M/S Manjusha Medical And Research ... vs Assessee

M/s Manjusha Medical & v. Income Tax Officer-I Research Centre Faizabad Near SBI, Station Road Civil Lines, Faizabad TAN/PAN:AANFM1228L (Appellant) (Respondent)

Appellant by: Shri. M. P Mishra & Shri. Shailendra Mishra, Advocates Respondent by: Shri. Punit Kumar, D.R. Date of hearing: 02 03 2015 Date of pronouncement: 13 03 2015

ORDER

PER SUNIL KUMAR YADAV:

This appeal is preferred by the assessee against the order of the ld. CIT(A) restricting the penalty levied under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter called in short "the Act") on certain issues. For the sake of reference, the grounds raised in this appeal are extracted hereunder:-

1. Under head professional receipt for Rs.3,00,000/- is completely deleted by honorable ITAT Lucknow, so, the penalty should be deleted on this ground.

2. Under head disallowance made out of various expense for Rs.2,73,794/- and Rs.1,28,773/- are presently remanded, so, the penalty should be deleted on this ground.

3. Under head Unexplained investment in acquiring fixed asset for :-2-:

822,954 is presently remanded, so, the penalty should be deleted on this ground.

2. During the course of hearing, the ld. counsel for the assessee has filed a chart stating therein that the additions, on which penalty was levied, were either deleted or set aside to the Assessing Officer for re-adjudication. The chart placed before us is extracted hereunder for the sake of reference:-

Sl. Addition made by ITO Relief by Relief by Hon'ble ITAT Amount Order dt. 26-11-2007 Hon'ble Order Dt. 10-09-2013 finally CIT(A) (Rs.) confirmed ( Rs.) Order Dt.

18-01-2011 ( Rs.) ( Rs.)

1. Ad-hoc addition in 5,00,000 2,00,000 3,00,000 NIL Professional Receipt (P.B.Page11) (P.B. Page 3) (P.B.Page17 )

1,29,140 2. Ad-hoc disallowance 4,02,940 (P.B.Page12) Set-aside NIL regarding expenses debited in (Restored to A.O. ( Profit & loss a/c (P.B. Page 4) Rs.2,73,794)

(P.B.Page18 & 19 ) 2,72,220 Disallowed Interest & 3. Remuneration paid to 2,72,220 (P.B.Page13) Not Disputed by NIL partners Department (P.B. Page 4)

Confirmed Unexplained investment in 4. Fixed Assets 8,22,954 (P.B.Page13) Set-aside (Restored to A.O.) NIL (P.B. Page 4) (P.B.Page19 & 20)

8,52,947 Deposit in Capital A/c of 5. Partner , Dr. 8,52,947 (P.B.Page14) Revenue's Appeal NIL Manjushapandey Dismissed (P.B. Page 4) (P.B.Page20 ) :-3-:

3. The ld. counsel for the assessee has further contended that in the light of these facts, the penalty confirmed by the ld. CIT(A) is not sustainable.

4. The factual aspects were not disputed by the Revenue.

5. In the light of these facts, we are of the view that the penalty levied under section 271(1)(c) of the Act is not sustainable on any of the issue, as the additions on those issues were either deleted by the ld. CIT(A) or by the Tribunal or the issues were set aside to the Assessing Officer for re-

adjudication. We accordingly find no merit in the penalty confirmed by the ld. CIT(A). We, therefore, set aside the order of the ld. CIT(A) and delete the penalty.

6. In the result, appeal of the assessee stands allowed.

Order was pronounced in the open court on the date mentioned on the captioned page.

Sd/- Sd/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER

DATED: 13th March, 2015 JJ:0203

Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar