The ACIT, Mehsana Circle,, Mehsana v. B.Patel Infrastructure Pvt. Ltd.,, Visnagar

ITA 984/AHD/2008 | 2004-2005
Pronouncement Date: 31-05-2010 | Result: Dismissed

Appeal Details

RSA Number 98420514 RSA 2008
Assessee PAN AAACB8590K
Bench Ahmedabad
Appeal Number ITA 984/AHD/2008
Duration Of Justice 2 year(s) 2 month(s) 16 day(s)
Appellant The ACIT, Mehsana Circle,, Mehsana
Respondent B.Patel Infrastructure Pvt. Ltd.,, Visnagar
Appeal Type Income Tax Appeal
Pronouncement Date 31-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 31-05-2010
Date Of Final Hearing 26-05-2010
Next Hearing Date 26-05-2010
Assessment Year 2004-2005
Appeal Filed On 14-03-2008
Judgment Text
ITA.NO.984-08 A.Y.04-05 B. PATEL INFRASTRUCTURE P. LTD. 1 IN THE INCOME_TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD BEFORE SHRI MUKUL SHRAVAT AND SHRI N.S. SAINI ITA. NO. 984/AHD/2008 (ASSESSMENT YEAR:2004-05) ASSISTANT COMMISSIONER OF INCOME TAX MEHSANA CIRCLE MEHSANA. VS B.PATEL INFRASTRUCTURE PVT. LTD. SARDAR SOCIETY VISNAGAR DIST. MEHSANA. (APPELLANT) (RESPONDENT) PAN: AAACB 8590 K APPELLANT BY : SHRI M.C. PANDIT SR.D.R. RESPONDENT BY : SHRI K.I. THAKKAR. ( (( ( )/ )/)/ )/ ORDER PER SHRI MUKUL SHRAVAT. THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHIC H HAS EMANATED FROM THE ORDER OF LD. C.I.T.(A) GANDHINAGAR DATED 30-12 -2007 AND THE ONLY GRIEVANCE IS ABOUT THE DELETION OF PENALTY OF RS.2 21 250/- L EVIED U/S. 271(1)(C ) OF THE I.T. ACT. 2. WHILE PERUSING THE CORRESPONDING PENALTY ORDER U/S. 271(1) (C) DATED 26-7-2007 IT WAS NOTICED THAT THE PENALTY WAS IN ITIATED IN RESPECT OF THE DISALLOWANCE OF RS.6 LACS BY INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT. WHEN THE QUESTION OF JUSTIFICATI ON OF LEVY OF PENALTY ABOUT THIS CONTENTIOUS ISSUE OF DISALLOWANCE U/S.1 4A WAS RAISED BEFORE THE FIRST APPELLATE AUTHORITY IT WAS HE LD AS UNDER :- IN SUCH A SITUATION THEREFORE IT CAN BE SAFELY A SSUMED THAT WHEN THE APPELLANT FILED THE RETURN OF INCOME FOR THE YEAR U NDER CONSIDERATION THERE WAS A DIFFERENCE OF OPINION AMONG THE VARIOUS AUTHO RITIES AND APPELLANT HAD NOT ACCEPTED THE PART OF THE INTEREST EXPENSES AS BEING DISALLOWABLE U/S. 14A. IN SUCH SITUATION IT CANNOT BE SAID THAT WHATEVER WAS DISCLOSED ITA.NO.984-08 A.Y.04-05 B. PATEL INFRASTRUCTURE P. LTD. 2 BY HIM IN THE RETURN OF INCOME OR BEFORE THE ASSESS ING OFFICER THERE WAS ANY INACCURACY OR ANY HOLDING BACK OF INFORMATION O R ANY INACCURATE CLAIM OF DEDUCTION. THE CASE FOR HIS NOT PROVIDING THE CO MPLETE PARTICULARS WOULD ARISE ONLY IF SUCH A CONDUCT HAD TAKEN PLACE AFTER HE HAD ACCEPTED THE DECISION OF ITAT. THEREFORE CONSIDERING ALL THE FACTS AS FAR AS THI S YEAR IS CONCERNED IT IS DIFFICULT TO SAY THAT ASSESSEE HAS PROVIDED INACCUR ATE PARTICULARS OF INCOME TO THE ASSESSING OFFICER WHICH HAS LED TO CONCEALME NT AND THEREFORE PENALTY U/S.271(1) (C ) IS NOT ATTRACTED. 3. FROM THE SIDE OF THE REVENUE SHRI M.C. PANDIT AP PEARED WHO HAS PLACED RELIANCE ON THE PENALTY ORDER. FROM THE SIDE OF THE RESPONDENT ASSESSEE SHRI K.I. THAKKAR APPEARED WHO HAS PLACED RELIANCE ON TH E ORDER OF THE LD. C.I.T.(A). 4. HAVING HEARD BOTH THE SIDES WE ARE OF THE CONSCI ENTIOUS VIEW THAT THE ISSUE OF DISALLOWANCE U/S. 14A HAS ALWAYS BEEN A SU BJECT OF CONTROVERSY IN THE PAST. RATHER THIS ISSUE HAS A CHEQUERED HISTORY. TH E REVENUE AUTHORITIES HAVE NOT DOUBTED BONAFIDES OF THE STAND TAKEN BY THE ASS ESSEE AT THE TIME WHEN THE CLAIM WAS MADE BUT DUE TO DIFFERENCE OF OPINION ARO SEN ON ACCOUNT OF CHANGE IN LAW AND FEW DECISIONS OF THE HONBLE COURTS HAVE TA KEN ADVERSE VIEW AGAINST THE ASSESSEE. IN A SITUATION WHERE THERE IS A DIFFERENC E OF OPINION AND ISSUE BEING CONTENTIOUS THE QUESTION OF LEVY OF CONCEALMENT PEN ALTY SHOULD NOT ARISE RATHER A TAXPAYER IN PENALTY MATTER MAY GET THE BENEFIT OF A MBIGUITY OF LAW. IN VIEW OF THESE REASONS WE HEREBY AFFIRM THE FINDINGS OF LD. C.I.T.(A). THIS GROUND OF THE REVENUE IS DISMISSED. IN THE RESULT APPEAL IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON 31/05/2010. SD/- SD/- (N. S. SAINI) (MUKU L SHRAVAT) ACCOUNTANT MEMBER JUDICIAL MEMBER. ITA.NO.984-08 A.Y.04-05 B. PATEL INFRASTRUCTURE P. LTD. 3 AHMEDABAD. DATED: 31/05/2010. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHMEDABAD.