SH. SANJEEV GUPTA,LUDHIANA vs. ACIT, CIRCLE, LUDHIANA

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘SMD’, CHANDIGARH

BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.1209/Chd/2017 (Assessment Year : 2000-01) Sh.Sanjeev Gupta Prop.M/s Jyoti Steel, Vs. The A.C.I.T., C/o Vinod Gard, 577-B, Aggar Nagar, Circle-V, Ludhiana. Ludhiana. PAN: AANPG6524E (Appellant) (Respondent)

Appellant by : S/Shri Nikhil Goyal, CA & Ashok Goyal, CA Respondent by : Shri Manoj Kumar, Sr. DR Date of hearing : 03.07.2018 Date of Pronouncement : 07.07.2018

ORDER PER ANNAPURNA GUPTA, A.M. :

This appeal has been preferred by the assessee against

the order of learned Commissioner of Income Tax (Appeals)-

2, Ludhiana (hereinafter referred to as CIT(Appeals)) dated

30.6.2017, levying penalty u/s 271(1)(c) of the Income Tax

Act,1961, (hereinafter referred to as “Act”) relating to

assessment year 2000-01.

attention to the impugned order of the CIT(Appeals) dated

31-03-17, wherein penalty of Rs.30,000/- was imposed by

the CIT(Appeals).It was pointed out therefrom that the

penalty was levied on the enhancement made by the CIT(A)

to the income of the assessee to the extent of Rs.1 lac. It

2 ITA No.1209/Chd/2017 A.Y. 2000-01

was pointed out by the Ld. counsel for assessee that in

appellate proceedings before the Ld.CIT(Appeals) against the

order passed u/s 148 r.w.s. 144 of the Act, notice of

enhancement of income was issued to the assessee on

account of disallowance of expenditure incurred relating

to levy of penalty by the Customs Authorities and the

enhancement thereafter was made by the CIT(Appeals) after

giving due opportunity of hearing. Thereafter satisfaction

for initiating penalty proceedings was recorded by the

Ld.CIT(Appeals) and in pursuance to the same necessary

notices were issued to the assessee. In the penalty

proceedings before the CIT(Appeals) due reply was filed by

the assessee after considering which, penalty @ 100% of the

tax sought to be evaded on the enhancement made by the

CIT(Appeals) of Rs.1 lac was levied amounting to

Rs.30,000/-. The Ld. counsel for assessee pointed out that

the impugned disallowance made by the Ld.CIT(Appeals)

had been deleted by the I.T.A.T. in its order passed in ITA

No.958/Chd/2017 dated 21.12.2017. Copy of the order was

placed before us.

the CIT(Appeals) by enhancing the income of the assessee

by Rs.1 lac, had been deleted by the I.T.A.T. in the said

order.

made on which penalty was levied by the CIT(Appeals)

3 ITA No.1209/Chd/2017 A.Y. 2000-01

having been deleted by the I.T.A.T., no basis remains at all

for levying penalty and the same is directed to be deleted.

allowed.

Order pronounced in the Open Court.

Sd/- Sd/-

(SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 9th July, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR

Assistant Registrar, ITAT, Chandigarh