Income Tax Appellate Tribunal - Ahmedabad
The Dcit, Circle-2(1)(2), Ahmedabad vs Magic Share Traders Ltd., Ahmedabad on 12 February, 2021
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ 'A' अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD (Convened through Virtual Court) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 2122/Ahd/2018 ( नधा रण वष / Assessment Year : 2012-13) The Deputy बनाम/ Magic Share Traders Commissioner of Income Vs. Ltd. Tax 101, Akashganga, Gujarat Circle -2(1)(2), College Road, Ellisbridge, Ahmedabad Ahmedabad - 380006 1 s t Floor, Navjivan Trust Bldg., Off. Ashram Road, Ahmedabad थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAECM9542L (अपीलाथ /Appellant) .. ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri S. S. Shukla, Sr.D.R. यथ क ओर से / Written Submission Respondent by :
सन ु वाई क तार ख / Date of 11/02/2021 Hearing घोषणा क तार ख /Date of 12/02/2021 Pronouncement आदे श/O R D E R PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-2, Ahmedabad ('CIT(A)' in short), dated 03.07.2018 arising in the penalty order dated 26.03.2017 passed by the Assessing Officer I T A N o . 2 1 2 2 / Ah d / 1 8 ( D C I T v s . M a g i c S h a r e s T r a d e r s L t d . ) A. Y . 2 0 1 2 - 1 3 - 2 -
(AO) u/s. 271(1)(c) of the Income Tax Act, 1961; (the Act) concerning assessment year 2012-13.
2. The Revenue by way of its grounds of appeal has challenged the action of the CIT(A) in deleting the penalty of Rs.1,28,54,907/- under s. 271(1)(c) of the Act.
3. When the matter was called for hearing, as per assessee's written submission, it is noticed that the quantum additions/disallowances giving rise to the imposition of penalty in appeal has been reversed by the co-ordinate bench of Tribunal in ITA No. 770/Ahd/2016, order dated 31.10.2018 in the quantum proceedings.
4. In view of the fact that the quantum additions/disallowances itself do not survive and ceased to exist having regard to the appellate order of the ITAT in quantum proceedings, the very basis for imposition of penalty under s. 271(1)(c) does not survive any more. Therefore, we see no error in the appellate order passed by CIT(A) whereby the penalty imposed under s.271(1)(c) of the Act by AO was deleted.
5. In the result, the appeal of the Revenue is dismissed.
This Order pronounced on 12/02/2021
Sd/- Sd/-
(RAJPAL YADAV) (PRADIP KUMAR KEDIA)
VICE PRESIDENT ACCOUNTANT MEMBER
Ah med ab ad : Da ted 1 2 /0 2 /2 0 2 1 True Copy S. K. SINHA आदे श क त!ल"प अ#े"षत / Copy of Order Forwarded to:-
1. राज व / Revenue
2. आवेदक / Assessee I T A N o . 2 1 2 2 / Ah d / 1 8 ( D C I T v s . M a g i c S h a r e s T r a d e r s L t d . ) A. Y . 2 0 1 2 - 1 3 - 3 -
3. संबं*धत आयकर आय, ु त / Concerned CIT
4. आयकर आयु,त- अपील / CIT (A)
5. 0वभागीय 3त3न*ध, आयकर अपील य अ*धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड9 फाइल / Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपील य अ*धकरण, अहमदाबाद ।