Income Tax Appellate Tribunal - Ahmedabad
M.P.Patel Infrastructure Pvt. Ltd.,, ... vs The Acit, (Osd)-I, Circle-4,, ... on 3 April, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH
(BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
& SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER)
ITA. Nos: 2328 & 2782/AHD/2013
(Assessment Years: 2009-10 & 2007-08)
M.P. Patel Infrastructure V/S Asst. Commissioner of
Pvt. Ltd. D/415, Income Tax (OSD)-I,
Shiromani, Opp. Ocean Circle4, Ahmedabad
Park Satellite, Ahmedabad
Asst. Commissioner of V/S M.P. Patel Infrastructure
Income Tax (OSD)-I, Pvt. Ltd. D/415, Shiromani,
Circle4, Ahmedabad Opp. Ocean Park Satellite,
Ahmedabad
(Appellant) (Respondent)
PAN: AAGCM2205G
Appellant by : Shri M.J. Shah, AR
Respondent by : Shri Antony Pariath, Sr. D.R.
(आदे श)/ORDER
Date of hearing : 24 -03-2017
Date of Pronouncement : 03-04-2017
PER N.K. BILLAIYA, ACCOUNTANT MEMBER
2 ITA Nos. 2328 & 2782/Ahd/2013
. A.Ys. 2009-10 & 2007-08.
1. ITA No. 2328 & 2782/Ahd/2013 are appeals by the Revenue and the Assessee preferred against the order of the Ld. CIT(A)-VIII, Ahmedabad dated 26.08.2013 pertaining to A.Ys. 2007-08 & 2009-10 respectively.
2. As both these appeals have common facts, therefore, they were heard together and are disposed of by this common order for the sake of convenience.
3. In the impugned appeals, the only grievance relates to the levy of penalty u/s. 271(1)(c) of the act.
4. The facts of the case are that the assessee is engaged in the business of solid waste management and infrastructure creators. In its return of income, the assessee had claimed deduction u/s. 80IA(4) which is available on contract income.
5. Subsequently, by the Finance Act, 2009 an explanation was added below Section 80IA(13) of the Act giving a retrospective effect from 01.04.2000/- by which the income derived by work contract was not eligible for deduction u/s. 80IA(4) of the Act.
6. Since, the return of income for the impugned assessment years were already filed by the assessee claiming deduction u/s. 80IA(4), after the amendment with retrospective effect as mentioned above, the assessee 3 ITA Nos. 2328 & 2782/Ahd/2013 . A.Ys. 2009-10 & 2007-08.
withdrew its claim of deduction u/s. 80IA(4). The A.O. levied penalty u/s. 271(1)(c) of the Act on false claim made by the assessee.
7. In our considered opinion, when the return of income were filed for the impugned assessment years, the assessee was entitled for the claim of deduction u/s. 80IA(4). No person can foresee the future amendments which may be brought in the Act by the legislature. Therefore, the assessee could not foresee the future amendment and claimed the deduction accordingly. However, we find that post amendment the assessee immediately withdrew the claim of deduction made u/s. 80IA(4) of the Act. Therefore, on given facts and circumstances, we do not find these to be fit cases for the levy of penalty u/s. 271(1)(c) of the Act. We, accordingly, dismiss Revenue's appeal in ITA No. 2782/Ahd2013 and allow Assessee's appeal in ITA No. 2328/Ahd/2013.
Order pronounced in Open Court on 03 - 04- 2017
Sd/- Sd/-
(RAJPAL YADAV) (N. K. BILLAIYA)
JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER
Ahmedabad: Dated 03/04/2017
Rajesh
Copy of the Order forwarded to:-
1. The Appellant.
2. The Respondent.
3. The CIT (Appeals) -
4. The CIT concerned.
5. The DR., ITAT, Ahmedabad.
6. Guard File.
By ORDER
Deputy/Asstt.Registrar
ITAT,Ahmedabad