V.S.Madasamy, CHENNAI V. ITO, Villupuram

ITA 1428/CHNY/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9148 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G JOHNSON
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1428/MDS/2015 ( )( / ASSESSMENT YEAR : 2009-10 SHRI V.S. MADASAMY, C/O SHRI S. SRIDHAR, ADVOCATE, NEW NO.14, OLD NO.82, FLAT NO.5, 1 ST AVENUE, INDIRA NAGAR, ADYAR, CHENNAI - 600 020. PAN : AADPM 1729 K V. THE INCOME TAX OFFICER, WARD I(2), VILLIPURAM. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE -.+, / 0 / RESPONDENT BY : SHRI G. JOHNSON, JCIT 1 / 2% / DATE OF HEARING : 30.05.2016 3') / 2% / DATE OF PRONOUNCEMENT : 09.06.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), PUDUCHERR Y, DATED 30.01.2015 FOR THE ASSESSMENT YEAR 2009-10, CONFIRM ING THE PENALTY LEVIED BY THE ASSESSING OFFICER UNDER SECTI ON 271(1)(C) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2 I.T.A. NO.1428/MDS/15 2. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THE ASSESSING OFFICER LEVIED PENALTY UNDER SEC TION 271(1)(C) OF THE ACT IN RESPECT OF THE EXCESS EXPENDITURE INCURR ED BY THE ASSESSEE IN PURCHASE OF PADDY. LD.COUNSEL SUBMITTE D THAT WHEN THE ISSUE OF QUANTUM ADDITION MADE BY THE ASSESSING OFFICER CAME BEFORE THIS TRIBUNAL IN I.T.A. NO.815/MDS/2013, THI S TRIBUNAL BY AN ORDER DATED 30.06.2015 REMITTED BACK THE ISSUE TO T HE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION. SINCE THE Q UANTUM ADDITION MADE BY THE ASSESSING OFFICER WAS SET ASIDE AND THE MATTER WAS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER, ACCORDING TO THE LD. COUNSEL, THE PENALTY LEVIED BY THE ASSESSING OF FICER AT THIS STAGE MAY NOT SURVIVE. 3. ON THE CONTRARY, SHRI G. JOHNSON, THE LD. DEPART MENTAL REPRESENTATIVE, SUBMITTED THAT THIS TRIBUNAL BY AN ORDER DATED 30.06.2015, REMITTED THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR RECONSIDERATION IN RESPECT OF THE EXCESS EXPEND ITURE INCURRED BY THE ASSESSEE TO THE EXTENT OF ` 12,41,714/- IN PURCHASE OF PADDY. SINCE THE QUANTUM ADDITION WAS SET ASIDE AND THE MA TTER WAS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION, 3 I.T.A. NO.1428/MDS/15 THE PENALTY PROCEEDING MAY ALSO BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION. 4. WE HAVE CONSIDERED THE SUBMISSIONS ON EITHER SID E AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, THE ASSESSING OFFICER LEVIED PENALTY UNDER SECTION 271( 1)(C) OF THE ACT IN RESPECT OF THE SO-CALLED EXCESS EXPENDITURE SAID TO BE INCURRED BY THE ASSESSEE IN PURCHASE OF PADDY TO THE EXTENT OF ` 12,41,714/-. THIS TRIBUNAL SET ASIDE THE ADDITION MADE BY THE AS SESSING OFFICER AND REMANDED THE ISSUE BACK TO HIS FILE FOR RECONSI DERATION, BY ORDER DATED 30.06.2015. THEREFORE, AS ON TODAY, THE ADDI TION MADE BY THE ASSESSING OFFICER DOES NOT EXIST. HENCE, THE PENAL TY LEVIED BY THE ASSESSING OFFICER IS NOT SUSTAINABLE. ACCORDINGLY, THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE AND PENALTY LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE ACT IS DELET ED. IT IS OPEN TO THE ASSESSING OFFICER TO INITIATE THE PENALTY PROCE EDING UNDER SECTION 271(1)(C) OF THE ACT AFTER COMPLETION OF AS SESSMENT AS PER THE DIRECTION OF THIS TRIBUNAL IN THE ORDER DATED 3 0.06.2015. 5. WITH THE ABOVE OBSERVATION, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 4 I.T.A. NO.1428/MDS/15 ORDER PRONOUNCED ON 9 TH JUNE, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 9 TH JUNE, 2016. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A), PUDUCHERRY 4. 1 92 /CIT, PUDUCHERRY 5. 7: -2 /DR 6. ( ; /GF.