Kirloskar Chillers Pvt. Ltd., Pune V. Joint Commissioner of Income-tax,

ITA 1578/PUN/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3203 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-02-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 21-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK BABU
• Keywords: Question of law
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO , AM . / ITA NO S . 1577 TO 1579 /P U N/201 6 / ASSESSMENT YEAR S : 20 07 - 08 TO 2009 - 10 KIRLOSKAR CHILLERS PVT. LTD., OFFICE NO.104, 1 ST FLOOR, TOWER P - 3, PENTAGON, MAGARPATTA CITY, PUNE 411028 . / APPELLANT P AN: A ABCK1730B VS. THE JT . COMMISSIONER OF INCOME TAX, RANGE 11, PUNE . / RESPONDENT / APPELLANT BY : SHRI C.H. NANIWADEKAR / RESPONDENT BY : SHRI ASHOK BABU / DATE OF HEARING : 20 . 0 2 .201 9 / DATE OF PRONOUNCEMENT: 26 . 0 2 .201 9 / ORDER PER SUSHMA CHOWLA, J M : THIS BUNCH OF THREE APPEAL S FILED BY ASSESSEE ARE AGAINST SEPARATE ORDER S OF CIT (A) - 7 , PUNE , ALL DATED 01 . 0 4 .20 1 6 RELATING TO ASSESSMENT YEAR S 2007 - 08 TO 2009 - 1 0 AGAINST PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . ITA NO S . 1577 TO 1579 /P U N/20 1 6 KIRLOSKAR CHILLERS PVT. LTD. 2 2. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE DURING THE COURSE OF HEARING HAS FILED THE ADDITIONAL GROUND OF APPEAL IN ALL THE CAPTIONED APPEAL S WHICH READS AS UNDER: - THE LEARNED ASSESSING OFFICER ERRED ON FACTS AND IN LAW IN INITIATING PENALTY PROCEEDINGS WITHOUT SPECIFYING THE EXACT LIMB OF SECTION 271(1)(C) OF THE ACT AND ALSO LEVYING PENALTY FOR FURNISHING OF INACCURATE PARTICULARS AS WELL AS CONCEALMENT OF INCOME BY INVOKING EXPLANATION 1 TO SECTION 271(1)(C). 3. THE ISSUE RAISED VIDE ADDITIONAL GROUND OF APPEAL IN ALL THE PRESENT APPEALS IS JURISDICTIONAL IN NATURE AND INVOLVES QUESTION OF LAW AND NO VERIFICATION OF FACTS, HENCE THE SAME IS ADMITTED FOR ADJUDICATION. 4. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL S IS AGAINST LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT . 5. BEFORE GOING INTO THE MERITS OF SAID LEVY OF PENALTY FOR CONCEALMENT, WE REFER TO THE SATISFACTION RECORDED BY THE ASSESSING OFFICER WHILE INITIATING PENALTY PROCEEDINGS. THE ASSESSING OFFICER VIDE PARA 5.8 HAD HELD THAT SINCE THE ASSESSEE HAS CONCEALED ITS INCOME BY FILING INACCURATE RETURNS IN RESPECT OF PURCHASES, PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT ARE INITIATED SEPARATELY. WHILE LEVYING PENALTY, THE ASSESSING OFFICER VIDE PARA 5 OF PENALTY ORDER HAD HELD THAT THE ASSESSEES CASE IS THUS CLEARLY COVERED UNDER EXPLANATION 1 TO SUB - SECTION (1) OF SECTION 271 OF THE INCOME TAX ACT , 1961 AND ASSESSING OFFICER HELD THE ASSESSEE TO HAVE FURNISHED INACCURATE PARTICULARS OF ITS INCOME . IN VIEW OF NON RECORDING OF PROPER SATISFACTION BY THE ASSESSING OFFICER WHILE INITIATING PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT, WHEREI N PENALTY WAS INITIATED FOR BOTH THE LIMBS I.E. CONCEALMENT OF INCOME AND FURNISHING OF INACCURATE PARTICULARS OF INCOME AND THEREAFTER ALSO WHILE LEVYING PENALTY FOR CONCEALING THE INCOME AND FURNISHING INACCURATE PARTICULARS OF INCOME ; WE FIND THAT IN TH E ABSENCE OF PROPER SATISFACTION BEING RECORDED AND SHOW CAUSE BEING GIVEN TO THE ASSESSEE AS TO NON FULFILLMENT OF ITA NO S . 1577 TO 1579 /P U N/20 1 6 KIRLOSKAR CHILLERS PVT. LTD. 3 EITHER OF THE LIMBS OF SECTION , THERE IS NO MERIT IN LEVY OF AFORESAID PENALTY UNDER SECTION 271(1)(C) OF THE ACT. 6. WE FIND SUPPORT FRO M THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. SHRI SAMSON PERINCHERY (2017) 392 ITR 4 (BOM), WHEREIN IT WAS HELD THAT WHERE THERE IS NO PROPER SATISFACTION FOR INITIATING PENALTY PROCEEDINGS AND IN THE ABSENCE OF PROPER SHOW CAUSE NOTIC E TO THE ASSESSEE, THERE IS NO MERIT IN LEVY OF PENALTY. ACCORDINGLY, WE DELETE THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT IN ALL THE APPEALS . THE ADDITIONAL GROUND OF APPEAL RAISED BY ASSESSEE IN ALL THE APPEALS IS THUS, ALLOWED. 7 . IN THE R ESULT, ALL THE APPEAL S OF ASSESSEE ARE ALLOWED. ORDER PRONOUNCED ON THIS 26 TH DAY OF FEBRUARY , 201 9 . SD/ - SD/ - ( D.KARUNAKARA RAO ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 26 TH FEBRUARY , 201 9 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 7 , PUNE ; 4. THE PR. CI T - 6 , PUNE ; 5. 6. , , / DR A , ITAT, PUNE ; / GUARD FILE . / BY ORDE R , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE