Subhash Shankar Pakale, Ratnagiri V. Assistant Commissioner of Income-tax, Ratnagiri Circle, , Ratnagiri

CO 57/PUN/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1029 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 05-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Keywords: Reasonable cause; Validity of assessment; Block assessment; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 2982 /P U N/201 6 BLOCK PERIOD : 1998 - 99 TO 2004 - 05 ASSISTANT COMMISSIONER OF INCOME TAX, RATNAGIRI CIRCLE, RATNAGIRI ....... / APPELLANT / V/S. SUBHASH SHANKAR PAKALE, H. NO. 514, OPP. POLICE STATION, MUMBAI - GOA HIGHWAY, A/P SAWARDE, TAL. - CHIPLUN, DISTT. - RATNAGIRI PAN : AHDPP2741B / RESPONDENT . / CO NO . 57 /PUN/201 8 BLOCK PERIOD : 1998 - 99 TO 2004 - 05 SUBHASH SHANKAR PAKALE, H. NO. 514, OPP. POLICE STATION, MUMBAI - GOA HIGHWAY, A/P SAWARDE, TAL. - CHIPLUN, DISTT. - RATNAGIRI PAN : AHDPP2741B ....... / APPELLANT / V/S. ASSISTANT COMMISSIONER OF INCOME TAX, RATNAGIRI CIRCLE, RATNAGIRI / RESPONDENT ASSESSEE BY : SHRI S.N. PURANIK REVENUE BY : SHRI SUBHASH CHANDRA / DATE OF HEARING : 1 2 - 09 - 2018 / DATE OF PRONOUNCEMENT : 29 - 1 1 - 201 8 2 ITA NO .2982/PUN/2016 & CO NO.57/PUN/2018 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMI SSIONER OF INCOME TAX (APPEALS) - 2, KOLHAPUR DATED 07 - 06 - 2016 FOR THE BLOCK PERIOD 1998 - 99 TO 2004 - 05. THE REVENUE IN APPEAL HAS ASSAILED THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING PENALTY LEVIED U/S. 158BFA(2) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ). THE ASSESSEE HAS FILED CROSS OBJECTIONS (CO) AGAINST THE AFORESAID ORDER OF COMMISSIONER OF INCOME TAX (APPEALS). 2. THE APPEAL OF REVENUE IS TIME BARRED BY 122 DAYS. THE REVENUE HAS FILED APPLICATION SEEKING CONDONATION OF DELAY IN FILING OF PRESENT APPEAL. AFTER PERUSAL OF APPLICATION WE ARE SATISFIED THAT THE DELAY IN FILING OF APPEAL IS NOT INTENTIONAL OR WILLFUL BUT HAS OCCURRED DUE TO BO NAFIDE REASONS MENTIONED IN THE APPLICATION. ACCORDINGLY, THE DELAY OF 122 DAYS IN FILING OF APPEAL IS CONDONED AND THE APPEAL IS ADMITTED TO BE HEARD AND DISPOSED OF ON MERITS. 3. SHRI S.N. PURANIK APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF REVENUE IS LIABLE TO BE DISMISSED AS THE TRIBUNAL HAS DELETED THE ADDITION IN APPEAL FILED BY THE ASSESSEE IN ITA NO. 641/PN/2006 FOR BLOCK PERIOD 1998 - 99 TO 2004 - 05 DECIDED ON 13 - 05 - 2016. THE LD. AR POINTED THAT THE PENALTY U/S. 158BFA(2) HAS BEEN LEVIED IN RESPECT OF UNDISCLOSED INCOME OF RS. 37,19,502/ - . THE ASSESSEE CHALLENGED THE VALIDITY OF ASSESSMENT PROCEEDINGS IN THE BLOCK ASSESSMENT ON THE GROUND OF LIMITATION. THE TRIBUNAL VIDE ORDER DATED 13 - 05 - 2016 3 ITA NO .2982/PUN/2016 & CO NO.57/PUN/2018 ALLOWED THE APPEAL OF ASSESSEE HOLDING THE ASSESSMENT ORDER FRAMED U/S. 158BC BEING BARRED BY LIMITATION. 4. SHRI SUBHASH CHANDRA REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT THE TRIBUNAL HAS STRUCK DOWN THE VALIDITY OF BLOCK ASSESSMENT PROCEEDINGS IN THE ASSESSEE S CASE. 5. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELOW PERUSED. THE REVENUE IN APPEAL HAS ASSAILED THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE PENALTY. A PERUSAL OF IMPUGNED ORDER SHOWS THAT THE FIRST APPELLATE AUTHORITY H AS DELETED THE PENALTY BY PLACING RELIANCE ON THE DECISION OF TRIBUNAL IN ITA NO. 641/PN/2006 (SUPRA). SINCE, THE SUBSTRATUM FOR LEVY OF PENALTY HAS ERODED , THE PENALTY PROCEEDINGS WOULD NOT SURVIVE. WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER. A CCORDINGLY, THE SAME IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL BY THE REVENUE IS DISMISSED. CO NO. 57 /PUN/201 8 7 . THE ASSESSEE HAS FILED CROSS OBJECTIONS IN THE APPEAL FILED BY THE REVENUE. THE CROSS OBJECTIONS HAS BEEN FILED WITH THE DELAY OF 7 DAYS. THE ASSESSEE HAS FILED AN AFFIDAVIT CITING REASONS FOR DELAY IN FILING OF CROSS OBJECTIONS. AFTER EXAMINING THE SAME, WE ARE SATISFIED THAT THE ASSESSEE HAS BEEN ABLE TO SHOW REASONABLE CAUSE FOR DELAY IN FILING OF CROSS OBJECTIONS. THE DELAY OF 7 DAYS IN FILING OF CROSS OBJECTIONS IS CON DONED AND THE SAME IS ADMITTED TO BE HEARD AND DISPOSED OF ON MERITS. 4 ITA NO .2982/PUN/2016 & CO NO.57/PUN/2018 8. SINCE, THE APPEAL OF REVENUE HAS BEEN DISMISSED THE CROSS OBJECTIONS DOES NOT SURVIVE. ACCORDINGLY, THE SAME ARE DISMISSED AS INFRUCTUOUS. 9. TO SUM UP, THE APPEAL OF REVENUE AND CROSS OBJECTIONS BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 29 TH DAY OF NOVEMBER, 2018 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 29 TH NOVEMBER, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2 , KOLHAPUR 4. / THE CIT - II, KOLHAPUR 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE