M/s. Aditya Birla Health Services Ltd, Pune V. Deputy Commissioner of Income-tax, Circle - 8, Pune

ITA 1714/PUN/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9208 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHUSHAN PATIL
• Assessee Lawyers: DR PRAYAG JHA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM . / ITA NO.1714/PUN/2017 / ASSESSMENT YEAR : 2007-08 M/S. ADITYA BIRLA HEALTH SERVICES LTD., S. NO.31, ADITYA BIRLA HOSPITAL MARG, THERGAON, CHINCHWAD, PUNE-411033. PAN : AADCA7613B ....... / APPELLANT / V/S. DCIT, CIRCLE-8, PUNE. / RESPONDENT ASSESSEE BY : SHRI (DR.) PRAYAG JHA REVENUE BY : SHRI BHUSHAN PATIL / DATE OF HEARING : 04.10.2019 / DATE OF PRONOUNCEMENT : 04.10.2019 / ORDER PER D. KARUNAKARA RAO, AM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-6, PUNE DATED 28.04.2017 FOR THE ASSESSMENT YEAR 2007-08. APPEAL RELATES TO THE ISSUE OF LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. 2. BEFORE US, AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE FILED A COPY OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE VIDE ITA NO.248/PUN/2015 FOR THE ASSESSMENT YEAR 2007-08 DATED 23.05.2018 AND SUBMITTED THAT THE ADDITIONS, WHICH ARE SUBJECT MATTER OF PENALTY, NOW STAND REMANDED TO THE FILE OF THE CIT(A). IN THIS REGARD, LD. COUNSEL BROUGHT OUR ATTENTION TO THE CONTENTS OF PARA 16 AND 17 OF THE ORDER OF THE TRIBUNAL (SUPRA). FURTHER, LD. COUNSEL SUBMITTED THAT CONSIDERING THE DECISION OF THE TRIBUNAL (SUPRA) ON THE FATE OF THE QUANTUM ADDITIONS, THE PENALTY RELATED ISSUES SHOULD ALSO BE REFERRED TO THE FILE OF THE CIT(A) FOR A CONSISTENT VIEW IN THE MATTERS. 2 ITA NO.1714/PUN/2017 3. ON THE OTHER HAND, LD. DR FOR THE REVENUE RELIED HEAVILY ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 4. ON HEARING BOTH THE SIDES ON THIS LIMITED ISSUE OF REMANDING THE PENALTY MATTERS ALSO TO THE FILE OF THE CIT(A), WE FIND RELEVANT TO EXTRACT THE CONTENTS OF PARA 16 AND 17 OF THE ORDER OF THE TRIBUNAL (SUPRA) AND THE SAME ARE EXTRACTED HEREUNDER :- 16. CONSIDERING ALL THESE ISSUES MENTIONED ABOVE, WE ARE OF THE OPINION THAT CIT(A) NEEDS TO VERIFY THE ARGUMENTS OF LD. A.R. RELATING TO ALL THE LEGAL ISSUE. THERE IS REQUIREMENT FOR REMANDING THE SAID LEGAL ISSUES RAISED IN GROUND NO. 1(A) AND 1(B) TO THE FILE OF CIT(A) FOR FRESH ADJUDICATION ON ALL THE ARGUMENT OF THE ASSESSEE DISCUSSED ABOVE. THE CIT(A) SHALL GRANT REASONABLE OPPORTUNITY OF BEARING HEARD TO THE ASSESSEE IN ACCORDANCE WITH SET PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, GROUND NO. 1(A) & 1(B) IS ALLOWED FOR STATISTICAL PURPOSES. 17. IN VIEW OF THE ABOVE, THE ADJUDICATION OF THE ISSUES ON MERITS RAISED IN GROUND NO. 2, 3 AND 4 BECOMES PREMATURE. CIT(A) IS DIRECTED TO RE CONSIDER THE SAME AND PASSED A SPEAKING ORDER ON THESE GROUNDS TOO AFTER CONSIDERING THE ARGUMENTS OF THE ASSESSEE ON MERITS. 5. FROM THE ABOVE, IT IS EVIDENT THAT THE ISSUES ON THE ADDITIONS NOW STAND REMANDED TO THE FILE OF THE CIT(A) AFTER SETTING ASIDE THE ORDER OF THE CIT(A). CONSIDERING THE ABOVE, WE ARE OF THE OPINION THAT, AS ON DATE, THE ORDER OF THE CIT(A) STANDS SET-ASIDE TILL THE CIT(A) DOES NOT PASS A FRESH ORDER AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IT IS NOT KNOWN AS TO WHAT KIND OF DECISION LIKELY TO COME OUT ON THE QUANTUM ADDITIONS FROM THE CIT(A) IN THE SECOND ROUND OF THE PROCEEDINGS. THEREFORE, IN OUR VIEW, WE CONSIDER IT APPROPRIATE TO REMAND ALL THE ISSUES RAISED IN THE PENALTY ORDER AND THE CIT(A)S ORDER TO THE FILE OF THE CIT(A) FOR TAKING CONSISTENT DECISION IN MATTERS OF PENALTY U/S 271(1)(C) OF THE ACT. WITH THESE DIRECTIONS, ALL THE GROUNDS RAISED BY THE ASSESSEE IN THIS APPEAL ARE REMANDED TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION. THUS, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 3 ITA NO.1714/PUN/2017 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 04 TH DAY OF OCTOBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 04 TH OCTOBER, 2019 SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-6, PUNE. 4. THE PR. CIT-5, PUNE. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.