Income Tax Appellate Tribunal - Chandigarh
Heera Moti Agro Industries, Solan vs Dcit, Chandigarh on 18 April, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH, CHANDIGARH
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No.997/Chd/2016
(Assessment Year : 2004-05)
M/s Heera Moti Agro Industries, Vs. The D.C.I.T.,
204, HPSIIDC, Industrial Area, Central Circle -1,
Baddi, Disitt. Solan. Chandigarh.
PAN: AADFH7463B
(Appellant) (Respondent)
Appellant by : Shri Sudhir Sehgal
Respondent by : Shri Manjit Singh DR
Date of hearing : 21.02.2017
Date of Pronouncement : 18.04.2017
O R D E R
PER ANNAPURNA GUPTA, A.M. :
Thi s appeal has been fi l ed by the assessee agai nst the order of CI T( Appeal s) -3, Gurgaon dated 30.6.2016 rel ati ng to assessment year 2004-05.
2. The assessee has rai sed the fol l o wi ng grounds:
"1. That the Worthy Commissioner of Income Tax (Appeals) has erred in not allowing the appeal of the appellant and, as such, confirming penalty of Rs.14,00,000/- imposed by the Assessing Officer u/s 271(1)(c).
2. That the Worthy CIT (A) has erred in not considering that there was neither any concealment of income nor furnishing of any inaccurate particulars of income.
3. That the detailed submission filed during the course of hearing before the Assessing Officer and also before the CIT (A) has not been considered properly.2
4. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off."
3. Bri ef facts are t hat search and sei zure operation was carri ed out at the resi denti al /busi ness premi ses of Ji ndal Group of cases, Panchkul a on 15.7.2008. The premi ses bel ongi ng to the assessee group was covered u/s 132( 1) of the I ncome Ta x Act, 19 61 ( i n short 'the Act') . On perusal of the panchnama and sei zed documents of the premi ses i t was noti ced that som e documents rel a ti ng to the assessee i .e. M/s Heera Moti Agro I ndustri es were found and sei zed. Consequ entl y, noti ce u/s 153C of the Act was i ssued to the assessee and thereafter assessment framed maki ng addi ti on of Rs.6 4,950/- u/s 40( a) ( i a) of the I ncome Ta x Act,1961, on account of non deducti on of TDS on pa yment made on accou nt of gri ndi ng charges and addi ti on of Rs.37,61,892/- bei ng bal ance of sundr y credi tors added back to the i nco me of the assess ee on account of fai l ure of the assessee to fi l e confi rmati on of the same. Penal t y proceedi ngs under secti on 271( 1 ) ( c) of the Act read wi th Expl anati on 5A were al so i niti ated for both the said addi ti ons. Noti ce under secti on 271( 1) ( c) was i ssued. I n the meanwhi l e, the Ld. CI T ( Appeal s) di smi ssed the assessee's appeal i n quant um proceedi ngs on the i ssue of addi ti on made on account of sundr y credi tors. Ther eafter the Assessi ng Offi cer gave the assessee another opportuni t y, i n penal t y proceedi ngs, to fi l e its repl y whi ch was dul y submi tted and after consi deri ng whi ch the Assessi ng Offi cer re jected the contenti ons of the assessee and i mposed penal t y 3 of Rs.14 l acs. on the addi ti on sustai ned i .e. on sundr y credi tors bal ance added back of Rs. 37,61,892/-.
4. The matter was carri ed i n appeal before the CI T ( Appeal s) who di smi ssed the assessee's appeal and confi rmed the l ev y of penal t y.
5. Aggri eved by the same, the assess ee has no w come up i n appeal before us. Duri ng the course of hearing before us, the Ld. counsel for the assessee poi nted out that the Hon'bl e I . T.A. T. had del eted the addi ti on made on account of sundr y credi tors in i ts order passed in I TA No.736/Chd/2013 dated 23.8.2016. The copy of the order was pl aced befo re us. The Ld. counsel for the assessee, therefore, contended that si nce the addi ti on made had been del eted, there was no case for l ev y of any penal t y at al l .
6. We have heard both the parti e s. We have al s o gone through the order of the I . T. A. T., Chandi garh Bench i n the case of the assessee i n I TA No.736/Chd/2013 dated
23..6.2016 pl ac ed before us. The same, we fi nd, is a consol i dated order passed i n a group of cases with the l ead case bei ng M/s Mal a Bui l ders Pvt. Ltd. , wherei n the Hon'bl e I . T.A. T. had deal t wi th the i ssue whether addi ti on coul d be made to i ncome of assessee wh i ch was not bas ed on any i ncri mi nati ng materi al found duri ng the course of search i n the case of compl eted assessment. The Hon'bl e I . T.A. T. i n the sai d case hel d that i n the absence of any i ncrimi nati ng materi al found d uri ng the course of search and a ssessment 4 proceedi ngs havi ng not abated at the ti me of search, the Assessi ng Offi cer had no juri sdi cti on to make additi on u/s 153A of the A ct. The case of the assess ee in I TA No.736/Chd/2013 was one of the cases among the group i n whi ch the facts brought out showed that the addi ti on had been made i n t he absence of a ny i ncri mi nati ng materi al found duri ng the course of search. The Hon'bl e I . T.A. T., therefore, we fi nd, has del eted the addi ti on made in quantum proceedi ngs in the case of assessee vi de the aforesai d order. Si nce the addi ti on made i tsel f has been del eted, no case remai ns for l evy of penal t y. The penal t y l evi ed, therefore, i n the present case amounti ng to Rs.14 l acs i s di rected to be del eted. Th e order of the CI T ( Appeal s) i s set asi de and the appeal of the assessee i s al l owed.
7. In the resul t, the appeal of the assessee is al l o wed.
Order pronounced in the open court.
Sd/- Sd/-
(BHAVNESH SAINI) (ANNAPURNA GUPTA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 18 t h April, 2017
*Rati*
Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT
5. The DR
Assistant Registrar,
ITAT, Chandigarh
5