Krishan Kumar Goyal, Panchkula V. DCIT, CC, Patiala

ITA 1149/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8356 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 04-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N D GUPTA
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

, , ' IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJ AY GARG, JUDICIAL MEMBER ./ ITA NO. 1149/CHD/2018 ! / ASSESSMENT YEAR : 2006-07 SH. KRISHAN KUMAR GOYAL, H.N. 996, SECTOR 4, PANCHKULA VS. '# THE DCIT, CENTRAL CIRCLE, PATIALA PAN NO. AESPK5599N $%/ APPELLANT '( ) * /ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE ) * / REVENUE BY : SH. N.D.GUPTA, SR.DR + , ) (-. /DATE OF HEARING : 08.04.2019 /0! ) (-. / DATE OF PRONOUNCEMENT : .04.2019 / ORDER PER N.K. SAINI, VICE PRESIDENT: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 01.06.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, LUDH IANA 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEA L RELATES TO THE CONFIRMATION OF PENALTY OF 1,21,221/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'TH E ACT'). 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL F OR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE ADDITION ON THE BASIS O F WHICH THE IMPUGNED PENALTY WAS LEVIED BY THE ASSESSING OFFICER AND SUS TAINED BY THE LD. CIT(A) HAS BEEN DELETED BY THIS BENCH OF THE ITAT IN ASSESSEES OWN ITA NO. 1149-CHD-2018 SHRI KRISHAN KUMAR GOYAL, PANCHKULA 2 CASE IN ITA NO. 957/CHD/2016 VIDE ORDER DATED 7.3. 2019, COPY OF THE SAID ORDER WAS FURNISHED, WHICH IS PLACED ON RECORD. 4. THE LD. SR. DR ALTHOUGH SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW BUT COULD NOT CONTROVERT THE AFORESAID CONTEN TION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE P RESENT CASE, IT IS AN ADMITTED FACT THAT THE PENALTY WAS LEVIED BY THE AS SESSING OFFICER BY CONSIDERING THE ADDITION OF 4 LACS AS CONCEALED INCOME OF THE ASSESSEE. THE SAID ADDITION WAS CHALLENGED BY THE A SSESSEE IN ITA NO. 957/CHD/2017 FOR THE ASSESSMENT YEAR 2006-07 WHEREI N VIDE ORDER DATED 7.3.2019 THE SAID ADDITION HAS BEEN DELETED B Y THIS BENCH OF THE ITAT. 6. ON A SIMILAR ISSUE, THE HON'BLE SUPREME COURT IN THE CASE OF K. C. BUILDERS & OTHERS VS ACIT (2004) 265 ITR 562 HAS HELD AS UNDER:- WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. ORDINARILY, PENALTY CANNOT STAND IF THE ASSESSMENT ITSELF IS SET ASIDE. 7. IN THE PRESENT CASE ALSO, THE ADDITION ON THE BA SIS OF WHICH THE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT WAS L EVIED BY THE ASSESSING OFFICER AND SUSTAINED BY THE LD. CIT(A) H AS BEEN ITA NO. 1149-CHD-2018 SHRI KRISHAN KUMAR GOYAL, PANCHKULA 3 DELETED, THEREFORE, THE IMPUGNED PENALTY WAS NOT LE VIABLE AND ACCORDINGLY THE SAME IS DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. (ORDER PRONOUNCED IN THE COURT ON /04/2019) SD/- SD/- . . ! (SANJAY GARG ) (N.K. SA INI) ' #/ JUDICIAL MEMBER %&' / VICE PRESIDENT DATED : . 08. 04.2019 .. 1 ) 2(34 54!( / COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. 26$% / THE RESPONDENT 3. + 7( / CIT 4. + 7( ( )/ THE CIT(A) 5. 48 2(9 , - 9 , :;<= / DR, ITAT, CHANDIGARH 6. < >, / GUARD FILE 1 + / BY ORDER, ? / ASSISTANT REGISTRAR