Deputy Commissioner of Income-tax, V. Bharat Forge Ltd.,

ITA 1688/PUN/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4735 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 04-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO. 1688/ PUN/20 16 / ASSESSMENT YEAR : 2014 - 15 THE DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION), CIRCLE - 1, PUNE. ....... / APPELLANT / V/S. BHARAT FORGE LIMITED. MUNDHWA, PUNE - 411 036 PAN: AAACB8519L / RESPONDENT REVENUE BY : SHRI DEEPAK GARG A SSESSEE BY : SHRI NIKHIL PATHAK / DATE OF HEARING : 16 . 10 .2020 / DATE OF PRONOUNCEMENT : 16 .10 .2020 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - 13, PUNE DATED 24.05.2016 FOR THE ASSESSMENT YEAR 2014 - 15 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 1688 /PUN/20 16 A.Y. 2014 - 15 2. THE CRUX OF THE GRIEVANCE OF THE REVENUE IN TH IS APPEAL IS THE DELETION OF PENALTY AMOUNTING TO RS.4,50,12,760 U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) LEVIED BY THE ASSESSING OFFICER BUT DELETED BY THE LD. CIT(APPEALS). 3. AT THE VERY OUTSET, THE LD. AR FOR THE ASSESSEE SUBMITTED WITH THE PERMISSION OF THE BENCH THAT IN THIS APPEAL PREFERRED BY THE REVENUE, QUANTUM APPEAL HAS BEEN RESTORED TO THE FILE OF THE LD. CIT(APPEALS) BY THE PUNE BENCH OF THE TRIBUNAL IN ITA NO.1817/PUN/2018 DATED 17.05.2019 VIDE PARA 5 AND 6 OF THE SAID O RDER AND THEREFORE, IN PARITY WITH JUSTICE, EVEN THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT MAY ALSO BE RESTORED TO THE FILE OF THE LD. CIT(APPEALS). 4. THE LD. DR FAIR LY CONCEDED TO THE SUBMISSIONS MADE BY THE LD. AR OF THE ASSESSEE. 5. AFTER HEARING THE PARTIES HEREIN AND GOING THROUGH THE RELEVANT ORDER OF THE TRIBUNAL IN SO FAR AS QUANTUM APPEAL IS CONCERNED, WE FIND THE TRIBUNAL VIDE PARA 5 AND 6 OF ITS ORDER (SUP RA.), THE MATTER HAS BEEN RESTORED TO THE FILE OF THE LD. CIT(APPEALS) AND THEREFORE, PENALTY LEVIED U/S.271(1)(C) OF THE ACT SHOULD ALSO BE RESTORED TO THE FILE OF THE LD. CIT(APPEALS) FOR FRESH ADJUDICATION CONSIDERING THE TOTALITY OF FACTS AND ISSUES IN THE CASE WHILE COMPLYING WITH THE PRINCIPLES OF NATURAL JUSTICE. OUR VIEW IN RESTORING THE PENALTY TO THE LD. CIT(APPEALS) IS FORTIFIED BY THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF MOHD. MOHATRAM FAROOQUI VS. CIT (SC) 2010 - TIOL - 23 - SC - IT IN WHICH IT HAS BEEN HELD THAT IF ADDITION IS RESTORED TO THE A SSESSING O FFICER , THEN PENALTY SHOULD ALSO BE 3 ITA NO. 1688 /PUN/20 16 A.Y. 2014 - 15 RESTORED. THE HON'BLE DELHI HIGH COURT IN SANJAY GUPTA VS. CIT (2014) 366 ITR 18 (DEL) HAS ALSO HELD THAT WHERE THE QUANTUM HAS BEEN REMANDED TO T HE A SSESSING O FFICER , THE QUESTION OF PENALTY ON ACCOUNT OF THE SAID AMOUNT BEING TREATED AS UNDISCLOSED INCOME, SHOULD ALSO BE REMANDED TO THE ASSESSING OFFICER . 6. IN THE PRESENT CASE IN HAND, SINCE THE QUANTUM APPEAL HAS BEEN RESTORED TO THE LD. CIT(AP PEALS), THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT IS ALSO RESTORED TO THE FILE OF THE LD. CIT(APPEALS) FOR FRESH ADJUDICATION AS INDICATED HEREINABOVE . 7. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED ON 16 TH DAY OF OCTOB ER, 20 20 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 16 TH OCTOBER , 2020. SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 13, PUNE. 4. THE PR. CIT - 5, PUNE. 5 . , , , / DR, ITAT, B BENCH, PUNE. 6 . / GUARD FILE. / BY ORDER, // TRUE COPY // / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 1688 /PUN/20 16 A.Y. 2014 - 15 DATE 1 DRAFT DICTATED ON 16 .10 .2020 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 16 .10 .2020 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER