Income Tax Appellate Tribunal - Ahmedabad
Hindustan Earth Movers Pvt.Ltd.,, ... vs Department Of Income Tax on 28 November, 2007
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD
AHMEDABAD "C" BENCH
(BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND
T.K. SHARMA, JUDICIAL MEMBER)
ITA.No.534, 535, 536/Ahd/2008
[Asstt. Years: 2001-2002, 2002-2003, 2004-2005]
And
ITA No.806/Ahd/2008
[Asstt.Year : 2001-2002
ACIT, Cir.5 Vs. M/s.Hindsthan Earth Movers pvt. Ltd.
Baroda. "Ashwamegh-II", Samrajya Complex
Akota, Baroda.
(Appellant) (Respondent)
Revenue by : Shri K.M. Mahesh
Assessee by : Shri P.M.Mehta
ORDER
PER G.D. AGRAWAL, VICE-PRESIDENT: These are four appeals by the Revenue against respective orders of the Commissioner of Income-Tax (Appeals)-V, Baroda dated 28.11.2007. Since assessee being same and common issues are raised, all these appeals are disposed of by this common order for the sake of convenience.
2. In all these appeals, common ground raised is against the cancellation of penalty under Section 271(1)(c) of the Income Tax Act, 1961.
3. At the time of hearing before us, it was pointed by the learned counsel that the penalty was levied by the AO on account of addition made by him to the long term capital gain disclosed by the assessee. That the assessee has worked out the long term capital gain by taking fair market value of the land as on 1-4-1981 at the rate of Rs.23/- per sq.ft. as per registered valuer's report. That the AO did not accept the value of the land as on 1-4-81 as disclosed by the assessee and adopted the cost at the rate of Rs.10/- per sq.ft. on the basis of ITA.No.534, 535, 536/Ahd/2008 DVO's report. Accordingly, the additions were made to the income from long term capital gain disclosed by the assessee. That on appeal, the ITAT vide order dated 6-11-2009 for A.Y.2001-02, 2002-03 in ITA No.1744/Ahd/2005 and in 2694/Ahd/2005 deleted the addition. The above order was followed for A.Y.2000-2001 and 2004-05 vide ITA No.1333 and 134/Ahd/2009. Thus in all the four years, the addition to the long term capital gain stood deleted after the order of the ITAT. Thus, when the addition itself is deleted, the penalty under Section 271(1)(c) does not survive. Copy of the order of the ITAT in the quantum appeal is produced before us.
4. After carefully considering the arguments of both the sides and the facts of the case, we find that the addition in respect of which penalty under Section 271(1)(c) was levied has already been deleted. Once the addition has been deleted, the penalty based upon such addition cannot be survived. We therefore find no merit in the appeals of the Revenue, the same are dismissed.
5. In the result, the Revenue's appeals are dismissed.
Order pronounced in Open Court on 22nd July, 2010.
Sd/- Sd/-
(T.K. SHARMA) (G.D. AGARWAL)
JUDICIAL MEMBER VICE-PRESIDENT
Place : Ahmedabad
Date : 22-07-2010
Vk* Copy of the order forwarded to:
1) : Appellant
2) : Respondent
3) : CIT(A)
4) : CIT concerned
5) : DR, ITAT.
BY ORDER
DR/AR, ITAT, AHMEDABAD
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