A C I T Vs. KEVADIA TEXTILES

JUDGEMENT

(1.) FEELING aggrieved and dissatisfied with the impugned judgment and order dated 21.09.2000 passed by the learned Income Tax Appellate Tribunal, Ahmedabad [hereinafter referred to as "ITAT"] in ITA No.246/Ahd/1999 for the assessment year 199596, the Revenue has preferred the present tax appeal to consider the following substantial questions of law.

(2.) THAT the AO passed the order under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as "Act"] for the assessment year in question making certain additions with regard to the NIL in gross profit and unexplained cash credit. It appears that the assessee did not prefer the appeal against the quantum of additions. Pursuant to the assessment order, AO initiated the penalty proceedings. Various showcause notices were issued to the assessee, however, there was no response to the showcause notices issued and therefore, the AO proceeded to pass an ex parte order on the basis of the facts on record.

(3.) SHRI Sudhir Mehta, learned advocate appearing on behalf of the revenue has vehemently submitted that the impugned judgment and order passed by the learned ITAT deleting the penalty holding that if there is a loss or negative income, penalty cannot be levied under section 271(1)(c) of the Act cannot be sustained in view of the decision of the Hon'ble Supreme Court in the case of Income Tax vs. Gold Coin Health Food Pvt. Ltd, 2008 304 ITR 308. It is further submitted that as such the learned ITAT has not considered any other ground i.e. whether on merits the penalty order can be sustained or not, more particularly,when the assessee had not preferred appeal against the quantum addition. Therefore, it is requested to allow the present appeal.