DCIT NON CORPORATE CIRCLE 2(1), CHENNAI V. A.VINOD KUMAR REDDY, CHENNAI

ITA 1368/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5270 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 03-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ARJUN RAJ
• Assessee Lawyers: R ANITHA
• Keywords: Question of law
• Section: 271(1)(c); 260A; 27

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI . . . , ' , ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ ITA NO.1368/CHNY/2019 ( ( /ASSESSMENT YEAR: 2011-12 DEPUTY COMMISSIONER OF INCOME-TAX NON CORPORATE CIRCLE-2(1) CHENNAI-600 034 V . SHRI A.VINOD KUMAR REDDY 4 TH FLOOR, BAY WATCH APARTMENTS NO.92/93 COASTAL ROAD, BESANT NAGAR, CHENNAI-600090 [PAN: ABOPV6636N] ( + /APPELLANT) ( ,-+ /RESPONDENT) + . / APPELLANT BY : MR.N.ARJUNRAJ , CA ,-+ . /RESPONDENT BY : MS. R.ANITHA JCIT . /DATE OF HEARING : 05.11.2019 . /DATE OF PRONOUNCEMENT : 05.11.2019 / O R D E R PER RAMIT KOCHAR , ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY REVENUE AGAINST APPELL ATE ORDER DATED 01.02.2019 PASSED BY LEARNED COMMISSIONER OF INCOME -TAX (APPEALS)-2, CHENNAI (HEREINAFTER CALLED THE CIT(A)) IN ITA N O. 290/2016-17 FOR ASSESSMENT YEAR(AY) 2011-12 , THE APPELLATE PROCEED INGS HAD ARISEN BEFORE LEARNED CIT(A) OUT OF PENALTY ORDER DATED 1 3.10.2016 PASSED BY LEARNED ASSESSING OFFICER(HEREINAFTER CALLED THE A O) LEVYING PENALTY OF ` ITA NO.1368/CHNY/2019 :- 2 -: 1,60,00,000/- U/S 271(1)(C) OF THE INCOME-TAX ACT,1 961 ( HEREINAFTER CALLED THE ACT) AGAINST THE ASSESSEE. 2. AT THE OUTSET LEARNED COUNSEL FOR THE ASSESSEE S UBMITTED THAT THIS IS AN APPEAL FILED BY REVENUE AGAINST APPELLATE ORDER DATED 01.02.2019 PASSED BY LEARNED CIT(A) DELETING PENALTY OF ` 1,60,00,000/- LEVIED BY THE AO U/S 271(1)(C) OF THE 1961 ACT AGAINST THE AS SESSEE. IT IS SUBMITTED THAT WHILE DECIDING FIRST APPEAL FILED BY ASSESSEE, THE LEARNED CIT(A) IN PARA NUMBER 4 REFERRED TO AN APPELLATE OR DER DATED 17.02.2017 PASSED BY INCOME TAX APPELLATE TRIBUNAL, CHENNAI BE NCH B, CHENNAI IN ITA NO. 2657/MDS/2016 FOR IMPUGNED AY; 2011-12 DECI DING QUANTUM ADDITIONS MADE BY REVENUE IN FAVOUR OF THE ASSESSEE . THUS, IT WAS SUBMITTED THAT QUANTUM ADDITIONS ITSELF STOOD DELET ED BY APPELLATE ORDER PASSED BY THIS TRIBUNAL AND HENCE PENALTY LEVIED BY THE AO U/S 271(1)(C) W.R.T. THOSE ISSUES IN QUANTUM ADDITIONS WILL NOT S URVIVE AND LEARNED CIT(A) RIGHTLY DECIDED FIRST APPEAL FILED BY ASSESS EE BY DELETING PENALTY LEVIED BY THE AO AGAINST ASSESSEE U/S 271(1)(C). IT WAS ALSO BROUGHT TO OUR NOTICE THAT LEARNED CIT(A) ALSO TOOK NOTE OF TH E JUDGMENT DATED 06.06.2018 PASSED BY HONBLE MADRAS HIGH COURT IN T AX APPEAL CASE IN TC(A) NO. 149 OF 2018 IN ASSESSEES OWN CASE FOR IM PUGNED AY: 2011-12 HOLDING THAT NO SUBSTANTIAL QUESTION OF LAW AROSE A ND ACCORDINGLY REVENUE APPEAL STOOD DISMISSED BY HONBLE MADRAS HIGH COURT . THUS, THE LEARNED COUNSEL FOR THE ASSESSEE WOULD SUBMIT THAT THIS APP EAL FILED BY REVENUE BEFORE TRIBUNAL WITH RESPECT TO PENALTY LEVIED BY T HE AO AGAINST ASSESSEE U/S 271(1)(C) OF THE 1961 ACT HAS TO BE DISMISSED I N VIEW OF AFORESAID ITA NO.1368/CHNY/2019 :- 3 -: APPELLATE ORDERS PASSED BY TRIBUNAL AND THEREAFTER BY HONBLE MADRAS HIGH COURT , BOTH IN FAVOUR OF ASSESSEE AGAINST QUANTUM ADDITIONS. BOTH THE APPELLATE ORDERS PASSED BY THIS TRIBUNAL AS WELL BY HONBLE MADARS HIGH COURT IN AN APPEAL FILED BY REVENUE U/S 260A AGAINS T QUANTUM ADDITIONS ARE PRODUCED BEFORE THE BENCH AND ARE NOW PLACED IN FILE. THE LEARNED DR ON THE OTHER HAND SUBMITTED THAT REVENUE HAS NOT AC CEPTED THE DECISION OF HONBLE MADRAS HIGH COURT DISMISSING REVENUES A PPEAL FILED U/S 260A AGAINST QUANTUM ADDITIONS AND AN SLP IS FILED BY RE VENUE WITH HONBLE SUPREME COURT. AFTER HEARING BOTH THE PARTIES AND P ERUSING THE MATERIAL ON RECORD, WE HAVE OBSERVED THAT ADDITIONS MADE BY AO IN QUANTUM HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY T RIBUNAL AND THE APPEAL FILED BY REVENUE WITH HONBLE MADRAS HIGH COURT CHA LLENGING DECISION OF THE TRIBUNAL U/S 260A STOOD DISMISSED ON THE GROUND S THAT NO SUBSTANTIAL QUESTION OF LAW AROSE FROM THE DECISION OF THE TRIB UNAL. IT IS CLAIMED BY LEARNED DR THAT REVENUE HAS FILED AN SLP WITH HONB LE SUPREME COURT AGAINST DECISION OF HONBLE MADRAS HIGH COURT AGAIN ST QUANTUM ADDITIONS. IN OUR CONSIDERED VIEW, PRESENT APPEAL FILED BY REV ENUE AGAINST APPELLATE ORDER PASSED BY LEARNED CIT(A) DELETING THE PENALTY LEVIED BY THE AO U/S 271(1)(C) BY FOLLOWING APPELLATE DECISION IN FAVOUR OF THE ASSESSEE IN QUANTUM BY THIS TRIBUNAL AND FURTHER ALSO BY HONBL E MADRAS HIGH COURT IN ASSESSEES OWN CASE FOR IMPUGNED AY: 2011-12, IS LI ABLE TO BE DISMISSED AS ONCE QUANTUM ADDITIONS ITSELF ARE DELETED BY THI S TRIBUNAL AND THE DECISION OF THE TRIBUNAL IS UPHELD BY HONBLE MADRA S HIGH COURT BY HOLDING THAT NO SUBSTANTIAL QUESTION OF LAW AROSE FROM ORDE RS OF THE TRIBUNAL, THEN ITA NO.1368/CHNY/2019 :- 4 -: IN THAT SITUATION PENALTY LEVIED BY THE AO U/S 271( 1)(C) ON THE SAME ISSUES IN QUANTUM CANNOT BE SUSTAINED. THE LEARNED CIT(A) HAS PASSED WELL REASONED ORDER AND WE ARE NOT LIKELY TO INTERF ERE IN THE WELL REASONED ORDER PASSED BY LEARNED CIT(A) AND WE AFFIRM/UPHOLD DECISION OF LEARNED CIT(A) DELETING THE PENALTY LEVIED BY THE AO U/S 27 1(1)(C) OF THE 1961 ACT AGAINST THE ASSESSEE. THE LEANED CIT(A) RIGHTLY REL IED UPON DECISION OF HONBLE SUPREME COURT IN THE CASE OF K.C.BUILDERS V . ACIT REPORTED IN (2004) 265 ITR 562(SC) TO HOLD IN FAVOUR OF ASSESSE E BY DELETING PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE 1961 ACT . TH E REVENUE FAILS IN THIS APPEAL. WE ORDER ACCORDINGLY. 3. IN THE RESULT, THE APPEAL FILED BY REVENUE IN I TA NO. 1368/CHNY/2019 FOR AY: 2011-12 IS DISMISSED AS INDI CATED ABOVE. ORDER PRONOUNCED IN OPEN COURT ON THIS 5 TH NOVEMBER , 2019, IN CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ' ) ( RAMIT KOCHAR ) /ACCOUNTANT MEMBER /CHENNAI, 2 /DATED: 5 TH NOVEMBER, 2019. TLN . ,'3 43 /COPY TO: 1. + /APPELLANT 4. 5 /CIT 2. ,-+ /RESPONDENT 5. 3 , /DR 3. 5 ( ) /CIT(A) 6. ( /GF