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Income Tax Appellate Tribunal - Ahmedabad

Ahmedabad Steel Craft Ltd.,, Ahmedabad vs Department Of Income Tax on 16 September, 2011

      IN THE INCOME TAX APPELLATE TRIBUNAL,
              " C " BENCH, AHMEDABAD
            Before Shri D.K.TYAGI, JUDICIAL MEMBER
        and Shri A. K. GARODIA, ACCOUNTANT MEMBER
                       I.T.A. No. 1600/ Ahd/2011
                       (Assessment year 2004-05)

DIT, (OSD), Range I,                Vs.     Ahmedabad Steel Craft Ltd.,
Ahmedabad                                   205/206, Abhijit,
                                            Nr. Mithakhali Six Road,
                                            Navrangpura, Ahmedabad

       PAN/GIR No. : AACCCA3036B

        (APPELLANT)                    ..          (RESPONDENT)

          Appellant by:      Shri Vinod Tanwani. Sr. DR
          Respondent by:     Shri Suresh Gandhi, AR

            Date of hearing:       16.09.2011
            Date of pronouncement: 23.09.2011
                             ORDER

PER SHRI A. K. GARODIA, AM:-

This is revenue's appeal directed against the order of Ld. CIT(A) VI, Ahmedabad dated 04.04.2011 for the assessment year 2004-05.

2. The grounds raised by the revenue are as under:

"1. The Ld. CIT(A) erred in law and on facts in deleing the penalty of Rs.5,01,355/- levied u/s 271(1)(c) of the Income tax Act, 1961.

On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O. to the extent mentioned above, since the assessee has failed to disclose his true income.

The appellant prays that the order of CIT(A) on the above ground be set aside and that of the A.O. be restored. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary."

3. The Ld. D.R. of the revenue supported the penalty order whereas, the Ld. A.R. of the assessee supported the order of Ld. CIT(A). It is also submitted by him that in quantum appeal, both the issues regarding disallowance of deduction u/s 80HHC of the Income tax Act, 1961 of Rs.13,64,232/- and disallowance of Rs.2,707/- of short term capital loss by invoking the provisions of Section 94(7) were restored back by the Tribunal to the file of A.O. for a fresh decision in I.T.A.No. 3563 and 3813/Ahd/2007 dated 26.11.2010 and he submitted a copy of this tribunal order.

4. We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below and the Tribunal decision in quantum proceedings of the assessee for this very year. We find that the penalty has been imposed by the A.O. in respect of disallowance made by the A.O. of the deduction claimed by the assessee u/s 80HHC and also in respect of disallowance of short term capital loss of Rs.2,707/-, which was made by the A.O. by invoking the provisions of Section 94(7) of the Income tax Act, 1961. In the quantum proceedings the disallowance of the assessee's claim for deduction u/s 80HHC had been restored back by this tribunal to the file of the A.O. for a fresh decision by following another tribunal decision in assessee's own case for the assessment years 2002-03 and 2003-04. Hence, the penalty with regard to this disallowance has to be decided afresh after ascertaining the final decision on this issue in quantum proceedings, which has been restored back by the Tribunal to the file of A.O. for a fresh decision. It was submitted by the Ld. A.R. that the same is still pending. The penalty with regard to disallowance of short term capital loss of Rs.2,707/- is very small and hence, we feel that in the facts of the present case, the entire penalty matter should go back to the file the Ld. CIT(A) for a fresh decision after ascertaining the final position in quantum proceedings.

With these observations, we set aside the order of CIT(A) and restore the matter back to the file of CIT(A) for a fresh decision as discussed above.

5. In the result, appeal of the revenue stands allowed for statistical purposes.

6. Order pronounced in the open court on 23rd Sep., 2011.

      Sd./-                                         Sd./-
(D.K. TYAGI)                                  (A. K. GARODIA)
JUDICIAL MEMBER                               ACCOUNTANT MEMBER
Ahmedabad;   Dated : 23.09. 2011
Sp

Copy of the Order forwarded to:
  1.     The applicant
  2.     The Respondent
  3.     The CIT Concerned
  4.     The Ld. CIT (Appeals)
  5.     The DR, Ahmedabad                          By order
  6.     The Guard File
                                                    AR,ITAT,
                                                    Ahmedabad

     1. Date of dictation......20/9

2. Date on which the typed draft is placed before the Dictating Member......21/9 Other Member ............

3. Date on which the approved draft comes to the Sr. P.S./P.S. 22/9

4. Date on which the fair order is placed before the Dictating Member for pronouncement ...23/9

5. Date on which the fair order comes back to the Sr. P.S./P.S.23/9

6. Date on which the file goes to the Bench Clerk ......23/09/2011

7. Date on which the file goes to the Head Clerk .......................

8. The date on which the file goes to the Assistant Registrar for signature on the order .........................

9. Date of Despatch of the order. .......................