Suman Sharma, New Delhi V. ITO, New Delhi

ITA 2016/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81614 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 06-08-2014
• Assessment Year: 1999-2000
• Appeal Filed On: 05-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G: NEW DELHI BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUN TANT MEMBER ITA NO. 2016/DEL/2013 ASSESSMENT YEAR 1999-00 SUMAN SHARMA VS. IT O 11, SAINIK VIHAR WARD 25(1) PITAMPURA NEW DELHI. NEW DELHI. (PAN AWDPS1138A) (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI SATISH AGGARWAL, CA RESPONDENT BY : SHRI RAKESH KUMAR, SR. DR ORDER PER GEORGE GEORGE K, JUDICIAL MEMBER THIS APPEAL AT THE INSTANCE OF THE ASSE SSEE IS DIRECTED AGAINST CIT (A) ORDER DATED 11.1.2013. THE ORDER OF THE CIT(A) EMA NATED FROM THE ORDER OF THE ITO WARD 25 (1), NEW DELHI PASSED U/S 271(1)(C), IMPOSING A PENALTY OF RS. 6,24,340/-. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE AS FOLLOWS : ASSESSEE AS AN INDIVIDUAL, FILED HER RETUR N OF INCOME FOR ASSTT. YEAR 1999- 2000 ON 8.2.2006 DECLARING AN AMOUNT OF RS. 49,400/ -. ASSESSMENT WAS COMPLETED U/S 143 (3) READ WITH SECTION 148 VIDE OR DER DATED 23.3.2006 FIXING A TOTAL INCOME OF RS. 21,67,800/-. THE AO MADE AN ADD ITION OF RS. 21,18,400/- ON ITA NO. 2016/DEL/13 2 ACCOUNT OF UNEXPLAINED BANK DEPOSITS / LOANS. THE A SSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO CONFIRMED THE ASSESSMENT ORDE R. 3. THE ASSESSING OFFICER INITIATED PENALTY PROCE EDINGS ON 7.3.2008 BY ISSUANCE OF SHOW CAUSE NOTICE TO THE ASSESSEE. SINCE THE ASS ESSEE WAS NOT ABLE TO PROVE THE IDENTITY AND CREDITWORTHINESS OF THE CREDITOR A ND THE GENUINENESS OF THE TRANSACTION, THE ASSESSING OFFICER IMPOSED A PENALT Y OF RS. 6,24,340/- U/S 271(1) OF THE ACT. THE ASSESEE FILED AN APPEAL BEF ORE THE CIT(A) AGAINST THE IMPOSITION OF PENALTY U/S 271(1)(C) OF THE ACT. THE CIT(A) DISMISSED THE APPEAL SINCE THERE WAS NO APPEARANCE ON THE PART OF THE AS SESEE DURING THE HEARING DATES THE ASSESSEE BEING AGGRIEVED HAS FILED THE P RESENT APPEAL BEFORE US RAISING FOLLOWING GROUNDS OF APPEAL :- 1. THE ORDER OF THE CIT(A) IN CONFIRMING T HE LEVY OF PENALTY U/S 271(1) (C) AMOUNTING TO RS. 6,24,340/- I S ARBITRARY, BIASED, BAD IN LAW AND FACTS AND CIRCUMSTANCES OF TH E CASE. 2. THAT THE LD. CIT(A) HAS GROSSLY ER RED IN CONFIRMING THE LEVY OF PENALTY U/S 271(1)(C) OF RS. 6,24,3 40/- DISREGARDING THE EXPLANATION OF THE APPELLANT. 3. THAT THE LD. CIT(A) HAS GROSSLY ERRE D IN LEVY OF PENALTY U/S 271(1)(C) AS THE APPELLANT HAD NEITHER FURNI SHED INACCURATE PARTICULARS OF ITS INCOME NOR CONCEALED ITS INCOME. 4. THE LD. AUTHORISED REPRESENTATIVE OF THE AS SESSEE SUBMITTED THE QUANTUM ASSESSMENT WAS SET ASIDE BY THE HONBLE ITAT IN ITA NO. 776/2007 BY ORDER DATED 25.7.2008. IT WAS SUBMITTED THAT PURSUANT TO THE TRIBUNAL ORDER, FRESH ASSESSMENT ORDER WAS PASSED ON 30.12.2009 AND PENAL TY PROCEEDINGS U/S ITA NO. 2016/DEL/13 3 271(1) OF THE ACT WAS SEPARATELY INITIATED IN THE SAID ASSESSMENT ORDER. IT WAS SUBMITTED THE PRESENT PENALTY ORDER WHICH ARISE OUT OF THE ORIGINAL ASSESSMENT ORDER DATED 23.3.2006 DOES NOT SURVIVE AND SAME NE ED TO BE QUASHED. 5. LD. DR PRESENT WAS DULY HEARD. 6. WE HAVE HEARD RIVAL SUBMISSION AND PERUSED T HE MATERIAL ON RECORD. THE PRESENT PENALTY ORDER EMANATES FROM THE ASSESSMENT ORDER DATED 23.3.2006. THE ASSESSMENT ORDER DATED 23.3.2006 HAS BEEN SET ASIDE BY THE TRIBUNAL IN ITS ORDER DATED 25.7.2008 (ITA NO. 776/2007). PURSUANT TO THE TRIBUNAL ORDER IN ITA NO. 776/2007 DATED 25.7.2008 FRESH ASSESSMENT ORDER WAS PASSED U/S 143 (3) / 148 / 254 VIDE ORDER DATED 30.12.2009. IN THE FRES H ASSESSMENT ORDER, PENALTY PROCEEDINGS U/S 271(1) WAS SEPARATELY INITIATED FO R CONCEALMENT OF INCOME. THEREFORE THE PRESENT PENALTY ON THE BASIS OF THE O RIGINAL ASSESSMENT ORDER DATED 23.3.2006 DOES NOT SURVIVE FOR ADJUDICATION A ND THE SAME IS QUASHED. IT ORDERED ACCORDINGLY. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS AL LOWED. THIS DECISION WAS PRONOUNCED IN THE OPEN C OURT ON 22 ND AUGUST, 2014. SD/- SD/- (T.S. KAPOOR) ( GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 22 ND AUGUST, 2014 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT ITA NO. 2016/DEL/13 4 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR, ITAT