M/s. Krishnamurthy B Narayanan, Bangalore V. Income Tax Officer, Ward- 2(2)(3), Bangalore

ITA 1529/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2223 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 24-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: C RAMESH
• Keywords: Set aside
• Section: 271(1)(c); 143(3); 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: BENGALURU BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER I.T.A NO.1529/BANG/2019 (ASSESSMENT YEAR: 2008-09) SHRI KRISHNAMURTHY B NARAYANAN, NO.19, S.P. EXTENSION 12 TH CROSS, 9 TH MAIN, MALLESWARAM, BANGALORE 560 003. [PAN: ABAPN 0767G] VS. THE INCOME TAX OFFICER, WARD-2(2)(3), BANGALORE. ( /APPELLANT ) ( /RESPONDENT ) / ASSESSEE BY : SHRI C. RAMESH, C.A. / RESPONDENT BY : SMT. R. PREMI, JCIT / DATE OF HEARING : 26.11.2019 /DATE OF PRONOUNCEMENT : 29.11.2019 O R D E R PER D.S. SUNDER SINGH, A.M. : THIS APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, BENG ALURU IN ITA NO.11/CIT(A)-2/18-19 DATED 07/05/2019 FOR THE ASSES SMENT YEAR 2008-09. 2. GROUNDS NO.1 & 2 ARE WITH REGARD TO THE VALIDITY OF LEVY OF PENALTY IN THE LIGHT OF THE DECISION OF HONBLE JUR ISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. MANJUNATHA COTTON AND GINNING FACTORY [2013] 359 ITR 565 (KAR HC) DUE TO THE DE FECT IN THE ITA NO.1529/BANG/2019 :- 2 -: NOTICE ISSUED U/S 274 R.W.S 271 OF THE ACT. GROUND S NO.3 & 4 ARE ON THE MERITS OF THE CASE ON LEVY OF PENALTY U/S. 2 71(1)(C) OF THE INCOME TAX ACT, 1961 (HEREAFTER REFERRED AS THE AC T). DURING THE APPEAL HEARING, THE LD. AR MAINLY STRESSED HIS ARGU MENTS ON GROUND NOS.3 & 4 AND RELIED ON GROUND NOS. 1 & 2. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 2,54 ,440/- ON 29.09.2008. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT BY AN ORDER DATED 30.11.2010 ON TOTAL INCOME OF RS. 9,17,914/-. DURING THE COURSE OF ASSESSMENT, THE ASSESSING OFFICER (AO) MA DE THE ADDITION OF RS. 6,63,504/- REPRESENTING THE DIFFERE NCE IN LEDGER BALANCES AND INITIATED PENALTY PROCEEDINGS U/S. 271 (1)(C) OF THE ACT. SUBSEQUENTLY, THE AO COMPLETED THE PENALTY PR OCEEDINGS BY AN ORDER DATED 28.03.2018 AND LEVIED THE PENALTY OF RS. 1,99,050/- REPRESENTING THE ADDITION MADE IN RESPEC T OF LEDGER BALANCES. AGAINST THE ASSESSMENT ORDER, THE ASSESS EE WENT ON APPEAL AND THE ISSUE TRAVELLED TO THE ITAT. THE HO NBLE ITAT IN ITS ORDER DATED 08.06.2018 IN ITA NO.1318/BANG/2018 DEL ETED THE ADDITION MADE BY THE AO AND ALLOWED THE APPEAL OF T HE ASSESSEE. 4. AGAINST THE ORDER OF THE AO IMPOSING THE PENALTY U/S 271(1)(C) OF THE ACT, THE ASSESSEE PREFERRED APPEAL AND THE LD ITA NO.1529/BANG/2019 :- 3 -: CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE AND CON FIRMED PENALTY LEVIED BY THE AO. HENCE, THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL PLACED ON RECORD. IN THE INSTANT CASE, THE ADDITIO N MADE BY THE AO AMOUNTING TO RS. 6,63,504/- REPRESENTING DIFFERE NCE OF LEDGER BALANCES WAS DELETED BY THE CO-ORDINATE BENCH OF IT AT AND ON THE SAME ISSUE, THE AO LEVIED THE PENALTY. SINCE, THE IMPUGNED ADDITION MADE BY THE AO WAS DELETED, THE PENALTY OR DER BECOMES INFRUCTUOUS, HENCE, WE SET ASIDE THE ORDER OF THE L D. CIT(A) AND ALLOW THE APPEAL OF THIS ASSESSEE. 6. SINCE WE HAVE CANCELLED THE PENALTY ON MERITS, W E CONSIDER IT IS NOT NECESSARY TO ADJUDICATE GROUND NOS.1 & 2. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH NOVEMBER, 2019. SD/- SD/- (N.V. VASUDEVAN) (D.S. SUNDER SINGH) VICE PRESIDENT ACCOUNTANT MEMBE R BENGALURU, DATED: 29-11-2019 EDN ITA NO.1529/BANG/2019 :- 4 -: COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE