SHRI BHAGWANDAS BAHETI, Neemuch V. THE ITO, Neemuch

ITA 170/Ind/2023

AI Insights

The case involves Shri Bhagwan Das Baheti, the appellant, who contested a penalty imposed by the ITO, Neemuch, under section 271(1)(c) of the Income-tax Act, 1961, for the assessment year 2006-07. Initially, the AO assessed the income at Rs. 48,80,053, which was contested and led to a series of appeals. The ITAT had previously set aside the assessment, leading to a re-assessment where the income was returned to 'Nil'. The appellant argued that with the re-assessment, the basis for the penalty had disappeared, and thus, the penalty should be deleted. The Tribunal agreed with this argument, leading to the deletion of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130532 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-09-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 27-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 271(1)(c); 143(3)

Judgement Text

Page 1 of 2 आयकर अपीलȣय अͬधकरण, इंदौर Ûयायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No. 170/Ind/2023 Assessment Year: 2006-07 Shri Bhagwan Das Baheti, Flat No.101, Bhagwati Residency, Phiroj Shaw Road, Neemuch बनाम/ Vs. I.T.O., Neemuch (Assessee / Appellant) (Revenue / Respondent) PAN: AAOPB9624R Assessee by Shri Pankaj Shah, CA and Shri Soumya Bumb, ARs Revenue by None Date of Hearing 14.09.2023 Date of Pronouncement 15.09.2023 आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by appeal-order dated 09.03.2023 passed by learned Commissioner of Income-tax-NFAC, Delhi [“CIT(A)”], which in turn arises out of penalty-order dated 05.10.2016 passed by learned ITO, Neemuch [“AO”] u/s 271(1)(c) of Income-tax Act, 1961 [“the Act”] for assessment-year [“AY”] 2006-07, the assessee has filed this appeal. 2. When the case was called, none appeared on behalf of revenue. However, there is an intimation from revenue’s side that the Ld. DR is on office tour. Ld. AR for assessee submitted that the case is straightforward Shri Bhagwan Das Baheti, Neemuch v. ITO, Neemuch ITA No.170/Ind/2023 – AY 2006-07 Page 2 of 2 and can be decided taking into account his submissions even without representation from revenue. Accordingly, the hearing was proceeded. 3. Ld. AR submitted that the assessee filed return declaring “Nil” income in the proceeding of section 147. The AO, however, completed assessment vide order dated 24.12.2009 u/s 147 read with section 143(3) determining the total income at Rs. 48,80,053/- as against returned income of Rs. Nil. The assessee carried matter in first-appeal to CIT(A) but could not succeed. The assessee went in next appeal ITA No. 94/Ind/2016 to ITAT, which the ITAT decided on 27.11.2018 wherein the assessment-order was set aside to AO. In pursuance thereof, the AO passed newer assessment-order dated 31.12.2019 accepting the returned income of Rs. Nil. During intervening period, the AO passed penalty-order u/s 271(1)(c) dated 05.10.2016 qua the originally assessed income of Rs. 48,80,053/-. Now, since the assessed income has again turned to Rs. Nil, there is no surviving addition. Therefore, the penalty imposed by AO u/s 271(1)(c) also has no legs to stand and the same deserves to be deleted fully. 3. We find merit in the submissions of Ld. AR, accordingly the penalty imposed by AO is deleted. The assessee succeeds in this appeal. 4. Resultantly, this appeal is allowed. Order pronounced in the open court on 15.09.2023. Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore Ǒदनांक /Dated : 15.09.2023. CPU/Sr. PS