JItendra P. Navalakha, Pune V. Additional Commissioner of Income-tax,

ITA 182/PUN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93645 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-04-2015
• Assessment Year: 2000-2001
• Appeal Filed On: 29-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Section: 6; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE: SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO S. 182 & 183 /PN/201 4 ASSESSMENT YEAR S : 20 00 - 01 & 2002 - 03 SHRI JITENDRA P. NAVALAKHA, PARTNER OF M/S. KAMDHENU PESTICIDES, KRISHI BHAVAN, 1379 BHAVANI PETH, PUNE-411002 VS. ADDL. COMMISSIONER OF INCOME TAX, RANGE 3, PUNE (APPELLANT) (RESPONDENT) PAN NO. AFFPN0877C REVENUE BY: SHRI PANKAJ GARG ASSESSEE BY: N O N E DATE OF HEARING : 07-04-2015 DATE OF PRONOUNCEMENT : 10-04-2015 ORDER PER VIKAS AWASTHY, JM:- THE APPEAL IN ITA NO. 182/PN/2014 FOR THE ASSESSMENT Y EAR 2000-01 AND ITA NO. 183/PN/2014 FOR THE ASSESSMENT YE AR 2002-03 HAVE BEEN FILED BY THE ASSESSEE IMPUGNING THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-II, PUNE DATED 21-10 -2013 COMMON FOR BOTH THE ASSESSMENT YEARS. IN APPEALS, THE ASSESSEE HAS ASSAILED THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) IN CONFIRMING THE PENALTY LEVIED U/S. 271D OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE : A SEARCH OPERATION U/S. 132 OF THE ACT WAS CARRIED OUT IN THE CASE OF SHRIRAM H. SONI ON 29-07-2003. DURING THE COURSE OF SEA RCH CERTAIN BLANK CHEQUES BEARING SIGNATURES OF THE ASSESSEE WERE ALLEGEDLY SEIZED. 2 ITA NOS. 182 & 183/PN/2014, A.YS. 2000-01 & 2002-03 THE ASSESSING OFFICER MADE ADDITION OF RS.2 LAKHS U/S. 69D OF THE ACT IN THE ASSESSMENT YEAR 2000-01 AND RS.28 LAKHS IN THE ASS ESSMENT YEAR 2002-03. FOR THE ADDITION MADE U/S. 69D OF THE ACT, PENA LTY PROCEEDINGS U/S. 271D OF THE ACT WERE ALSO INITIATED. AGGRIEVED BY THE ASSESSMENT ORDERS FOR THE RESPECTIVE ASSESSMENT YEARS, THE ASSESSEE PREFERRED APPEALS BEFORE THE COMMISS IONER OF INCOME TAX (APPEALS). THE COMMISSIONER OF INCOME TAX (APPEALS) VIDE COMMON ORDER DATED 27-01-2011 DELETED THE ADDITION MADE U/S. 6 9D OF THE ACT IN BOTH THE ASSESSMENT YEARS. AGAINST THE ORDER OF FIRST APPELLATE AUTHORITY IN QUANTUM APPEAL, THE REVENUE APPROACHED TH E TRIBUNAL IN ITA NO. 473/PN/2011 FOR ASSESSMENT YEAR 2000-01 AND I TA NO. 474/PN/2011 FOR ASSESSMENT YEAR 2002-03. THE CO-ORDIN ATE BENCH OF THE TRIBUNAL VIDE ORDER DATED 25-02-2013 REMITTED THE MATTER BACK TO THE ASSESSING OFFICER FOR DECIDING THE ISSUES AFRESH. 3. IN THE MEANTIME PENALTY PROCEEDINGS WERE ALSO INITIATED AGAINST THE ASSESSEE AND PENALTY EQUAL TO THE AMOUNT OF CASH LO AN WAS LEVIED U/S. 271D OF THE ACT. IN APPEAL AGAINST PENALTY ORDER, THE COMMISSIONER OF INCOME TAX (APPEALS) UPHELD THE PENALTY FOR BOTH THE AS SESSMENT YEARS. NOW, THE ASSESSEE HAS COME IN SECOND APPEAL BEFORE THE TRIBU NAL, ASSAILING THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS). 4. DESPITE SERVICE OF NOTICE NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HEARD THE SUBMISSIONS MADE BY LEARN ED DEPARTMENTAL REPRESENTATIVE (DR) AND HAVE PERUSED THE O RDERS OF THE AUTHORITIES BELOW. WE ARE OF THE CONSIDERED VIEW THAT ONC E THE SUBSTRATUM ON THE BASIS OF WHICH PENALTY WAS LEVIED HAS B EEN RAZED, THE ORDER LEVYING PENALTY IS NOT SUSTAINABLE. THE CO-ORDINATE BENCH OF THE TRIBUNAL HAS REMITTED THE FILE BACK TO THE ASSESSING OFFICER FOR DECIDING THE ISSUE AFRESH. THE ASSESSMENT ORDER HAS TO BE PASS ED DE-NOVO. THE 3 ITA NOS. 182 & 183/PN/2014, A.YS. 2000-01 & 2002-03 PRESENT PENALTY PROCEEDINGS ARE NOT SUSTAINABLE IN VIEW O F THE FACT THAT THE ORIGINAL ASSESSMENT ORDER HAS BEEN SET ASIDE. THE IMPUGNED ORDERS ARE ACCORDINGLY SET ASIDE. 5. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED ON FRIDAY, THE 10 TH DAY OF APRIL, 2015 AT PUNE SD/- SD/- (R.K. PANDA) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 10 TH APRIL, 2015 RK/PS COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) - I I , PUNE 4 THE CIT - I I, PUNE 5 6 THE DR, ITAT, B BENCH, PUNE. GUARD FILE. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, PUNE