Sh. Salil Gupta, Panchkula V. DCIT, CC-I, Chandigarh

ITA 1221/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4509 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-05-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 14-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Initiation of penalty proceedings
• Section: 271(1)(c)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH !'# , $ !% &' ' ( ) * + , !% BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1221/CHD/2018 / ASSESSMENT YEARS : 2009-10 SHRI SALIL GUPTA, H.NO. 338, SECTOR 6, PANCHKULA. THE D.C.I.T., CENTRAL CIRCLE-1, CHANDIGARH. ./PAN NO: AGZPG6434B /ASSESSEE BY : SHRI JASPAL SHARMA, ADV. / REVENUE BY : SHRI MANJIT SINGH, CIT DR ! /DATE OF HEARING : 15.05.2019 '#$% ! /DATE OF PRONOUNCEMENT: 31.05.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [(APPEA LS)-3, GURGAON (IN SHORT CIT(A)] DATED 30.6.2018, CONFIR MING THE LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 196 1 (HEREINAFTER REFERRED TO AS ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL: 1. THE IMPUGNED ORDER IS BOTH AGAINST FACTS AND ER RONEOUS IN LAW. 2. THE IMPUGNED ORDER IS ILLEGAL AND VOID ABINITIO AS PENALTY PROCEEDINGS INITIATED U/S 271(L)(C) VIDE NOTICE U/S 274 R.W.S. 271(L)(C) ARE BAD IN LAW AS IT DID NOT SPECIFY ANY SPECIFIC CHARGE ITA NO.1221/CHD/2018 A.Y.2009-10 2 I.E. WHETHER FOR CONCEALMENT OF INCOME OR FURNISHIN G OF INACCURATE PARTICULARS OF INCOME. 3. THE LD.CIT(APPEA!S) HAS ERRED IN HAVING CONFIRME D THE ORDER OF THE AO WHICH IS ILLEGAL AND BAD IN THE EYES OF LAW IN T HE ABSENCE OF SATISFACTION BY THE A.O. SPECIFYING THE CHARGE FOR INITIATION OF PENALTY U/S 271(L)(C). 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(APPEALS) HAS ERRED IN HAVING CONFIRMED THE PENALTY AMOUNTING TO RS.3,18,623/- U/S 271(L)(C) IMPOSED BY THE LD, ASSE SSING OFFICER. 3. TAKING UP FIRST GROUND NO.2, THE LD. COUNSEL FO R THE ASSESSEE STATED THAT IT WAS A LEGAL GROUND CHALLENG ING THE INITIATION OF PENALTY PROCEEDINGS ,IN THE ABSENCE O F SPECIFICATION OF CHARGE IN THE NOTICE ISSUED. LD.COUNSEL FOR THE ASSESSEE STATED THAT THIS GROUND HAD BEEN RAISED BEFORE THE LD.CIT(A) ,WHO HAD NOT ADJUDICATED THE SAME. OUR ATTENTION WA S DRAWN TO PARA 3(V)(B) OF THE ORDER OF THE CIT(A) ,WHEREIN T HE SUBMISSIONS MADE BY THE ASSESSEE ON THIS GROUND WERE RECORDED A S UNDER: 3.DECISIONS :- X X X (V) DURING THE APPELLATE PROCEEDINGS, THE APPELLAN T HAS SUBMITTED AS HEREUNDER: (B) THE A.O. HAS NOT RECORDED SATISFACTION SPECIFYI NG THE CHARGE FOR LEVYING PENALTY. 4. THEREAFTER OUR ATTENTION WAS DRAWN TO THE FINDI NGS OF THE LD. CIT(A) AT PARA 3 (VI) OF THE ORDER, AND IT WAS POINTED OUT THAT THE LD.CIT(A) HAD NOT DEALT WITH THE ABOVE CONTENTI ON OF THE ASSESSEE. ITA NO.1221/CHD/2018 A.Y.2009-10 3 5. THE LD. DR CONCEDED THAT THE CIT(A) HAD FAILED T O ADDRESS THIS CONTENTION RAISED BY THE ASSESSEE REGARDING SP ECIFICATION OF CHARGE IN THE NOTICE ISSUED FOR INITIATING PENALTY PROCEEDINGS. 6. IN VIEW OF THE ABOVE, SINCE THE LD.CIT(A) HAS AD MITTEDLY FAILED TO ADJUDICATE THE LEGAL GROUND RAISED BY T HE ASSESSEE VIS- -VIS THE VALIDITY OF THE INITIATION OF PENALTY PR OCEEDINGS; WE CONSIDER IT FIT TO RESTORE THE APPEAL BACK TO THE C IT(A) TO ADJUDICATE FOR THE SAME AFRESH. NEEDLESS TO ADD THA T THE ASSESSEE BE GIVEN DUE OPPORTUNITY OF HEARING. 7. IN VIEW OF THE ABOVE, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- !'# ' ( ) * + (DIVA SINGH) (ANNAPURNA GUPTA) $ !% /JUDICIAL MEMBER ,- !% /ACCOUNTANT MEMBER '' /DATED: 31 ST MAY, 2019 * * #&' ()*) / COPY OF THE ORDER FORWARDED TO : 1. + / THE APPELLANT 2. ',+ / THE RESPONDENT 3. - / CIT 4. - ( )/ THE CIT(A) 5. )./' 0 , !0 , 123/4 / DR, ITAT, CHANDIGARH 6. /35 / GUARD FILE