M/s Rajan Trading Pvt. Ltd., Ludhiana V. DCIT, Ludhiana

ITA 1361/CHANDI/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6830 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 13-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Assessee Lawyers: PANKAJ BHALLA
• Section: 153A; 27

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1361/CHD/2016 ASSESSMENT YEAR: 2009-10 M/S RAJAN TRADING PVT. LTD., VS. THE DCIT, CC-1, LUDHIANA LUDHIANA PAN NO. AAECR1188B & ITA NO. 1364/CHD/2016 ASSESSMENT YEAR: 2010-11 M/S S.K. TEXTILES, VS. THE DCIT, CC-1, LUDHIANA LUDHIANA PAN NO. ABQFS0455C (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PANKAJ BHALLA RESPONDENT BY : SH. RAVI SARANGAL DATE OF HEARING : 20.09.2017 DATE OF PRONOUNCEMENT : 20.09.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE ABOVE CAPTIONED APPEALS PREFERRED BY THE ASSESS EE AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX ( APPEALS), [HEREINAFTER 2 REFERRED TO AS CIT(A)], BHATINDA DATED 01.09.2016 A RE IN RELATION TO THE CONFIRMATION OF PENALTY LEVIED THE ASSESSING OFFICE R U/S 271(1)(C) OF THE ACT . 2. AT THE OUTSET, THE LD. AR OF THE ASSESSEE HAS ST ATED THAT THE LD. CIT(A) HAS DECIDED AND CONFIRMED THE PENALTY U/S 27 1(1)(C) OF THE ACT WITHOUT DECIDING THE QUANTUM APPEALS OF THE ASSESSE E IN RELATION THE QUANTUM ADDITION MADE BY THE ASSESSING OFFICER U/S 143A OF THE ACT. 3. THE LD. DR WAS ASKED TO VERIFY THESE FACTS ON TH E LAST DATE OF HEARING. TODAY, LD. DR HAS PRODUCED ON FILE THE COP Y OF THE LETTER DATED 19.09.2017 FROM CIT(A) WHEREIN THE FOLLOWING APPEAL S OF THE ABOVE REFERRED TO TWO ASSESSEES HAVE BEEN STATED TO BE PE NDING. THE RELEVANT PART OF THE SAID ORDER IS REPRODUCED BELOW:- S.NO. APPEAL NO. NAME OF THE APPELLANT ASSESSMENT YEAR STATUS 1 285/IT/CIT(A)- 1/LDH/2014-15 M/S S.K. TEXTILES, C/O PUNEET FASHION GROUP. H.NO. 471/1, ST. NO. 0, JANAKPURI, LUDHIANA 2010-11 PENDING 2 285/IT/CIT(A)- 1/LDH/2014-15 M/S RAJAN TRADING PVT LTD, C/O PUNEET FASHION GROUP, # 559/4, KALI SARAK, NEAR JALANDHAR BYE PASS, LUDHIANA 2009-10 PENDING 4. SINCE THE QUANTUM APPEALS ARE STILL PENDING BEFO RE THE LD. CIT(A), THEREFORE, HE WAS NOT JUSTIFIED IN DECIDING THE PEN ALTY APPEALS PRIOR TO 3 DECIDING THE VALIDITY OF THE ADDITIONS MADE BY THE ASSESSING OFFICER WHICH HAVE BEEN CHALLENGED BEFORE HIM IN THE AFORESAID AP PEALS. SINCE THE VERY BASIS OF LEVY OF PENALTY IS THE QUANTUM ADDITIONS M ADE IN THE ASSESSMENT PROCEEDINGS CARRIED OUT U/S 153A OF THE ACT, HENCE, BEFORE ADJUDICATION OF THE SAME, THE CONFIRMATION OF THE PENALTY WAS NOT J USTIFIED AT ALL. EVEN PERUSAL OF THE IMPUGNED ORDER OF THE CIT(A) REVEALS THAT LD. CIT(A) HAS MISTAKENLY ASSUMED THAT THE QUANTUM APPEALS HAVE AL READY BEEN DECIDED WHEREAS THE ACTUAL FACTS HAVE BEEN CONFIRMED NOW. 5. IN VIEW OF THIS, THE IMPUGNED ORDERS OF THE CIT( A) ARE SET ASIDE AND THE CAPTIONED APPEALS ARE RESTORED TO THE FILE OF T HE CIT(A) WITH A DIRECTION TO DECIDE THE QUANTUM APPEAL FIRST AND THEN TO DECI DE THE PENALTY APPEALS IN ACCORDANCE WITH LAW. 6. IN VIEW OF THIS, THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20.09.2017 SD/- SD/- (DR. B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20.09.2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR