LIPI SPECIFIC FAMILY TRUST,AHMEDABAD vs. THE ACIT,CIRCLE-6, AHMEDABAD

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ITA 881/AHD/2015Status: DisposedITAT Ahmedabad24 November 2017AY 2005-062 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal deleted the penalty because the quantum addition, on which the penalty was based, had already been deleted in a separate appeal. Therefore, the penalty could not survive.

What were the facts?

The assessee's assessment was completed with a disallowance under Section 80IB. A penalty was levied under Section 271(1)(c) based on this disallowance. The CIT(A) upheld the penalty.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying addition has been deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 80IB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH, AHMEDABAD

ITA No. 881/Ahd/2015 Lipi Specific Family Trust vs. ACIT Assessment year: 2005-06 Page 1 of 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH, AHMEDABAD [Coram: Pramod Kumar AM and S S Godara JM]

ITA No. 881/Ahd/2015 Assessment Year : 2005-06

Lipi Specific Family Trust .......…………......Appellant Prop. Nandishwari Packaging, Plot No. 2, Phase-I, GIDC, Vatva Ahmedabad [PAN : AAATL 1302 N] Vs.

Asstt. Commissioner of Income-tax .......................Respondent Circle-6 Ahmedabad

Appearances by: Himanshu Shah for the appellant Prasoon Kabra for the respondent

Date of concluding the hearing : 24.11.2017 Date of pronouncing the order : 24.11.2017

O R D E R Per Pramod Kumar, AM: 1. The short issue that we are required to adjudicate in this appeal is whether or not, on the facts and in the circumstances of the case, learned CIT(A) was justified in upholding the impugned penalty of Rs.12,67,460/- imposed on the assessee under section 271(1)(c) of the Income Tax Act, 1961. The assessment year involved is 2005-06 and the impugned CIT(A)’s order was passed on 27.02.2015.

2.

Briefly stated, the relevant material facts are like this. For the year under consideration, the assessment u/s 143(3) r.w.s. 147 of the Act was completed vide order dated 23.12.2010, at an assessed income of Rs.1,51,39,855/-, making disallowance of Rs.37,65,479/- under Section 80IB of the Act. On further appeal, the ld. CIT(A) has upheld the action of the Assessing Officer vide his order dated 04.01.2012 and confirmed the above said disallowance made by the Assessing Officer.

4.

Subsequent to the ld. CIT(A)’s aforesaid order confirming the disallowance made by the Assessing Officer, penalty u/s 271(1)(c) of the Act was completed vide order dated 22.03.2013, imposing a penalty of Rs.12,67,460/- being the 100% of the tax sought to be evaded. On further appeal, the impugned penalty order was upheld

ITA No. 881/Ahd/2015 Lipi Specific Family Trust vs. ACIT Assessment year: 2005-06 Page 2 of 2 by the CIT(A) vide impugned order dated 27.02.2015. The assessee appellant, being aggrieved, is in appeal before the Tribunal.

5.

At the time of hearing before us, it was pointed out by the ld. Counsel that, in the quantum appeal, the Tribunal has deleted the quantum addition vide order dated 15.02.2017 in ITA No.323/Ahd/2012 - copy of the order is placed on record. When the Tribunal has already deleted the quantum addition in question, the penalty made in respect of such addition cannot survive. We, therefore, delete the impugned penalty of Rs.12,67,460/- and allow the appeal of the assessee.

6.

In the result, appeal is allowed. Pronounced in the open court today on the 24th November, 2017.

Sd/- Sd/-

S S Godara Pramod Kumar (Judicial Member) (Accountant Member) Ahmedabad, the 24th day of November, 2017 **bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

1.

Date of dictation: ......covered matter….24.11.2017 2. Date on which the typed draft is placed before the Dictating Member: ... 24.11.2017........ 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …24.11.2017... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement:… 24.11.2017 5. Date on which the file goes to the Bench Clerk : ..29.11.2017.... 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: ……

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