M/s Axis Education Technologies (P) Ltd., Ludhiana V. CIT(A)-3, Ludhiana

ITA 1033/CHANDI/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4770 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-05-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCHSMC CHANDIGARH , ! BEFORE: SMT. DIVA SINGH, JM ./ ITA NO. 1032/CHD/2019 !% & '& / ASSESSMENT YEAR : 2010-11 M/S ABACUS EDUTECH (P) LTD., 276, MAYA NAGAR, LUDHIANA. (% THE COMMISSIONER OF INCOME TAX (APPEALS)-3, LUDHIANA. ) *+ ./ PAN NO: AAACQ 0843 N ), / APPELLANT -.), / RESPONDENT ./ ITA NO. 1033/CHD/2019 !% & '& / ASSESSMENT YEAR : 2010-11 M/S AXIS EDUCATION TECHNOLOGIES (P) LTD., 276, MAYA NAGAR, LUDHIANA. (% THE COMMISSIONER OF INCOME TAX (APPEALS)-3, LUDHIANA. ) *+ ./ PAN NO: AAECA 2568 G ), / APPELLANT -.), / RESPONDENT !% &/ 0 1 */ ASSESSEE BY : SHRI ASHWANI KUMAR, CA 2 0 1 */ REVENUE BY : SMT. MEENAKSHI VOHRA, ADDL.CIT 3 %4 0 +/ DATE OF HEARING : 05/05/2021 567' 0 +/ DATE OF PRONOUNCEMENT : 11/05/2021 HEARING CONDUCTED VIA WEBEX / ORDER PER: DIVA SINGH, JUDICIAL MEMBER THESE TWO APPEALS FILED BY DIFFERENT ASSESSEES AGAI NST SEPARATE ORDERS DATED 28/05/2019 OF LD. CIT(A)-3, LUDHIANA FOR THE A.Y. 2010-11ARE BEING DECIDED BY A COMMON ORDER FOR THE SAKE OF CONVENIEN CE. 2. IN BOTH THE APPEALS, THE ONLY GRIEVANCE OF THE R ESPECTIVE ASSESSEES IS THE ACTION OF THE LD. CIT(A) IN SUSTAINING THE RESPECTI VE PENALTY ORDERS PASSED BY 2 ITA 1032 & 1033/CHD/2019 M/S ABACUS EDUTECH (P) LTD. VS CIT(A) & 1 ANR. THE A.O. U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS, THE ACT). 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. 548 & 549/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. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES 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 IN THE CASE OF BOTH THE ASSESSES WHICH WERE THE VERY B ASIS FOR LEVYING PENALTY U/S 271(1)(C) HAS BEEN QUASHED VIDE THE AFORESAID COMMO N ORDER DATED 22/04/2021 IN ITA NO. 548 & 549/CHD/2019 (SUPRA), T HEREFORE, THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED PENALTIES U/S 271(1)(C) OF THE ACT WERE LEVIED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A), ARE NOT IN EXISTENCE. IN VIEW THEREOF, THE IMPUGNED PENALTIES LEVIED BY THE A.O. AND SUSTA INED BY THE LD. CIT(A) DESERVE TO BE DELETED. SUPPORT IS DRAWN FROM THE DE CISION OF THE HON'BLE APEX 3 ITA 1032 & 1033/CHD/2019 M/S ABACUS EDUTECH (P) LTD. VS CIT(A) & 1 ANR. COURT IN THE CASE OF K.C. BUILDERS AND ANR. VS ACIT REPORTED IN (2004) 265 ITR 562 WHEREIN ON A SIMILAR ISSUE THE COURT WAS PLEASED TO HOLD: 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. 6. IN THE PRESENT CASES, THE BASIS FOR LEVYING THE PENALTIES U/S 271(1)(C) ARE NOT IN EXISTENCE, AS THE ASSESSMENT ITSELF IS SET A SIDE, I, THEREFORE, BY FOLLOWING THE RATIO LAID DOWN BY THE HON'BLE APEX COURT IN THE AF ORESAID CASE, ALLOW THE APPEALS OF THE ASSESSEES BY QUASHING THE IMPUGNED P ENALTIES U/S 271(1)(C) OF THE ACT LEVIED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A). 7. IN THE RESULT, BOTH THESE APPEALS OF THE ASSESSE ES ARE ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 11/05/2021) SD/- ( ) (DIVA SINGH) / JUDICIAL MEMBER DATE: 11/05/2021 *RANJAN *8 0 -!9 :*9'/ COPY OF THE ORDER FORWARDED TO : 1. ),/ THE APPELLANT 2. -.),/ THE RESPONDENT 3. 3 ;/ CIT 4. 3 ; ()/ THE CIT(A) 5. 9> -!!% , , / DR, ITAT, CHANDIGARH 6. & @4/ GUARD FILE / BY ORDER, ASSISTANT REGISTRAR