M/s Universal Woollen Mills, Ludhiana V. CIT III, Ludhiana

ITA 1058/CHANDI/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0038 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 19-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1058/CHD/2013 ASSESSMENT YEAR: 2008-09 M/S UNIVERSAL WOOLLLEN MILLS, VS THE CIT-III, 242, INDUSTRIAL AREA-A, LUDHIANA. LUDHIANA. PAN: AAAFU2837F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI SUSHIL KUMAR, CIT-DR & SHRI MANJIT SINGH, DR DATE OF HEARING : 13.04.2016 DATE OF PRONOUNCEMENT : 19.04.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. LD. COMMISSIONER OF INCOME TAX-III LUDHIANA DATED 17.09.2013 FOR ASSESSMENT YEAR 2008- 09 CHALLENGING THE LEVY OF PENALTY UNDER SECTION 271(1 )(C) OF THE INCOME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT IN THIS C ASE, ASSESSMENT ORDER UNDER SECTION 143(3) OF THE ACT WA S PASSED ON 26.11.2010 AND AFTER DISCUSSION, RETURNED INCOME WAS ACCEPTED FOR THE YEAR UNDER CONSIDERATIO N. 3. THE LD. COMMISSIONER OF INCOME TAX, LUDHIANA ISSUED NOTICE UNDER SECTION 263 OF THE ACT AGAINST THIS 2 ASSESSMENT ORDER FINDING THE ASSESSMENT ORDER TO BE ERRONEOUS IN SO FAR AS PREJUDICIAL TO THE INTEREST OF REVENUE AND PROPOSED TO ENHANCE/MODIFY OR SET ASIDE THE ASSESSMENT FOR FRESH ASSESSMENT. THE LD. COMMISSIONER OF INCOME TAX-III LUDHIANA VIDE ORDER DATED 28.03.2013 FOR ASSESSMENT YEAR UNDER APPEAL 2008-09 PASSED THE ORDER UNDER SECTION 263 OF THE INCOME TAX ACT AND ENHANCED THE INCOME BY RS. 1,48,74,860/-. THE CIT-III LUDHIANA VIDE ORDER DAT ED 17.09.2013 FOR ASSESSMENT YEAR 2008-09 LEVIED THE PENALTY ON ENHANCING THE INCOME IN THE ORDER UNDER SECTION 263 OF THE ACT WHICH IS IN CHALLENGE BEFORE THE TRIBUNAL. 4. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET SUBMITTED THAT ASSESSEE FILED APPEAL AGAINST THE OR DER UNDER SECTION 263 OF THE INCOME TAX ACT DATED 28.03.2013 BEFORE ITAT CHANDIGARH BENCH IN ITA NO. 616/2013 FOR ASSESSMENT YEAR 2008-09 AND THE TRIBUN AL VIDE ORDER DATED 08.03.2016 SET ASIDE AND QUASHED T HE ORDER UNDER SECTION 263 OF THE INCOME TAX ACT DATED 28.03.2013 AND RESTORED THE ASSESSMENT ORDER DATED 26.11.2010. COPY OF THE ORDER OF THE TRIBUNAL IS P LACED ON RECORD AND SUPPLIED TO THE LD. DR ALSO. HE HAS, THEREFORE, SUBMITTED THAT SINCE QUANTUM ORDER UNDER SECTION 263 HAVE BEEN QUASHED, THEREFORE, NO PENALT Y IS LEVIABLE. 3 5. AFTER HEARING RIVAL SUBMISSIONS, WE ARE OF THE V IEW PENALTY IS NOT LEVIABLE IN THE MATTER. IN THIS CAS E, PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVI ED ON ACCOUNT OF ENHANCEMENT MADE BY CIT-III LUDHIANA IN THE PROCEEDINGS UNDER SECTION 263 OF THE INCOME TAX ACT. THE ORDER OF THE CIT-III LUDHIANA UNDER SECTIO N 263 OF THE INCOME TAX ACT HAVE BEEN SET ASIDE AND QUASH ED. RESULTANTLY, THERE IS NO ENHANCEMENT LEFT FOR CONSIDERATION SO AS TO ATTRACT THE PROVISIONS OF SE CTION 271(1)(C) OF THE ACT. SINCE THE ORDER UNDER SECTIO N 263 OF THE ACT DOES NOT SURVIVE, THEREFORE, ON THE BASI S OF THE SAME ORDER, NO PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS LEVIABLE. 6. IN VIEW OF THE ABOVE, WE SET ASIDE THE IMPUGNED ORDER AND CANCEL THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAIN I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19 TH APRIL, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD