Bhagwati Flour Miling Pvt.Ltd.,, ... vs Assessee

IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER आयकर अपील सं./ ./ ITA No. 2655/Ahd/2011 िनधा रण वष /Assessment Year: 2004-05 M/s Bhagwati Flour Milling V/s. DCIT, Pvt Ltd Circle-1 309, Century Market, Prem Ahmedabad Darwaja, Ahmedabad PAN : AAACB 7721 L

अपीलाथ / अपीलाथ / (Appellant) ू!यथ यथ / थ / (Respondent)

Assessee(s) by : Shri S.N. Divatia, AR Revenue by : Shri Dinesh Singh, Sr. DR.

सुनवाई क$ तार&ख/ / Dateof Hearing : 29/06/2015 घोषणा क$ तार&ख / Date of Pronouncement: 30/06/2015

आदे श/O R D E R

PER G.D. AGRAWAL, VICE PRESIDENT:

This is an appeal filed by the assessee and is directed against the order of the Ld. Commissioner of Income-tax(Appeals)-6, Ahmedabad dated 08.09.2011, pertaining to Assessment Year 2004-05.

2. The only ground raised in this appeal by the assessee is against the levy of penalty of Rs. 5, 64,641/- u/s 271(1)(c) of the Income-tax Act, which was partly sustained by the ld. CIT(A).

3. The facts of the case are that the Assessing Officer levied penalty of Rs. 5,64,641/- in respect of following three additions:-

ITA No. 2655/Ahd/2011 Bhagwati Flour Milling Pvt Ltd vs. DCIT For AY 2004-05 2

i. Suppression of production Rs.13,21,439/- ii. Interest expenses Rs. 54,367/- iii. Electric expenses Rs. 1,98,107/-

------------------

Rs.15,73,913/-

===========

4. The CIT(A) sustained the penalty in respect of addition of Rs.13,21,439/- on account of suppression of production; however, he deleted the penalty in respect of disallowance out of interest expenses and electricity expenses. The Revenue has accepted the order of the CIT(A) while the assessee is in appeal against the penalty sustained by the CIT(A) in respect of addition of Rs.13,21,439/- on account of suppression of production.

5. At the time of hearing before us, it was pointed out by the ld. Counsel that, in the quantum appeal, the ITAT deleted the addition made by the Assessing Officer on account of suppression of production amounting to Rs.13,21,439/- vide ITA No.164/Ahd/2009 - copy of order dated 13.07.2012 is placed on record. When the addition in respect of which the penalty is sustained by the CIT(A) has been deleted by the ITAT, the penalty in respect of such addition cannot survive. Accordingly, we delete the penalty in respect of addition of Rs.13,21,439/- made on account of suppression of production.

6. In the result, the assessee's appeal is allowed.

Order pronounced in the Court on 30th June, 2015 at Ahmedabad.

Sd/- Sd/-

(KUL BHARAT) (G.D. AGRAWAL) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 30/06/2015 Biju T., PS ITA No. 2655/Ahd/2011

Bhagwati Flour Milling Pvt Ltd vs. DCIT For AY 2004-05 3

षत Copy आदे श क$ ूितिल,प अमे,षत/ of the Order forwarded to :

1. अपीलाथ / The Appellant

2. ू!यथ / The Respondent.

3. संबंिधत आयकर आयु. / Concerned CIT

4. आयकर आयु.(अपील) / The CIT(A)

5. ,वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड फाईल / Guard file.

/ BY ORDER, आदे शानु सार

TRUE COPY

Dy./Asstt.Registrar) उप/सहायक पंजीकार ( उप/ अिधकरण, अहमदाबाद / आयकर अपीलीय अिधकरण, ITAT, Ahmedabad