THE SOUTH EASTERN COAL FIELDS LTD., BILASPUR, BILASPUR(CG) V. THE DY. COMMISSIONER OF INCOME TAX,CIRCLE , 1(1)BILASPUR, BILASPUR(CG)

ITA 160/BIL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9572 (ITAT-RAIPUR)
• Duration Of Justice: 4 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 06-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SINGH
• Assessee Lawyers: AJIT KORDE SHRI VIVEK RUIA; ANKIT AGRAWAL A RS
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI N. K. CHOUDHRY, JUDICIAL MEMBER ./ I.T.A. NO. 160/RPR/2017) ( [ [ / ASSESSMENT YEAR : 2007-08) SOUTH EASTERN COAL FIELDS LTD. DIRECTOR (FINANCE), S.E.C.L. SEEPAT ROAD, BILASPUR (CG), PIN: 495006 / VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), BILASPUR INCOME TAX OFFICE, MAHIMA COMPLEX, VYAPAR VIHAR, BILASPUR(CG) PIN: 495001 ./ ./PAN/GIR NO. : AADCS2066E ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI AJIT KORDE , SHRI VIVEK RUIA & SHRI ANKIT AGRAWAL, A.RS. / RESPONDENT BY : SHRI R. K. SINGH, CIT.DR / DATE OF HEARING 28/07/2021 / DATE OF PRONOUNCEMENT 29/07/2021 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), BILASPUR (CIT(A) IN SHORT), DATED 28.12.2016 ARISING IN THE PENALTY ORDER DATED 30.01.2015 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 2007-08. ITA NO. 160/RPR/2017 (SECL VS. DCIT) A.Y. 2007-08 - 2 - 2. THE APPEAL CONCERNS IMPOSITION OF PENALTY UNDER S.271(1)(C) OF THE ACT ON DISALLOWANCE OF PROVISION OF LEAVE ENCASHMENT HAVING ITS GENESIS IN RE-ASSESSMENT ORDER DATED 25.02.2014 PASSED UNDER S.143(3) R.W.S. 147 OF THE ACT. RE-ASSESSMENT NOTICE ISSUED FOR THE CONCERNED A.Y. 2007-08 WAS FOUND TO BE VITIATED IN LAW AND THUS NONEST AND CONSEQUENT RE-ASSESSMENT ORDER WAS THUS QUASHED BY THE TRIBUNAL VIDE ORDER DATED 29.07.2021 IN ITA NO. 400/RPR/2014 IN THE CASE OF THE ASSESSEE. 3. AS THE EDIFICE FOR IMPOSITION OF PENALTY ITSELF IS SHAKEN TO ITS ROOT OWING TO QUASHING OF THE RE-ASSESSMENT ORDER, THE VERY BASIS FOR IMPOSITION OF PENALTY CEASES TO EXIST. THE PENALTY UNDER S.271(1)(C) OF THE ACT CANNOT BE SUSTAINED ON ADDITIONS/DISALLOWANCES RESULTING FROM A NONEST RE-ASSESSMENT ORDER. THE ORDER DATED 28.12.2016 PASSED BY THE CIT(A) APPEALED AGAINST, IS THEREFORE SET ASIDE AND THE PENALTY ORDER OF THE AO UNDER S.271(1)(C) OF THE ACT DATED 30.01.2015 IS CANCELLED. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. SD/- SD/- (N. K. CHOUDHRY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER RAIPUR: DATED 29/07/2021 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. / CONCERNED CIT 4. - / CIT (A) 5. , , / DR, ITAT, RAIPUR THIS ORDER PRONOUNCED IN OPEN COURT ON 29/07/2021 ITA NO. 160/RPR/2017 (SECL VS. DCIT) A.Y. 2007-08 - 3 - 6. [ / GUARD FILE. BY ORDER , SR. PRIVATE SECRETARY ITAT , RAIPUR (ON TOUR)