Sh. Anil Handa, Ludhiana V. ITO, Ludhiana

ITA 1442/CHANDI/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68396 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-07-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 23-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1442 /CHD/2010 (ASSESSMENT YEAR : 2004-05) SH.ANIL HANDA, VS. THE INCOME TAX OFFICER, PROP.M/S NEELAM STEELS, WARD VI(1) 236, INDUSTRIAL AREA-A, LUDHIANA. LUDHIANA. PAN: AAVPH5668L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 18.07.2013 DATE OF PRONOUNCEMENT : 02.08.2013 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, LUDHIANA D ATED 06.10.2010 RELATING TO ASSESSMENT YEAR 2004-05 AGAINST THE PEN ALTY LEVIED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT). 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE RE AD AS UNDER: 1. THAT THE LD.CIT(A), LUDHIANA HAS ERRED IN CONFIRMIN G PENALTY AMOUNTING TO RS.31,29,260/- LEVIED BY THE A SSESSING OFFICER U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. 2. THAT THE PENALTY U/S 271(1)(C) HAS BEEN LEVIED AGAI NST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT WHILE CONFIRMING PENALTY SUBMISSIONS MADE BY U S ALONGWITH VARIOUS CASE LAWS HAVE NOT BEEN CONSIDERE D PROPERLY. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DIS POSED OFF. 2 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINS T THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT AMOUNTING TO RS.31,29,260/ -. 4. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE PENALTY U/S 271(1)(C) OF THE ACT IN THE PRESENT CAS E HAD BEEN LEVIED ON ACCOUNT OF TWO ISSUES. THE FIRST ISSUE WAS AGAINST THE ADDITION OF RS.74,89,650/- WHICH HAD BEEN DELETED BY THE TRIBUN AL VIDE ORDER DATED 28.2.2013. IN RESPECT OF THE SECOND ISSUE OF ADDIT ION OF RS.20 LACS IN RESPECT OF SALE OF EXPORT LICENCE, THE ISSUE HAD BE EN SET ASIDE TO THE FILE OF THE ASSESSING OFFICER AND HENCE THERE IS NO MERI T IN THE LEVY OF PENALTY ON THIS ACCOUNT ALSO. 5. THE LEARNED D.R. FOR THE REVENUE FAIRLY ADMITTED THAT THE PENALTY U/S 271(1)(C) OF THE ACT HAD BEEN LEVIED ON TWO ACC OUNTS AND THE ISSUE HAD BEEN ADJUDICATED UPON BY THE TRIBUNAL. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSING OFFICER AFTER COMPLETING THE ASSESSMENT I N THE CASE OF THE ASSESSEE UNDER SECTION 143(3) R.W.S. 147 OF THE ACT HAD MADE ADDITIONS ON ACCOUNT OF UNDERMENTIONED ISSUES: A) ADDITION OF RS.74,89,690/- BEING THE SALE NOT DE CLARED BY THE ASSESSEE; B) ADDITION OF RS.20 LACS ON ACCOUNT OF SALE OF RI CE. 7. THE QUANTUM APPEAL WAS DECIDED BY THE TRIBUNAL I N ITA NO.1005/CHD/2008 RELATING TO ASSESSMENT YEAR 2004-0 5, VIDE ORDER DATED 28.2.2013. THE TRIBUNAL HAD DELETED THE ADDITION O F RS.74,89,650/-. HOWEVER, IN RESPECT OF THE ADDITION OF RS.20 LACS, THE ISSUE HAD BEEN SET ASIDE TO THE FILE OF THE ASSESSING OFFICER TO CARRY OUT NECESSARY VERIFICATION AND THEN REDECIDE THE ISSUE. IN THE A BOVE SAID FACTS AND CIRCUMSTANCES OF THE CASE IN RESPECT OF ADDITION OF RS.74,89,650/- SINCE 3 THE SAID ADDITION HAD BEEN DELETED BY THE TRIBUNAL, THERE IS NO MERIT IN THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. 8. IN RESPECT OF THE SECOND ADDITION OF RS.20 LACS, THE ISSUE HAD BEEN SET ASIDE FOR RE-EXAMINATION OF THE ASSESSING OFFIC ER AND HENCE THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT IN THE ABOV E SAID FACTS AND CIRCUMSTANCES IS NOT SUSTAINABLE. HOWEVER, THE ASS ESSING OFFICER IS AT LIBERTY TO INITIATE PENALTY PROCEEDINGS U/S 271(1)( C) OF THE ACT, ONCE THE ISSUE RELATING TO THE ADDITION OF RS.20 LACS IS DEC IDED. IN VIEW THEREOF, WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENAL TY LEVIED U/S 271(1)(C) OF THE ACT OF RS.31,39,260/-. THE GROUNDS OF APPEA L RAISED BY THE ASSESSEE ARE THUS ALLOWED. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF AUGUST, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :_2 ND AUGUST, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH