Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
Vide a penalty order u/s 271(1)(c) dated 27-03-2009, it was held that the assessee has concealed the income of Rs.8,16,617/- which was taxed on account of estimation of profit. The First Appellate Authority has expressed that since the addition was in respect of Gross Profit and work-inprogress was based upon certain estimation, therefore, it was not a case of concealment, hence, deleted the penalty following the judgment of Hon’ble jurisdictional High Court in the case of CIT v. J.H. Parabia (Transport) P. Ltd. (2006) 284 ITR 361 (Guj). Now, the Revenue is before us.
Citation :
Dy. Commissioner of Income-tax, Circle-1,Room No.108, Aayakar Bhavan, Majura Gate, Surat Appellant V/s. M/s Krishna Art Silk Cloth Pvt. Ltd., 261/A,GIDC, Pandesara, Surat PAN No.AABCK1458N Respondent
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD BENCH “C” AHMEDABAD
Before Shri Mukul Kumar Shrawat, Judicial Member and
Shri A Mohon Alankamony, Accountant Member
ITA No.125/Ahd2010
Assessment Year: 2004-05
Dy. Commissioner of
Income-tax, Circle-1,
Room No.108, Aayakar
Bhavan, Majura Gate, Surat
Appellant
V/s.
M/s Krishna Art Silk
Cloth Pvt. Ltd., 261/A,
GIDC, Pandesara, Surat
PAN No.AABCK1458N
Respondent
By Appellant: Shri S.P. Talati, SR-DR
By Respondent: Shri Hardik Vora, AR
Date of Hearing: 21-02-2012
Date of Pronouncement: 24-02-2012
O R D E R
PER Mukul Kumar Shrawat, Judicial Member:-
This appeal has been filed by the Revenue arising from the order of Ld. Commissioner of Income-tax (Appeals)-I, Surat dated 12-11-2009 for the assessment year 2004-05 in respect of deletion of penalty levied u/s 271(1)(c) of the I.T. Act of Rs.2,92,261/-.
2. Vide a penalty order u/s 271(1)(c) dated 27-03-2009, it was held that the assessee has concealed the income of Rs.8,16,617/- which was taxed on account of estimation of profit. The First Appellate Authority has expressed that since the addition was in respect of Gross Profit and work-inprogress was based upon certain estimation, therefore, it was not a case of concealment, hence, deleted the penalty following the judgment of Hon’ble jurisdictional High Court in the case of CIT v. J.H. Parabia (Transport) P. Ltd. (2006) 284 ITR 361 (Guj). Now, the Revenue is before us.
3. As far as impugned quantum addition is concerned the same has now been deleted by ITAT “C” bench of Ahmedabad vide ITA No.4121/Ahd/2007, A.Y. 2004-05 order dated 21-01-2011, wherein vide para-8, it was concluded that no addition was justifiable on account of estimation of net profit. In short, once the quantum addition has already been deleted therefore there was no occasion left on the part of the Revenue to contest the concealment penalty. Therefore, the deletion of concealment penalty is hereby confirmed.
4. Ground of the Revenue is dismissed.
5. In the result, appeal of the Revenue is dismissed.
Sd/- Sd/-
(A.Mohan Alankamony) (Mukul Kumar Shawart)
(Accountant Member) (Judicial Member)
24/ 02 /2012
DKP*
Copy of Order Forwarded to:-
1. Appellant
2. Respondent
3. Concerned CIT
4. CIT (A)
5. DR, ITAT, Ahmedabad
6. Guard file.
//True Copy//
By order
DR, ITAT, Ahmedabad