Deputy Commissioner of Income-tax, Circle - 1, Aurangabad V. M/s. Prabha Farms Pvt.Ltd, Aurangabad,

ITA 1549/PUN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6076 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-09-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 19-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: IS DIRECTED AGAINS T PASSED
• Section: 201; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE VIRTUAL COURT BEFORE SH RI R.S. SYAL, VICE PRESIDENT AND SH RI PARTHA SARATHI CHA U DHURY , J UDICIAL MEMBER . / ITA NO. 1549 /PUN/201 7 / ASSESSMENT YEAR : 20 13 - 14 DCIT, CIRC LE - 1, AURANGABAD VS. M/S. PRABHA FARMS PVT. LTD. , NATH HOUSE, NATH ROAD, AURANGABAD PAN: AACCP3782D APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) - 1, AURANGABAD ON 22 - 0 3 - 201 7 DELETING THE PENALTY OF RS. 77 ,24, 199 / - IMPOSED BY THE ASSESSING OFFICER (AO) U/S.271(1)(C) OF THE INCOME - TAX ACT, 196 1 (HEREINAFTER CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEAR 20 13 - 14 . 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN WITH NIL INCOME. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S.14 3(3) OF THE ACT DETERMINING TOTA L INCOME OF RS. 3,57,10,580 / - UNDER THE HEAD `C APITAL GAIN S . THEREAFTER, A SSESSEE BY SHRI N.R. AGARWAL RE VENUE BY SHRI S.P. WALIMBE DATE OF HEARING 29 - 09 - 20 20 DATE OF PRONOUNCEMENT 29 - 09 - 20 20 ITA NO. 1549 / PUN/ 201 7 PRABHA FARMS PVT. LTD. 2 PENALTY OF RS. 77,24,199/ - WAS IMPOSED BY THE AO U/S.271(1)(C) ON ACCOUNT OF SUCH ADDITION WHICH CAME TO BE DELETED IN THE FIRST APPEAL. 3. HAVING HEARD BOTH THE SIDES THROUGH VIR TUAL COURT AND PERUSED THE RELEVANT MATERIAL ON RECORD, IT IS NOTICED THAT THE QUANTUM APPEAL OF THE ASSESSEE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL. VIDE ORDER DATED 27 - 02 - 20 20 , THE TRIBUNAL IN ITA NO. 1653 /PUN/201 6 HAS RESTORED THE MATTER TO THE FI LE OF AO FOR FRESH CONSIDERATION AND DECISION. SINCE THE MATTER IN QUANTUM PROCEEDINGS HAS BEEN RESTORED TO THE FILE OF THE ASSESSING OFFICER, WE ARE OF THE CONSIDERED OPINION THAT IT WOULD BE IN THE FITNESS OF THINGS IF THE MATTER CONCERNING THE PENALTY O N SUCH AMOUNT IS ALSO SENT BACK TO BE DECIDED IN CONFORMITY WITH THE VIEW TAKEN BY THE ASSESSING OFFICER IN THE PROCEEDINGS PURSUANT TO THE DIRECTIONS GIVEN BY THE TRIBUNAL IN QUANTUM PROCEEDINGS . WE ORDER ACCORDINGLY. NEEDLESS TO SAY, THE ASSESSEE WILL B E ALLOWED A REASONABLE OPPORTUNITY OF HEARING IN THIS REGARD. OUR VIEW IN RESTORING THE PENALTY TO THE AO IS FORTIFIED BY THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF MOHD. MOHATRAM FAROOQUI VS. CIT (SC) 2010 - TIOL - 23 - SC - IT IN WHICH IT HAS BEE N HELD THAT IF ADDITION IS RESTORED TO THE AO, THEN PENALTY ITA NO. 1549 / PUN/ 201 7 PRABHA FARMS PVT. LTD. 3 SHOULD ALSO BE RESTORED. THE HONBLE DELHI HIGH COURT IN SANJAY GUPTA VS. CIT (2014) 366 ITR 18 (DEL) HAS ALSO HELD THAT WHERE THE QUANTUM HAS BEEN REMANDED TO THE AO, THE QUESTION OF PENALTY ON A CCOUNT OF THE SAID AMOUNT BEING TREATED AS UNDISCLOSED INCOME, SHOULD ALSO BE REMANDED TO THE AO. 4 . IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON 29 TH SEPTEMBER , 20 20 . SD/ - SD/ - ( PARTHA SARATHI CHAUDHURY ) ( R.S.SYAL ) JUDICIAL MEMBER VICE PRESIDENT PUNE ; DATED : 29 TH SEPTEMBER , 20 20 GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A) - 1, AURANGABA D 4 . 5. 6 . THE PR. CIT - 1, AURANGABAD , , / DR A , ITAT, PUNE; / GUARD FILE . / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO. 1549 / PUN/ 201 7 PRABHA FARMS PVT. LTD. 4 DATE 1. DRAFT DICTATED ON 29 - 09 - 20 20 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 29 - 09 - 2 0 20 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 1 1. DATE OF DISPATCH OF ORDER. *