ASST CIT RG 25(3), MUMBAI V. SUNITA HEGDE, MUMBAI

ITA 1665/MUM/2011

• Counselvise Citation: 166519914 RSA 2011
• Duration Of Justice: 3 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 25-03-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 28-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'H' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.1665/MUM/2011 (ASSESSMENT YEAR: 2005-06) ACIT, RANGE 25(3) SMT. SUNITA HEGDE C-11, ROOM NO. 308, PRATYAKSH PRITAM VILLAGE ROW HO USE KAR BHAVAN, BANDRA -KURLA COMPLEX, BANDRA (E) VS. OPP. CAMABRIDGE SCHOOL THAKUR VILLAGE, MUMBAI 400051 MUMBAI 400067 PAN - AAAPH1855L APPELLANT RESPONDENT APPELLANT BY: SHRI P.K. SINGH RESPONDENT BY: NONE DATE OF HEARING: 25.03.2014 DATE OF PRONOUNCEMENT: 25.03.2014 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 6.01.2011 PASSED BY THE CIT(A) 35 AND IT PERTAINS T O A.Y. 2005-06. 2. PENALTY LEVIED BY THE AO UNDER SECTION 271(1)(C) OF THE ACT HAVING BEEN SET ASIDE BY THE CIT(A), REVENUE IS IN APPEAL BEFOR E US CONTENDING, INTER ALIA, THAT THE ALLEGED GIFT OF A SUM OF ` 10 LAKHS WAS NOT PROVED BY THE ASSESSEE AND CONSEQUENTLY THE AO WAS JUSTIFIED IN LEVYING PE NALTY. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HE ARD THE LEARNED D.R. AND PERUSED THE RECORD. AT THE OUTSET IT MAY B E NOTICED THAT DURING THE COURSE OF QUANTUM PROCEEDINGS BEFORE THE ITAT THE A SSESSEE FURNISHED SOME ADDITIONAL MATERIAL TO PROVE THAT A GIFT OF ` 10 LAKHS WAS RECEIVED FROM ONE MR. KAMAL RAMESH VERMA, WHO WAS A CLOSE COLLEAGUE O F ASSESSEES HUSBAND AND THE DONOR IS A MAN OF MEANS. UPON ADMITTING THE ADDITIONAL EVIDENCE THE MATTER WAS SET ASIDE BY THE ITAT TO THE FILE OF THE AO TO RECONSIDER THE MATTER IN ACCORDANCE WITH LAW. ITA NO.1665/MUM/2011 SMT. SUNITA HEGDE 2 4. IN THE APPEAL FILED BY THE ASSESSEE BEFORE THE CIT( A) AGAINST LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT IT WAS C ONTENDED THAT THE VERY BASIS UPON WHICH PENALTY WAS LEVIED NO LONGER SUBSI STS SINCE THE IMPUGNED ORDER OF THE AO WAS SET ASIDE AND HENCE THE PENALTY PROCEEDINGS HAVE NO LEGS TO STAND. ACCORDINGLY THE LEARNED CIT(A) CANCE LLED THE PENALTY LEVIED BY THE AO BY OBSERVING THAT THE AO IS ENTITLED TO INIT IATE PENALTY PROCEEDINGS AFRESH AFTER GIVING EFFECT TO THE ORDER PASSED BY T HE ITAT. 5. THE LEARNED D.R. SUBMITTED THAT THE AO HAS GIVEN EF FECT TO THE ORDER PASSED BY THE ITAT AND REPEATED THE ADDITION AND IS SUED A FRESH NOTICE WITH REGARD TO LEVY OF PENALTY UNDER SECTION 271(1)(C) O F THE ACT. HE SUBMITTED THAT THE ADDITION HAVING BEEN SUSTAINED BY THE AO, IT IS A FIT CASE FOR LEVY OF PENALTY. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED D .R. AND CAREFULLY PERUSED THE RECORD. THE PRESENT PENALTY PROCEEDINGS ARE INITIATED CONSEQUENT TO THE ASSESSMENT ORDER MADE BY THE AO O N 24.12.2007 AND THE SAID ASSESSMENT ORDER HAVING BEEN SET ASIDE BY THE ITAT, THE LEARNED CIT(A), IN OUR CONSIDERED OPINION, WAS JUSTIFIED IN CANCELL ING THE PENALTY WITH A SPECIFIC DIRECTION THAT THE AO IS ENTITLED TO INITI ATE PENALTY PROCEEDINGS AFRESH AFTER GIVING EFFECT TO THE ITAT ORDER IN THE QUANTUM PROCEEDINGS. THE LEARNED D.R. COULD NOT PLACE ON RECORD THE ORDER PA SSED BY THE AO, GIVING EFFECT TO THE ORDER OF THE ITAT AND, THEREFORE, IT IS NOT POSSIBLE TO APPRECIATE AT THIS STAGE AS TO WHAT ARE THE REASONS MENTIONED THEREIN FOR MAKING THE ADDITION, IF ANY. AT ANY RATE, IN THE CIRCUMSTANCES OF THE CASE WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE CIT(A) AND , THEREFORE, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH MARCH, 2014. SD/- SD/- (RAJENDRA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 25 TH MARCH, 2014 ITA NO.1665/MUM/2011 SMT. SUNITA HEGDE 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 35, MUMBAI 4. THE CIT 25, MUMBAI CITY 5. THE DR, H BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.