SHRI GHASI RAM SHARMA, JAIPUR V. INCOME TAX OFFICER, JAIPUR

ITA 1029/JPR/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5847 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA JHA CIT DHK
• Assessee Lawyers: R N SHARMA
• Keywords: Opportunity of being heard; Tax effect; Set aside
• Section: 271(1)(c)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA , ACCOUNTANT MEMBER VK;DJ VIHY LA -@ ITA NO. 1029/JP/2017 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2006-07 GHASI RAM SHARMA, S/O- SH. NARAYAN SHARMA, VILLAGE- POST SARANGPURA, TEHSIL- SANGANER, AJMER ROAD, JAIPUR. (RAJ). C UKE VS. I.T.O., WARD 7(2), JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA-@ PAN/GIR NO.: AKAPR 2783 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI R.N. SHARMA (ADV) JKTLO DH VKSJ LS @ REVENUE BY : SHRI RAJENDRA JHA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07/08/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 08/08/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A)-3, JAIPUR DATED 17/10/2017 FOR THE A.Y. 2006-07 IN THE MATTER OF IMPOSITION OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. AT THE OUTSET, THE LD AR OF THE ASSESSEE PLACED ON RECORD THE QUANTUM ORDER PASSED BY THE LD. CIT(A) WHEREIN THE ADDITION WITH ITA 1029/JP/2017 GHASI RAM SHARMA VS ITO 2 RESPECT TO WHICH THE PENALTY HAS BEEN IMPOSED, HAD BEEN DELETED BY THE LD. CIT(A) VIDE ORDER DATED 28/03/2019. 3. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE ADDITION OF RS. 21,00,634/- WAS MADE ON ACCOUNT OF LONG TERM CAPITAL GAIN. IN THE FIRST ROUND OF APPEAL, THE TRIBUNAL HAVE RESTORED BACK THE MATTER TO THE FILE OF THE LD. CIT(A) FOR DECIDING AFRESH ON MERITS BY PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE RESPECTIVE ASSESSEES. I FOUND THAT AFTER THE MATTER WAS SET ASIDE BY THE TRIBUNAL, THE LD. CIT(A) VIDE ITS ORDER DATED 28/3/2019 DELETED THE SAID ADDITION OF RS. 20,53,775/- AFTER HAVING A DETAILED OBSERVATION AT PARA 7.2 OF HIS ORDER. HOWEVER, NO APPEAL WAS FILED BY THE DEPARTMENT AGAINST THE SAID ORDER OF THE LD. CIT(A) IN QUANTUM APPEAL. THE LD DR WAS SPECIFICALLY ASKED BY THE BENCH TO TELL IF ANY APPEAL HAS BEEN FILED BY THE DEPARTMENT AGAINST THE SAID ORDER OF THE LD. CIT(A). THE LD DR CONTENDED THAT NO SUCH APPEAL WAS FILED IN SO FAR AS TAX EFFECT WAS BELOW THE LIMIT PRESCRIBED BY THE CDBT IN CIRCULAR NO.3 OF 2018 DATED 11 TH JULY, 2018. SINCE THE ADDITION ITSELF HAS BEEN DELETED, THE PENALTY IMPOSED WITH RESPECT TO SAID ADDITIONS HAVE NO LEGS TO STAND. ACCORDINGLY, I DIRECT THE A.O. TO DELETE THE PENALTY SO IMPOSED U/S 271(1)(C) OF THE ACT. ITA 1029/JP/2017 GHASI RAM SHARMA VS ITO 3 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH AUGUST, 2019 SD/- JES'K LH 'KEKZ ( RAMESH C SHARMA ) YS[KK LNL; @ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 08 TH AUGUST, 2019 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI GHASI RAM SHARMA, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD 7(2), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1029/JP/2017) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR