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The Dy.Cit., Circle-1(1) v/s Banco Products (India) Ltd


Company & Directors' Information:- BANCO PRODUCTS (INDIA) LIMITED [Active] CIN = L51100GJ1961PLC001039

Company & Directors' Information:- P P PRODUCTS PVT LTD [Active] CIN = U32305WB1991PTC051091

Company & Directors' Information:- K K PRODUCTS LIMITED [Active] CIN = U31300DL1991PLC045521

Company & Directors' Information:- K B PRODUCTS PRIVATE LIMITED [Active] CIN = U51909MH2007PTC169627

Company & Directors' Information:- K G PRODUCTS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031201

Company & Directors' Information:- S S P PRODUCTS PRIVATE LIMITED [Active] CIN = U22110WB1974PTC210201

Company & Directors' Information:- M L B PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC040990

Company & Directors' Information:- B P INDIA LIMITED [Amalgamated] CIN = U51209MH1978PLC020456

Company & Directors' Information:- M M PRODUCTS LIMITED [Strike Off] CIN = U28994DL1992PLC050955

Company & Directors' Information:- M P K PRODUCTS PVT LTD [Active] CIN = U26919AS1994PTC004183

Company & Directors' Information:- G K PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043260

Company & Directors' Information:- N R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51109AS1998PTC005561

Company & Directors' Information:- C L PRODUCTS INDIA LIMITED [Active] CIN = U51909DL2002PLC116975

Company & Directors' Information:- K. S. A. PRODUCTS PRIVATE LIMITED [Active] CIN = U51220PB2014PTC039023

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- D. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U52320DL2011PTC213508

Company & Directors' Information:- R S PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036603

Company & Directors' Information:- R R PRODUCTS PRIVATE LIMITED [Active] CIN = U24249HR1999PTC034291

Company & Directors' Information:- I G PRODUCTS PRIVATE LIMITED [Active] CIN = U74999WB2012PTC183503

Company & Directors' Information:- J S R PRODUCTS PRIVATE LIMITED [Active] CIN = U31908DL2007PTC170841

Company & Directors' Information:- C F C PRODUCTS PRIVATE LIMITED [Active] CIN = U28129DL1998PTC095531

Company & Directors' Information:- M S PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055125

Company & Directors' Information:- B R PRODUCTS PRIVATE LIMITED [Active] CIN = U31909DL1999PTC100727

Company & Directors' Information:- S P B PRODUCTS LIMITED [Active] CIN = U51909DL1996PLC082631

Company & Directors' Information:- G K D PRODUCTS PRIVATE LIMITED [Active] CIN = U15431WB1998PTC086840

Company & Directors' Information:- M B R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17111WB1993PTC060806

Company & Directors' Information:- P D PRODUCTS PRIVATE LIMITED [Active] CIN = U23201DL2000PTC108462

Company & Directors' Information:- S K M PRODUCTS PRIVATE LIMITED [Active] CIN = U18101DL1998PTC093415

Company & Directors' Information:- H R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1978PTC009183

Company & Directors' Information:- V S PRODUCTS PRIVATE LIMITED [Active] CIN = U36900DL2008PTC185445

Company & Directors' Information:- H K PRODUCTS LIMITED [Active] CIN = U51900GJ2015PLC085457

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- S R K PRODUCTS PRIVATE LIMITED [Active] CIN = U51221KA1989PTC010032

Company & Directors' Information:- G M PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC044687

Company & Directors' Information:- V T N PRODUCTS PVT LTD [Active] CIN = U51109WB1996PTC080094

Company & Directors' Information:- W S T Q PRODUCTS PRIVATE LIMITED [Active] CIN = U31300DL1999PTC102655

Company & Directors' Information:- G S T PRODUCTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U31909TN2006PTC059575

Company & Directors' Information:- S M P PRODUCTS PRIVATE LIMITED [Active] CIN = U25200DL2009PTC190965

Company & Directors' Information:- S N S PRODUCTS PRIVATE LIMITED [Active] CIN = U15490DL2005PTC142749

Company & Directors' Information:- U B PRODUCTS PRIVATE LIMITED [Active] CIN = U51224DL2002PTC116457

Company & Directors' Information:- A AND A PRODUCTS PRIVATE LIMITED [Active] CIN = U21098MP2004PTC017128

Company & Directors' Information:- V J PRODUCTS PRIVATE LIMITED [Active] CIN = U36900GJ2011PTC065252

Company & Directors' Information:- S AND A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51311DL1991PTC042938

Company & Directors' Information:- S AND G PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014843

Company & Directors' Information:- B P PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24241WB1999PTC089499

Company & Directors' Information:- D AND P PRODUCTS LIMITED [Amalgamated] CIN = U99999MH1951PTC008422

Company & Directors' Information:- S D H PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U55204KA2006PTC040734

Company & Directors' Information:- V M PRODUCTS PRIVATE LIMITED [Active] CIN = U24100DL2014PTC266679

Company & Directors' Information:- E C A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U27209TN1987PTC014022

Company & Directors' Information:- BANCO PRODUCTS (INDIA) LTD. [Strike Off] CIN = U52100GJ1901PLC000148

Company & Directors' Information:- G S PRODUCTS LIMITED [Strike Off] CIN = U25191UP1989PLC010483

Company & Directors' Information:- A R K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24231UP1978PTC004606

Company & Directors' Information:- S. M. PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17299DL1966PTC004634

Company & Directors' Information:- R. M. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U74999MH2017PTC298120

Company & Directors' Information:- BANCO PVT LTD [Active] CIN = U51909WB1955PTC022151

Company & Directors' Information:- P & Q PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL2014PTC269162

Company & Directors' Information:- H T PRODUCTS PVT LTD [Strike Off] CIN = U29266WB1981PTC033424

Company & Directors' Information:- PRODUCTS (INDIA) LTD [Strike Off] CIN = U31901WB1961PLC024991

Company & Directors' Information:- M PRODUCTS & CO PVT LTD [Strike Off] CIN = U51909WB1956PTC023215

    Misc. Application No. 147/Ahd of 2018 in ITA.No. 2871/Ahd of 2014

    Decided On, 05 October 2018

    At, Income Tax Appellate Tribunal Ahmedabad

    By, THE HONOURABLE MR. RAJPAL YADAV
    By, JUDICIAL MEMBER & PRADIP KUMAR KEDIA
    By, ACCOUNTANT MEMBER

    For the Appellant: Mudit Nagpal, Sr.DR. For the Respondent: Sanket Bakshi, AR.



Judgment Text

Rajpal Yadav, Judicial Member:

1. Present Misc. Application is directed at the instance of the Revenue pointing out apparent error in the order of the Tribunal dated 11.9.2017 passed in ITA No.2871/Ahd/2014.

2. Brief facts of the case are that the assessee has claimed weighted deduction under section 35(2AB) of the Income Tax Act at Rs.1,26,23,818/-. This deduction was disallowed to the assessee and the dispute travelled upto the Tribunal. The Tribunal in ITA No.75/Ahd/2012 vide order dated 6.4.2017 remitted this issue to the file of the AO for fresh adjudication. The AO has imposed penalty of Rs.43.00 lakhs under section 271(1)(c) of the Act. The dispute qua imposition of this penalty travelled upto the Tribunal in ITA No.2871/Ahd/2014. Since quantum addition was set aside by the Tribunal in ITA No.75/Ahd/2012, and therefore, in the penalty proceedings, the Tribunal has observed that de novo assessment is pending before the AO, and unless the quantum is decided, no penalty be imposed upon the assessee. Accordingly, appeal of the assessee was allowed for statistical purpose and issue was remitted to the file of the AO. It was left to the AO to initiate or not to initiate penalty proceedings on this issue. In the MA, it has been pleaded that the order of the Tribunal dated 11.9.2007 passed in penalty proceedings was received by the Department on 25.1.2018, by that time, the AO has already passed quantum order in pursuance of ITAT's order dated 6.4.2017 in the quantum proceedings. The AO did not initiate penalty proceedings in the de novo assessment order on the directions of the Tribunal. Under these circumstances, a prayer is being made that order dated 11.9.2017 passed in ITA No.2871/Ahd/2014 be recalled.

3. At the time of hearing of this MA, it has been brought to our notice that quantum order of the Tribunal passed in ITA no.75/Ahd/2012 was challenged by the assessee before the Hon'ble High Court vide Tax Appeal No.1057 of 2017. Hon'ble High Court has allowed the appeal of the assessee on 26.3.2018. The Hon'ble High Court has allowed weighted deduction claimed by the assessee under section 35(2AB) of the Act.

4. With the assistance of the ld.representatives, we have gone through the record carefully. The power of rectification under section 254 of the Income Tax Act can be exercised only when the mistake, which is sought to be rectified, is an obvious patent mistake, which is apparent from the record and not a mistake, which is required to be established by arguments and long drawn process of reasoning on points, on which there may conceivably be two opinions. We do not find any merit in this application of the Revenue for two reasons viz. the Tribunal has set aside penalty order on 11.9.2017. Department was represented by its authorized officer, hence, it was in the knowledge of the Department, and this information ought to be remitted to the AO. He has passed de novo assessment order on 27.12.2017 i.e. after order of the Tribunal in September, 2017. Second reason is that since addition stands deleted by the Hon'ble High Court and appeal of the Revenue will not be maintainable before the Hon'ble Supreme Court for want of tax effect, therefore, there are no chance for

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any revival of issue of penalty under section 271(1)(c) of the Act. In view of the above two circumstances, we do not find any apparent error in the order of the Tribunal, and therefore MA of the Department is dismissed. 5. In the result, Misc. Application of the Revenue is dismissed. Order pronounced in the Court on 5th October, 2018 at Ahmedabad.
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