Income Tax Appellate Tribunal - Chandigarh
Sh. Amrik Singh , Ludhiana vs Department Of Income Tax on 26 September, 2013
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES 'B' CHANDIGARH
BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND
MS. SUSHMA CHOWLA, JUDICIAL MEMBER
ITA No. 1065/CHD/2012
Assessment Year: 2006-07
The ACIT , .Vs. Sh. Amrik Singh
Circle-I. Prop.M/s Nexo Products(India)
Ludhiana E 92, Focal Point
Ludhiana
PAN No. AFRPS2729E
(Appellant) (Respondent)
Appellant By : Shri. Akhilesh Gupta
Respondent By : Shri. Jaswinder Singh
Date of hearing : 26/09/2013
Date of Pronouncement: 18.10.2013
ORDER
PER T.R.SOOD, A.M.
This is an appeal filed by the Revenue against the order dated 28/08/2012 of CIT (Appeals)-I, Ludhiana.
2. Following Grounds have been raised in this appeal :-
1. That Ld. CIT(A) has erred in law in deleting the penalty imposed by the A.O. at Rs. 64,61,538/- u/s 271(1)(c) for not declaring the income u/s 2(22)(e) of the I.T. Act 1961, in 2 respect of the amount received as advance from the company in which he was a director with substantial voting power with 34.71%.
2. That the order of the Ld. CIT(A) be set aside and that of A.O. be restored.
3. Before us, Ld. DR relied on the order of Assessing Officer.
4. On the other hand, Ld. Counsel for the assessee filed a copy of the order of Tribunal for assessment year 2006-07 in ITA No. 923 & 970/Chd/2009. He particularly referred to para 19 of the order through which addition made by the Assessing Officer has been deleted, therefore, penalty would not survive.
5. After considering the rival submissions, we find that addition on account of dividend income was deleted by the Tribunal vide para 19 in the assessee's case for assessment year 2006-07 in ITA Nos. 923 & 970/Chd2009. Para 19 of the order reads as under:-
"19. Accordingly, we also order to delete the sustained addition by ordering that the entire amount added in this account, by treating as deemed dividend by the AO has been deleted. Consequently, the ground raised by the assessee is allowed the ground raised by the revenue in this regard is dismissed."
6. Once the addition made stands deleted, the penalty proceedings would not survive and accordingly we confirm the action of the Ld. CIT(A) in cancelling the penalty.
3
7. In the result, Revenue's appeal is dismissed.
Order Pronounced in the Open Court on this 18.10.2013 Sd/- Sd/-
(SUSHMA CHOWLA) (T.R.SOOD)
JUDICIAL MEMBER ACCOUNTANT MEMER
Dated : 18 t h Oct, 2013
RKK
Copy to:
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR
By order
Assistant Registrar,
ITAT, Chandigarh