Sri Som Chand Gupta, Fatehpur V. ITO, Ward-2(4), Fatehpur

ITA 100/ALLD/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8789 (ITAT-ALLAHABAD)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SB
• Assessment Year: 2005-2006
• Appeal Filed On: 24-09-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD SMC BENCH, ALLAHABAD (THROUGH VIRTUAL COURT) BEFORE SHRI.VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.100/ALLD/2020 ASSESSMENT YEAR: 2005-06 SRI SOM CHAND GUPTA, 470, DEVIGANJ, FATEHPUR, U.P. PAN-ACUPG0992R V. INCOME TAX OFFICER, WARD-2(4), FATEHPUR, U.P. (APPELLANT) (RESPONDENT) APPELLANT BY: MR. PRAVEEN GODBOLE, CA RESPONDENT BY: MR. A.K. SINGH, SR. DR DATE OF HEARING: 28.07.2021 DATE OF PRONOUNCEMENT: 30.07.2021 O R D E R PER SHRI VIJAY PAL RAO, JUDICIAL MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 30.10.2019 ARISING FROM PENALTY ORDER PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2005-06. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS. 1.THAT IN ANY VIEW OF THE MATTER PENALTY ORDER DATED 30.10.2019 PASSED U/S 271(1)(C) OF THE IT ACT BY IMPOSING A PENALTY OF RS. 4,25,725/- BY THE ASSESSING OFFICER AND HIS ACTION AS CONFIRMED BY THE COMMISSIONER OF INCOME TAX (APPEAL) BY PASSING EX-PARTE ORDER IS UNJUSTIFIED, INCORRECT AND ILLEGAL. 2. THAT IN ANY VIEW OF THE MATTER IN THE FACTS AND CIRCUMSTANCES OF THE CASE IMPOSITION OF PENALTY IS NOT CORRECT BECAUSE THE ADDITIONS MADE UNDER TWO HEADS ARE UNJUSTIFIED AND INCORRECT. 3. THAT IN ANY, VIEW OF THE MATTER ORDER PASSED U/S 271(1)(C) OF THE IT ACT IS ILLEGAL, INVALID BECAUSE NEITHER THE ASSESSEE HAS CONCEALED ANY INCOME NOR HAD ANY BAD INTENTION TO SUPPRESS THE INCOME FROM THE DEPARTMENT. 4. THAT-IN ANY VIEW OF THE MATTER THE APPELLANT RESERVES HIS RIGHT TO TAKE ANY FURTHER GROUND BEFORE HEARING OF THE APPEAL. ITA NO.100/ALLD/2020 SRI SOM CHAND GUPTA 2 2. THE LEARNED AR OF THE ASSESSEE HAS SUBMITTED THAT THE CIT(A) HAS PASSED AN EX PARTE ORDER WHILE CONFIRMING THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT. HE HAS FURTHER POINTED OUT THAT THE QUANTUM APPEAL HAS BEEN SET ASIDE BY THIS TRIBUNAL VIDE ORDER DATED 18.11.2020 IN ITA NO. 354/ALLD/2013 TO THE RECORD OF THE CIT(A) FOR FRESH ADJUDICATION THEREFORE, THE IMPUGNED ORDER OF THE CIT(A) IS LIABLE TO BE SET ASIDE AND MATTER MAY BE REMANDED TO THE RECORD OF THE CIT(A) FOR FRESH ADJUDICATION AFTER THE OUTCOME OF THE QUANTUM APPEAL. THE LEARNED DR HAS IN PRINCIPLE AGREED FOR SETTING ASIDE THE PRESENT APPEAL TO THE RECORD OF THE CIT(A) FOR FRESH ADJUDICATION AFTER THE OUTCOME OF THE QUANTUM APPEAL. 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND IN VIEW OF THE FACT THAT THE QUANTUM APPEAL HAS ALREADY BEEN SET ASIDE BY THIS TRIBUNAL TO THE RECORD OF THE CIT(A) FOR FRESH ADJUDICATION, THE LEVY OF PENALTY UNDER SECTION 271(1)(C) IS OTHERWISE NOT SUSTAINABLE SO LONG THE QUANTUM PROCEEDINGS ARE PENDING ADJUDICATION BEFORE THE CIT(A). 4. ACCORDINGLY, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE IMPUGNED OF THE CIT(A) IS SET ASIDE AND THE MATTER IS REMANDED TO THE RECORD OF THE CIT(A) FOR FRESH ADJUDICATION AS PER THE OUTCOME OF THE QUANTUM PROCEEDINGS AND AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.07.2021 THROUGH VIDEO CONFERENCING. SD/- [VIJAY PAL RAO] JUDICIAL MEMBER DATED:30/07/2021 SH COPY FORWARDED TO: 1. APPELLANT SRI SOM CHAND GUPTA 2. RESPONDENT INCOME TAX OFFICER, WARD-2(4), FATEHPUR, U.P. 3. CIT(A) , ALLAHABAD 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR