9911796707
TMI Blog2021 (4) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... has raised the following grounds: "1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The ld. CIT(A) failed to note that the assessee had only shifted a part of the industrial undertaking and not as whole. 3. The ld. CIT(A) failed to consider that in the case of the assessee, purchase of another land in non-urban areas can also be not treated as shifting of the industrial undertaking as provided under the Act. 4. For these grounds and any other ground including amendment of grounds that may be raised during the course of the appeal proceedings, the order of learned CIT(Appeals) may be set aside and that the Assessing Officer be restored." 2. The appeal filed by the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 271(1)(c) of the Act, the assessee preferred an appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) held that the penalty levied under section 271(1)(c) of the Act is not sustainable since the quantum addition was deleted by the ITAT vide its order in I.T.A. No. 1619/Chny/2017 dated 26.06.2018. 6. Aggrieved, the Revenue is in appeal before the Tribunal against deletion of penalty levied under section 271(1)(c) of the Act. 7. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the deletion of quantum addition vide order in I.T.A. No. 1619/Chny/2017 dated 26.06.2018 by this Tribunal, the Revenue preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54G(1) of the Act, the Tribunal took note of the business activities of the assessee and the meaning assigned to the expression 'industrial undertaking' and held that the interpretation to be given should be in such a manner that it promotes economic growth and development and it should aid an industry. Keeping the said principle in mind, the Tribunal considered the facts of the assessee's case, noted that the assessee shifted its godown storing hazardous products to a non urban area and that the activity carried on in the godown being storage and repacking, which is severable from the other activities of the industrial establishment and held that the assessee is entitled to claim exemption of capital gains as per the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Explosives Rules, 2008, a person holding licence for possession of explosives granted under these Rules shall store the explosives only in the premises specified in the licence. Thus, possession, usage and sale of explosives are strictly regulated under the provisions of the Explosives Act and the relevant Rules framed thereunder. 11. Unfortunately, the Assessing Officer did not take note of this vital factor, but was guided by the common parlance test given to an industrial undertaking. One more factor, which the Assessing Officer lost sight of, was the manner, in which, the first limb of Section 54G(1) of the Act is worded wherein the transfer of a capital asset includes machinery or plant or building or land or any rights in the buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above reasons, the Revenue has not made out any ground to interfere with the order passed by the Tribunal. 13. Accordingly, the above tax case appeal is dismissed. The substantial question of law is answered against the Revenue. No costs." 8. The ld. DR could not controvert the above decision of the Hon'ble Madras High Court. In view of the confirmation of deletion of quantum addition by the Hon'ble High Court, we are of the considered opinion that the penalty levied under section 271(1)(c) of the Act cannot survive and accordingly, the appellate order passed by the ld. CIT(A) stands sustained. Thus, the ground raised by the Revenue stands dismissed. 9. In the result, the appeal filed by the Revenue is dismissed. Order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
