M/s Future Tech IT Systems Pvt. Ltd., Ludhiana V. CIT(A)-3, Ludhiana

ITA 1031/CHANDI/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5799 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENAKSHI VOHRA CIT
• Keywords: Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH A, CHANDIGARH (VIRTUAL COURT) .., !' .. , # $% BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM ITA NO. 1031/CHD/2019 ASSESSMENT YEAR : 2010-11 M/S FUTURE TECH IT SYSTEMS (P) LTD. 276, MAYA NAGAR, LUDHIANA. THE COMMISSIONER OF INCOME TAX (APPEALS)-3, LUDHIANA. PAN NO: AACTB96967E APPELLANT RESPONDENT !' ASSESSEE BY : SHRI ASHWANI KUMAR, CA #!' REVENUE BY : SMT. MEENAKSHI VOHRA, ADDL.CIT $ %! & DATE OF HEARING : 27/04/2021 '()*! & DATE OF PRONOUNCEMENT : 27/04/2021 $&/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 28/05/2019 OF LD. CIT(A)-3, LUDHIANA. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL. 1. THAT ORDER LEVYING PENALTY U/S 271(1)(C) AMOUNTING TO RS. 17,00,000/- PASSED BY THE LEARNED COMMISSIONER OF INCOM E TAX (APPEALS)-3, LUDHIANA IS AGAINST LAW AND FACTS ON THE FILE INASMUCH AS NO SUCH PENALTY WAS EXIGIBLE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THAT PENALTY LEVIED AT RS. 17,00,000/- IS AGAINST LAW AND FACTS ON THE FILE INASMUCH AS THE PENALTY NOTICE WAS ISSUE FO R CONCEALMENT OF PARTICULARS OF INCOME WHEREAS PENALTY HA S BEEN LEVIED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) FOR ALLEGEDLY FURNISHING INACCURATE PARTICUL ARS OF INCOME. 2 ITA 1031/CHD/2019 M/S FUTURE TECH IT SYSTEMS (P) LTD. VS CIT(A) 2. FROM THE AFORESAID GROUNDS, IT IS GATHERED THAT THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO PENALTY IMPOSED BY THE A.O. U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO A S, THE ACT) AMOUNTING TO RS. 17,00,000/- AND SUSTAINED BY THE LD. CIT(A). 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE AT THE VERY OUTSET STATED THAT THE ASSESSMENT ORDER ON THE BASI S OF WHICH THE IMPUGNED PENALTY WAS LEVIED, HAD BEEN SET ASIDE BY THIS BENC H OF THE ITAT IN ITA NO. 543/CHD/2019 FOR THE A.Y. 2010-11 VIDE ORDER DATED 22/04/2021 IN ASSESSEES OWN CASE. COPY OF THE SAID ORDER WAS FURNISHED WHIC H IS PLACED ON RECORD. 4. THE LD. SR.DR, ALTHOUGH SUPPORTED THE ORDER OF T HE AUTHORITIES BELOW BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF TH E LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE ASSESSMENT ORDER DATED 11/03/2016 PASSED BY THE A.O . U/S 143(3) OF THE ACT WHICH WAS THE BASIS FOR LEVYING THIS PENALTY HAD BE EN QUASHED VIDE AFORESAID REFERRED TO ORDER DATED 22/04/2021 IN ITA NO. 543/C HD/2019 (SUPRA), THEREFORE, THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED PEN ALTY U/S 271(1)(C) OF THE ACT WAS LEVIED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A), IS NOT IN EXISTENCE, THEREFORE, THE IMPUGNED PENALTY LEVIED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A) DESERVES TO BE DELETED. 6. ON A SIMILAR ISSUE, THE HON'BLE APEX COURT IN TH E CASE OF K.C. BUILDERS AND ANR. VS ACIT REPORTED IN (2004) 265 ITR 562 HELD AS UNDER: WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER O N THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS N O BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO PENAL TY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. ORDINARILY, PENALTY CANNOT STAND IF THE ASSESSMENT ITSELF IS SET ASIDE. 3 ITA 1031/CHD/2019 M/S FUTURE TECH IT SYSTEMS (P) LTD. VS CIT(A) 7. IN THE PRESENT CASE, THE BASIS FOR LEVYING THE P ENALTY U/S 271(1)(C) IS NOT IN EXISTENCE, AS THE ASSESSMENT ITSELF IS SET ASIDE, W E, THEREFORE, BY FOLLOWING THE RATIO LAID DOWN BY THE HON'BLE APEX COURT IN THE AF ORESAID REFERRED TO CASE, DELETE THE IMPUGNED PENALTY U/S 271(1)(C) OF THE AC T LEVIED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A). 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 27/04/2021) SD/- SD/- .. .., (R.L. NEGI) (N.K. SAINI ) # $%/ JUDICIAL MEMBER / VICE PRESIDENT DATE: 27/04/2021 *RANJAN (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE