DCIT, Chandigarh V. M/s Multitech Towers Pvt. Ltd., Chandigarh

CO 48/CHANDI/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0345 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 18-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH SR DR
• Assessee Lawyers: N K SAINI ITP
• Section: 271(1)(c)

Judgement Text

, , ,, IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 733/CHD/2016 / ASSESSMENT YEAR : 2012-13 MULTITECH TOWERS PVT LTD., SCO 139-141,SECTOR 17-C, CHANDIGARH THE DCIT, CENTRAL CIRCLE-1, CHANDIGARH ./PAN NO: AAECM5219Q / APPELLANT /RESPONDENT C.O. NO. 48/CHD/2017 ( IN ./ ITA NO. 733/CHD/2016) / ASSESSMENT YEAR : 2012-13 THE DCIT, CENTRAL CIRCLE-1, CHANDIGARH MULTITECH TOWERS PVT LTD., SCO 139-141,SECTOR 17-C, CHANDIGARH ./PAN NO. : AAECM5219Q / APPELLANT /RESPONDENT ! ' /ASSESSEE BY : SHRI N.K. SAINI, ITP # ! ' / REVENUE BY : SH. MANJIT SINGH, SR DR $ % ! & /DATE OF HEARING : 20.11. 2018 '()* ! & / DATE OF PRONOUNCEMENT : 20.11. 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL BY THE ASSESSEE AND CORRESPOND ING CROSS OBJECTIONS (C.O.) BY THE REVENUE ARE AGAINST THE O RDER DATED 14.3.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, GURG AON [HEREINAFTER REFERRED TO AS CIT(A)]. ITA NO. -733/CHD/2016 & C.O. 48/CHD/2017 MULTITECH TOWERS PVT.LTD, CHANDIGARH 2 ITA NO. 733/CHD/2016 ASSESSEES APPEAL 2. THE ASSESSEE IN THIS CASE HAS AGITATED THE LEVY OF PENALTY U/S 271AAA OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE A CT') FOR NON-PAYMENT OF TAX BY THE DUE DATE. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAD ALREADY PAID THE TAXES BEFORE LEVY OF PENALTY IN QUESTION. THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSE SSEE BY THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ACIT VS. GEBILAL KANHAIALAL, HUF [2012] 348 ITR 561 (SC) . 4. THE LD. DR COULD NOT PRODUCE ANY DISTINGUISHING CASE LAWS. IT IS PERTINENT TO MENTION THAT IN THE CASE OF ACIT VS. GEBILAL KANHAIALAL, HUF (SUPRA) THE ISSUE WAS RELATING TO THE IMPOSITI ON OF PENALTY IN THE LIGHT OF THE CLAUSE (2) OF EXPLANATION 5 OF SECTI ON 271(1)(C) OF THE INCOME-TAX ACT, 1961, WHEREIN, THE REQUIREMENT WAS THAT THE ASSESSEE MUST PAY THE DUE TAXES AND INTEREST ON THE SURRENDERED I NCOME. THOUGH THE PENALTY LEVIED IN THE PRESENT CASE IS U/S 271AAA OF THE INCOME-TAX ACT, 1961, HOWEVER, THE ISSUE IS THE SAME THAT THE ASSES SEE MUST PAY THE TAXES AND INTEREST ON THE SURRENDERED INCOME. SINCE THE A SSESSEE BEFORE THE LEVY OF PENALTY HAS ALREADY PAID THE TAXES AND INTEREST THEREUPON, HENCE, IN THE LIGHT OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ACIT VS. GEBILAL KANHAIALAL, HUF (SUPRA), THE PENALTY LEVIED BY THE LOWER AUTHORITIES IS NOT SUSTAINABLE AND THE SAME IS ACCO RDINGLY ORDERED TO BE DELETED. C.O. NO.48/CHD/2017 BY THE REVENUE 5. NOW COMING TO THE CROSS OBJECTIONS OF THE REVENU E, IT IS FOUND THAT THE SAME IS TIME BARRED BY 385 DAYS. THE REVENUE IN THE CROSS OBJECTIONS, ITA NO. -733/CHD/2016 & C.O. 48/CHD/2017 MULTITECH TOWERS PVT.LTD, CHANDIGARH 3 HOWEVER, HAS AGITATED THE FINDINGS OF THE LD. CIT(A ) ON THE ISSUE THAT THE ASSESSEE HAS NOT DISCLOSED THE MANNER OF THE EARN ING OF THE UNDISCLOSED INCOME WHICH IS ONE OF THE REQUIREMENT OF THE PROVI SIONS OF SECTION 271AAA OF THE ACT TO ESCAPE REASONS OF THE PENALTY. 6. THE LD. COUNSEL FOR THE ASSESSEE HAS BROUGHT OUR ATTENTION TO THE CIRCULAR NO.3 / 2018 OF THE CBDT DATED 11.7.2018 PR ESCRIBING MONETARY LIMIT FOR FILING THE APPEAL, WHEREIN, IN PARA 12 OF THE CIRCULAR IT HAS ALSO BEEN CLARIFIED THAT THE AFORESAID MONETARY LIMIT WI LL ALSO APPLY TO THE CROSS OBJECTIONS U/S 253(4) OF THE ACT. IN VIEW OF THIS, SINCE ON THE MONETARY LIMIT OF THE PENALTY, EVEN IF THE REVENUE WOULD SUCCEED ON THIS ISSUE, IS BELOW T HE PRESCRIBED LIMIT, HENCE, OTHERWISE THE CROSS OBJECTIONS OF THE REVENU E ARE NOT MAINTAINABLE. IN VIEW OF THIS, THE CROSS OBJECTIO NS RAISED BY THE REVENUE ARE DISMISSED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D, WHEREAS, THE CROSS OBJECTION OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.11.2018. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 20.11.2018 .. (, ! -. /. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ 0 / CIT 4. $ 0 ( )/ THE CIT(A) 5. .12 3 , & 3 , 45627 / DR, ITAT, CHANDIGARH 6. 26 8% / GUARD FILE ITA NO. -733/CHD/2016 & C.O. 48/CHD/2017 MULTITECH TOWERS PVT.LTD, CHANDIGARH 4 (, $ / BY ORDER, 9 # / ASSISTANT REGISTRAR