additions in the quantum proceedings for the subject assessment years. Further it was also brought to the notice of the Bench that ld. CIT(A) has deleted the penalty following the deletion of additions by the Coordinate Bench vide its order dated 12.02.2016.
The relevant findings of the Coordinate Bench in ITA No. 23/JP/15 and 505/JP/15 is reproduced as under: “We have heard the rival arguments and perused the material available on record. The assessee has clearly demonstrated through its loan disbursed statement that during A.Y. 2008-09, it had disbursed 89.10% of its total loan disbursed towards agricultural and allied activities. Similarly, during A.Y. 2009- 10 the disbursement towards these activities was to the tune of 86.41%. Hence, following the Coordinate Bench decision as referred supra, we hereby confirm the claim of assessee for deduction u/s 80P(2)(a)(i) of the Act for both the years. Hence, ground taken by the assessee is allowed.”
The ld. DR is heard who has relied upon the order of the AO. At the same time, he has fairly agreed that the additions in the quantum proceedings have been deleted by the Coordinate Bench vide its order dated 22.02.2016.
After hearing both the parties and perusing the material available on record, it is clear that the subject matter for levy of penalty has already been deleted by the Coordinate Bench in quantum proceedings vide its order dated 22.02.2016. The Coordinate Bench has upheld the assessee’s claim for deduction u/s 80P(2)(a)(i) of the Act and the additions made by the Assessing officer by way of denial of deduction u/s 80P(2)(a)(i) of the Act has been deleted. Given that the addition, on which the penalty has been levied, has been deleted by the Coordinate Bench in the quantum proceedings, there is no
ITA No. 881 & 882 JP/16 ITO Ward 2(3), Ajmer vs. M/s Kekri Sahakari Bhoomi Vikas Bank Ltd. basis for levy of penalty and the penalty doesn’t therefore survive. We accordingly confirm the order of the ld CIT(A) deleting the levy of penalty for both the impunged years.
In the result all the appeals filed by the Revenue are dismissed and cross- objections filed by the assessee are allowed.
Order pronounced in the open court on 02/01/2017. Sd/- Sd/- (KUL BHARAT) (VIKRAM SINGH YADAV) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Jaipur Dated:- 02/01/2017 Pillai आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- The ITO, ward 2(3), Ajmer 1. izR;FkhZ@ The Respondent- M/s Kekri Sahakari Bhoomi Vikas Bank 2. Ltd, Kekri 3. vk;dj vk;qDr@ CIT –Ajmer vk;dj vk;qDr¼vihy½@The CIT(A)-Ajmer 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. 6. xkMZ QkbZy@ Guard File (ITA No.881 & 882 and CO. 42 & 43 /JP/2016)
vkns'kkuqlkj@ By order, सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत.