Income Tax Appellate Tribunal - Agra
Premwati Singhal, Hathras vs Department Of Income Tax on 5 October, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL,
AGRA BENCH, AGRA
BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND
SHRI A.L. GEHLOT, ACCOUNTANT MEMBER
ITA No. 426/Agra/2012
Asstt. Year : 2000-01
Income-tax Officer, vs. Smt. Premwati Singhal,
Ward 3(3), Hathras. Prop. M/s. Standard Automobiles,
Agra Road, Sadabad, Hathras.
(PAN : AWJPS 9989 S)
(Appellant) (Respondent)
Appellant by : Shri K.K. Mishra, Jr. D.R.
Respondent by : Shri Navin Gargh, Advocate
Date of hearing : 05.10.2012
Date of pronouncement of order : 05.10.2012
ORDER
Per Bhavnesh Saini, J.M.:
This appeal by the Revenue is directed against the order of ld. CIT(A), Ghaziabad dated 04.06.2012 for the assessment year 2000-01 on the following grounds :
"1. The Ld. CIT(A) has erred in law & on facts by deleting the penalty u/s. 271(1)(c) of the I.T. Act, 1961 amounting to Rs.9,75,414/- imposed by AO without considering the fact that the Department has filed appeal before the Hon'ble High Court against the deletion of basic additions of Rs.6,07,000 and Rs.23,28,864/- on account of unexplained peak investment in the purchase of drafts and profit on sale of diesel respectively.
2. The Ld. CIT(A) has erred in law & on facts by deleting the penalty u/s. 271(1)(c) of the I.T. Act, 1961 amounting to Rs.9,75,414/-2 ITA No. 426/Agra/2012
imposed by AO instead of appreciating the facts mentioned by the AO in the penalty order.
2. Briefly, the facts of the case are that in the assessment order, the AO made the additions on account of unexplained peak investment in purchase of draft in a sum of Rs.6,07,000/- and on account of profit on purchase and sale of diesel in a sum of Rs.23,28,864/-. The AO found that Shri Rakesh Kumar has practically no means and was employee of assessee who was doing work for the assessee. The transaction appearing in the bank account of Shri Rakesh Kumar was treated as transactions of the assessee. On these additions, penalty was levied vide separate order. It was submitted before the ld. CIT(A) that ITAT, Agra Bench in the case of assessee in ITA No. 97/Agra/2004 vide order dated 21.11.2008 deleted both these additions on quantum. The ld. CIT(A) reproduced the order of the Tribunal in the appellate order. The ld. CIT(A) finding that the additions on which penalty was imposed have been deleted by the Tribunal on quantum appeal, no penalty could be imposed. The ld. CIT(A), accordingly, cancelled the penalty and allowed the appeal of the assessee. The ld. DR submitted that the appeal of the department is pending before the Hon'ble High Court on quantum.
3. In view of the above facts and considering the fact that the Tribunal has already deleted both the additions on merits in quantum appeal, we find that there was no justification to levy penalty against the assessee. The additions on quantum 3 ITA No. 426/Agra/2012 are the foundation for levy of penalty. Since the foundation itself has gone when the additions have been deleted by the Tribunal, the ld. CIT(A) rightly cancelled the penalty in the matter. Merely because the appeal of the department is pending on quantum before the Hon'ble High Court, is no ground to take a contrary view. There is no infirmity in the order of the ld. CIT(A) in canceling the penalty. We, therefore, do not find any merit in the departmental appeal. The same is, accordingly, dismissed.
4. In the result, the departmental appeal is dismissed.
Order pronounced in the open court on 05.10.2012.
Sd/- Sd/-
(A.L. GEHLOT) (BHAVNESH SAINI)
Accountant Member Judicial Member
*aks/-
Copy of the order forwarded to :
1. Appellant
2. Respondent
3. CIT(A), concerned By order
4. CIT, concerned
5. DR, ITAT, Agra
6. Guard file Sr. Private Secretary
True copy