Hindustan Live Stock Agency, New Delhi V. ACIT, Patna

ITA 142/PAT/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9629 (ITAT-PATNA)
• Duration Of Justice: 2 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 1988-1989
• Appeal Filed On: 07-08-2014
• Court: TRIBUNAL
• Department Lawyers: S C SANNIGRAHI CA SHRI
• Assessee Lawyers: T VARKEY JUDIC IA L M EMBER

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, PATNA BENCH:P ATNA BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NOS. 142 TO 145/PAT/2014 ASSESSMENT YEARS:1988-89 TO 1991-92 HINDUSTAN LIVE STOCK AGENCY, 1/158, GALI BAGICHEWALI, PUNJASHARIF, KASHMERE GATE, NEW DELHI-110 006 PAN: AFHPM0806J / V/S . ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRLE-1, PATNA /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI S. C. SANNIGRAHI, CA /BY RESPONDENT SHRI SUPRIYA BISWAS, DR /DATE OF HEARING 07-04-2017 /DATE OF PRONOUNCEMENT 12-04-2017 /O R D E R PER BENCH: ALL THESE APPEALS FILED BY THE ASSESSEE ARE ARIS ING OUT OF COMMON ORDER OF COMMISSIONER OF INCOME-TAX(APPEAL)-1, PATNA DATED 1 7-06-2014 FOR AYS 1988-89 TO 1991-92 AGAINST THE PENALTY LEVIED U/S. 271(1)(C) O F THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE POINTED OUT THAT THE NOTICE INITIATING PENALTY U/S.274 READ WITH SECTION 271 OF THE ACT IS INVALID BECAUSE THE AO HAS NOT SPECIFIED AS TO WHETHER THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTICULARS OF INCOME AND DREW OUR ATTE NTION TO THE NOTICES OF EVEN DATE I.E. ON 31.03.2000 FOR AYS 1988-89 TO 1991-92. THE LD. COU NSEL RELIED ON THE ORDER OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. SSAS EMERALD MEDADOW IN ITA NO. 380 OF 2015 DATED 23.11.2015 WHEREIN THEIR LORDSHIP S UPHELD THE DECISION OF THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN THE SAID CASE NOTICE ISSUED BY THE AO BEFORE IMPOSING PENALTY U/S. 271(1)(C) OF THE ACT W HEREIN THE AO DID NOT SPECIFY AS TO WHETHER THE ASSESSEE HAS CONCEALED THE INCOME OR HA S FURNISHED INACCURATE PARTICULARS OF HIS 2 ITA NOS. 142-145/PAT/2014 HINDUSTAN LIVE STOCK AGENCY, AYS.1988-89-1991-92 INCOME. SO, THE TRIBUNAL HELD THAT THE SAID NOTICE WITHOUT SPECIFYING THE FAULT U/S. 271(1)(C) OF THE ACT THE NOTICE IS BAD IN LAW, WHICH ORDER OF THE TRIBUNAL WAS UPHELD BY THE HONBLE KARNATAKA HIGH COURT AND LATER ON THE HONBLE SUPRE ME COURT DISMISSED THE APPEAL OF THE REVENUE IN CC NO.11485/2016 VIDE ORDER DATED 23.11. 2015. THEREFORE, ACCORDING TO THE LD. COUNSEL, SINCE THE NOTICE ITSELF IS DEFECTIVE T HE SUBSEQUENT PENALTY PROCEEDING GETS VITIATED AND SO, THE PENALTY IS INVALID IN THE EYE S OF LAW AND HAS TO BE CANCELLED. 3. ON THE OTHER HAND, THE LD. DR VEHEMENTLY SUPPORT ED THE ORDERS OF THE LOWER AUTHORITIES AND DOES NOT WANT US TO INTERFERE IN TH E ORDER OF THE LD. CIT(A). 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE AO HAS ISSUED NOTICE TO THE ASSESSEE VIDE DATED 31.03.2000 U/S. 274 READ WITH SECTION 271 OF THE ACT WITHOUT SPECIF YING AS TO WHETHER THE ASSESSEE HAS CONCEALED THE PARTICULARS OF ITS INCOME OR FURNISHE D INACCURATE PARTICULARS OF SUCH INCOME. WE FIND FORCE IN THE ARGUMENT OF THE LD. COUNSEL TH AT WITHOUT SPECIFYING THE FAULT I.E. AS TO WHETHER THE ASSESSEE HAS CONCEALED THE PARTICULARS OF ITS INCOME OR HAS FURNISHED INACCURATE PARTICULARS OF HIS INCOME THE NOTICE ITSELF IS BAD IN LAW AS HELD BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF SSAS EMERALD MEDADOW, SU PRA. THIS ORDER OF HONBLE KARNATAKA HIGH COURT HAS BEEN CHALLENGED BY THE REV ENUE UNSUCCESSFULLY BEFORE THE HONBLE SUPREME COURT AS MENTIONED ABOVE. SINCE TH IS PARTICULAR FACT I.E. THE NOTICE INITIATING PENALTY ITSELF IS BAD IN LAW, CONSEQUENT PENALTY PROCEEDING IS VITIATED AND, THEREFORE, WE ARE INCLINED TO CANCEL THE PENALTY FO R ALL THE ASSESSMENT YEARS UNDER CHALLENGE BEFORE US. 5. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED. ORDER IS PRONOUNCED IN OPEN COURT ON 12.04.2017. SD/- SD/- (WASEEM AHMED) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 12 TH APRIL, 2017 JD. SR. PS 3 ITA NOS. 142-145/PAT/2014 HINDUSTAN LIVE STOCK AGENCY, AYS.1988-89-1991-92 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT HINDUSTAN LIVE STOCK AGENCY 2. / RESPONDENT ACIT, CENTRAL CIRCLE-1 PATNA 3. ' / CONCERNED CIT 4. ' - / CIT (A) 5. # && , / DR, ITAT, PATNA 6. ( / GUARD FILE. BY ORD ER/ , ASSISTANT REGI STRAR, ITAT, PATNA,