Well Plain Engineering Co., Ahmedabad vs Assessee

Before: Shri Shailendra Kr. Yadav, Judicial Member and Shri Anil Chaturvedi, Accountant Member

ITA No. 2426/Ahd/2011 Assessment Year 2007-08

M/s. Well Plain ACIT (OSD), Engineering Co. 5, Circle-10, Seema Society, St. Vs Ahmedabad-09 Xavier's road (Respondent) Navrangpura, Ahmedabad-380009 PAN: AAAFW3072A (Appellant)

Assessee by: Shri S.N. Divetia, A.R. Revenue by: Smt. Sonia Kumar, Sr.D.R.

Date of hearing : 24-04-2015 Date of pronouncement : 30-04-2015

आदे श/ORDER

PER : SHAILENDRA KR. YADAV, JUDICIAL MEMBER:-

This appeal has been filed by assessee against the order of Ld. CIT(A)-XVI, Ahmedabad dated 07th July, 2011 on following grounds:-

"1. Ld. CIT(A) has erred in law and in fact in confirming the penalty of Rs. 1,55,000/- levied u/s. 271(1)(c) on I.T.A No. 2426/Ahd/2011 A.Y. 2007-08 Page No 2 M/s. Well Plain Engineering Co. vs. ACIT addition of credit amount standing in accounts of three trade creditors of amount of Rs. 5,65,111/-

2. Your appellant prays

(i) Penalty levied u/s. 271(1)(c) of Rs. 1,55,0,00/- be deducted/dropped."

2. At the outset of hearing, Ld. AR pointed out that in quantum proceedings issue has been decided in favour by Tribunal "D" Bench in ITA No. 281/Ahd/2011 for A.Y. 2007- 08 vide para 5 of this order wherein Tribunal held as under:-

"5. Considering the facts of the case noted above it is clear that the assessee had continued to show the admitted amounts as liability in its balance sheet, therefore, the same cannot be treated as cessation of liability. We accordingly, following the order of the Tribunal in the case of Shri Nitin S. Garg (supra) set aside the orders of the authorities below and delete the addition."

2.1 This fact has not been disputed by Ld. DR. In view of this, we find that quantum addition has been deleted by Tribunal which is the basis of penalty in question. So, base of penalty does not survive at the moment. Accordingly, penalty in question is directed to be deleted.

3. As a result, appeal filed by assessee is allowed.

Order pronounced in open court on the date mentioned hereinabove at caption page 1.

Sd/- Sd/- (ANIL CHATURVEDI) (SHAILENDRA KR. YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 30/04/2015 ak I.T.A No. 2426/Ahd/2011 A.Y. 2007-08 Page No 3

M/s. Well Plain Engineering Co. vs. ACIT

आदे श क ूितिल प अमे षत / Copy of Order Forwarded to:-

1. Assessee

2. Revenue

3. Concerned CIT

4. CIT (A)

5. DR, ITAT, Ahmedabad

6. Guard file.

By order/आदे श से, उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद