Sh. Rajan Dhir, Parwanoo V. DCIT, Chandigarh

ITA 1183/CHANDI/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7894 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 21-01-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 15-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GEETINDER MANN JCIT
• Assessee Lawyers: B M MONGA; SHI ROHIT KAURA
• Keywords: Question of law; Set aside
• Section: 271(1)(c); 274

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1183/CHD/2016 ! ' / ASSESSMENT YEAR : 2008-09 SHRI RAJAN DHIR, HOUSE NO. 52, SECTOR 4, PARWANOO #$ THE D CIT, C.CIRCLE,1 CHANDIGARH % & ./PAN NO: ACVPD4864C %'/ APPELLANT )*%' /RESPONDENT +, - . /ASSESSEE BY : SHRI B.M. MONGA, ADVOCATE & SHI ROHIT KAURA, ADVOCATE - . / REVENUE BY : SMT. GEETINDER MANN, JCIT / 0 - ,1& /DATE OF HEARING : 21.01.2020 23'! - ,1& / DATE OF PRONOUNCEMENT : 08.08. 2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 02.08.2016 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-3, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS CONTESTED THE LE VY OF PENALTY IMPOSED U/S 271 (1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). ITA NO. 1183CHD-2016 SHRI RAJAN DHIR, PARWANOO 2 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ISSUES DECIDED IN THE QUANTUM ADDITIONS ON THE BASIS OF WHICH THE IMPUGNED PENALTY HAS BEEN LEVIED, HAVE BEEN ADMITTE D BY THE HON'BLE HIGH COURT IN AN APPEAL OF THE ASSESSEE AS SUBSTANT IAL QUESTION OF LAW. THE LD. COUNSEL, THEREFORE, HAS SUBMITTED THA T THE ISSUES, ON THE BASIS OF WHICH THE ADDITIONS WERE MADE, ARE DEB ATABLE ISSUES, WHEREUPON, TWO VIEWS WERE POSSIBLE. UNDER THE CIRCU MSTANCES, THE ASSESSEE CANNOT BE FAULTED WITH ON THE GROUND THAT THE ASSESSEE HAD CONCEALED HIS INCOME OR FURNISHED INACCURATE PARTIC ULARS OF INCOME. THAT THE ADMISSION OF THE APPEAL OF THE ASSESSEE ON SUBSTANTIAL QUESTION OF LAW, SHOWS THAT THE ISSUES WERE DEBATAB LE, HENCE, THE PENALTY PROCEEDINGS ARE NOT ATTRACTED IN THIS CASE. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT THE ASSESSEE IN THE CASE WANTS TO TAKE A LEGAL GROUND WHICH WAS NOT BEFORE THE LOWER AUTHOR ITIES. HE HAS SUBMITTED THAT THE SHOW CAUSE NOTICE ISSUED TO THE ASSESSEE U/S 274 OF THE ACT READ WITH SECTION 271(1)(C) OF THE ACT W AS ILLEGAL AS IT HAS NOT BEEN SPECIFIED BY THE ASSESSING OFFICER IN THE SAID NOTICE AS TO UNDER WHICH LIMB OF SECTION 271(1)(C) OF THE ACT, P ENALTY PROCEEDINGS HAVE BEEN INITIATED. THE LD. COUNSEL HA S FURTHER SUBMITTED THAT UNDER SIMILAR CIRCUMSTANCES, THE COO RDINATE BENCH OF THE TRIBUNAL IN THE CASE OF BALBIR SINGH ('HUF') V S DCIT ITA NO. 1661/CHD/2017 ORDER DATED 20.8.2019 HAS REMITTED TH E MATTER BACK TO ITA NO. 1183CHD-2016 SHRI RAJAN DHIR, PARWANOO 3 THE FILE OF THE CIT(A) TO VERIFY THE CONTENTION OF THE ASSESSEE RAISED THROUGH LEGAL ISSUES AND THEREAFTER TO ADJUDICATE T HE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER TAKING NOTICE OF THE JUDI CIAL PRONOUNCEMENTS ON THE ISSUE ALSO. THE LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT THE FILE MAY BE RESTORED TO THE CIT( A) FOR ADJUDICATION AFRESH AFTER CONSIDERING THE ABOVE CON TENTIONS RAISED BY THE ASSESSEE. 4. THE LD. DR HAS NOT OBJECTED TO THE SAME. 5. IN VIEW OF THIS, THE IMPUGNED ORDER OF THE CIT( A) IS SET ASIDE AND THE MATTER IS REMANDED BACK TO THE FILE OF THE CIT(A) TO CONSIDER THE ABOVE STATED CONTENTIONS RAISED BY THE ASSESSEE AND DECIDE THE APPEAL OF THE ASSESSEE IN ACCORDANCE WITH LAW. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. THIS APPEAL COULD NOT BE DECIDED EARLIER DUE TO NON -FUNCTIONING OF THE BENCH ON ACCOUNT OF CURFEW / LOCKDOWN IN THE WA KE OF COVID-19 PANDEMIC. ORDER PRONOUNCED ON 08.08.2020 SD/- SD/- ( . . / N.K. SAINI) ( ! ' / SANJAY GARG) #$% / VICE PRESIDENT &' / JUDICIAL MEMBER DATED : 08.08.2020 ITA NO. 1183CHD-2016 SHRI RAJAN DHIR, PARWANOO 4 .. 4-),5676', / COPY OF THE ORDER FORWARDED TO : 1. %' / THE APPELLANT 2. )*%' / THE RESPONDENT 3. / 8, / CIT 4. / 8, ( )/ THE CIT(A) 5. 69),: , 1: ! , ;<=> / DR, ITAT, CHANDIGARH 6. =?0 / GUARD FILE 4 / / BY ORDER, @ / ASSISTANT REGISTRAR