ITO, Patiala V. Sh. Jagtar Singh Rajla, Patiala

ITA 140/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9172 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 29-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TN SHARMA
• Assessee Lawyers: S K MITTAL
• Section: 147; 148; 144

Judgement Text

INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 140 /CHD/ 2016 ASSESSMENT YEAR: 2007 - 08 INCOME TAX OFFICER, WARD - SAMANA AT PATIALA VS. SH. JAGTAT SINGH RAJLA, S/O. SH. HARDIAL SINGH RAJLA , VILL. RAJALA, TEHSIL SAMANA, DISTT. PATIALA. PAN:AZWPS6678R (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. SK MITTAL, DR REVENUE BY: SH. TN SHARMA, ADV DATE OF HEARING 04 /0 8 /2016 DATE OF PRONOUNCEMENT 11 /0 8 /2016 O R D E R PER PRASHANT MAHARISHI , A . M . 1 . THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT(A), PATIALA DATED 09.12.2015 FOR THE ASSESSMENT YEAR 2007 - 08 AGAINST CANCELLING THE PENALTY U/S 271(1)(C) OF RS. 3988710/ - VIDE ORDER DATED 27.03.2014 BY THE LD AO. THE FOLLOWING GROUNDS OF APPEAL HAVE BEEN RAISED: - 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY WITHOUT APPRECIATING THE FACTS THAT THE ASSE SEE HAS NOT FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION I.E. A.Y. 2007 - 08 DESPITE THE ISSUE OF NOTICE U/S 148 OF THE INCOME TAX ACT, 1961 AND AFTER APPEAL EFFECT TO THE ORDER OF THE HON'BLE HIGH COURT, THERE WAS TAX LIABILITY IN THE HANDS O F THE ASSESEE. 2. IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN DELETING THE PENALTY LEVIED U/S 271(L)(C) OF THE INCOME TAX ACT, 1961, BY RELYING IN THE FACTS THAT THE QUANTUM APPEAL HAS BEEN DECIDED BY THE HON'BLE JURISDICTIONAL HIGH COURT IN FAVO UR OF THE ASSESSEE. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY WITHOUT APPRECIATING THE FACT THAT THE SAID DECISION OF THE HON'BLE HIGH COURT WAS NOT ACCEPTED BY THE DEPARTMENT AND SLP IN THI S PAGE 2 OF 3 CASE HAS BEEN FILED BEFORE THE HON'BLE SUPREME COURT WHICH IS PENDING FOR ADJUDICATION. 4. IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET ASIDE AND THAT OF THE AO RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE TH E APPEAL IS HEARD AND FINALLY DISPOSED OF. 2 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSMENT U/S 144 READ WITH SECTION 147 OF THE INCOME TAX ACT WAS MADE ON 06.12.2010 AT A TOTAL INCOME OF RS. 17875000/ - WHEREIN THE WHOLE ADDITION WAS MADE ON ACCOUNT OF LONG TERM CAPITAL GAIN U/S 45 OF THE ACT. T HE ADDITION TRAVELLED UP TO THE STAGE O F HONBLE PUNJAB & HARYANA HIGH COURT, CHANDIGARH WHICH WAS PENDING AT THE TIME OF PASSING OF THE PENALTY ORDER AND THEREFORE THE LD AO LEVIED PENALTY OF RS. 3988710/ - VIDE ORDER DATED 27.03.2014. 3 . ON APPEAL BEFORE THE LD CIT(A) , HONBLE PUNJAB & HARYANA HIGH COURT DECIDED THE QUANTUM APPEAL IN FAVOUR OF THE APPELLANT HENCE PENALTY WAS DELETED. 4 . THE LD DR RELIED ON THE ORDER OF THE LD AO, WHEREAS THE LD AR SUBMITTED THAT AS THE QUANTUM ADDITION HAS BEEN DELETED THE PENALTY U/S 271( 1 )(C)CANNOT BE L EVIED. 5 . WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AS THE QUANTUM APPEAL OF THE ASSESSEE HAS BEEN DECIDED BY THE HONBLE PUNJAB AND HARYANA HIGH COURT WHEREIN THE TOTAL ADDITION MADE BY THE REVENUE HAS BEEN DELETED. THIS FACT IS NOT DISPUTED BY THE REVENUE AT THIS POINT OF TIME. IN VIEW OF THE DECISION OF THE HONBLE PUNJAB AND HARYANA HIGH COURT IN CASE OF CS ATWAL AND OTHERS VS. ITO [ 2015 ] 59 TAXMANN.COM 359 WHERE THE QUANTUM ADDITION HAS BEEN KNOCKED OFF, WE SEE NO REASON FOR LEVYING PENALTY U/ S 271(1)(C) OF THE ACT. IN VIEW OF THE ABOVE FACT WE CONFIRM THE FINDING OF THE LD CIT(A) IN DELETING THE PENALTY OF RS. 3988710/ - LEVIED U/S 271(1)(C) OF THE ACT. PAGE 3 OF 3 6 . IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 1 / 08 /2016 . - S D / - - S D / - ( BHAVNESH SAINI ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 1 / 08 / 2016 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, CHANDIGARH