Dy.CIT, Central Circle-1, Vadodara V. Pranav Jayantilal Panchal, Vadodara

ITA 237/AHD/2022

AI Insights

The case involves two appeals by the Revenue against the orders of the Commissioner of Income Tax (Appeals)-12, Ahmedabad, which pertained to the assessment years 2012-13 and 2013-14. The primary issue was the deletion of a penalty of Rs.2,97,76,790 imposed under section 271(1)(c) of the Income Tax Act, 1961, by the Assessing Officer (AO) for alleged unexplained investment in land purchase. The CIT(A) had deleted the penalty, noting that the ITAT had previously deleted the quantum additions in the appellant's favor. The Revenue challenged this decision, but the Tribunal found no basis for the penalty following the deletion of the substantive additions in the quantum appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133493 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 15-06-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘A’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SMT. MADHUMITA ROY, JUDICIAL MEMBER, JUDICIAL MEMBER ITA No.237 and 238/Ahd/2022 Assessment Year :2012-13 and 2013-14 DCIT, Cent.Cir.1 Vadodara. Vs. Shri Pranav Jayantilal Panchal 607, 6 th Floor, Aaykar Bhavan Race Course circle Vadodara 390 007 PAN : ADXPP 0629 C 0 अपीलाथ / (Appellant) यथ /(Respondent) Assesseeby : Written Submissions Revenue by : Ms.Saumya Pandey Jain, Sr.DR स ु नवाई क तार ख/Date of Hearing : 25/07/2023 घोषणा क तार ख /Date of Pronouncement: 02/08/2023 आदेश/ O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present two appeals have been filed by the Revenue against orders passed by the ld.Commissioner of Income Tax (Appeals)-12, Ahmedabad [hereinafter referred to as “Ld.CIT(A)”] of even dated 24.3.2022 passed under section 250(6) of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short]for the Asst.Year2012- 13 and 2013-14 vide which the ld.CIT(A) deleted penalty imposed by the AO under section 271(1)(c) of the Act. 2. In both the appeals, the Revenue has raised identically worded grounds except variation in quantum of penalty imposed under section 271(1)(c) of the Act. Therefore, we dispose of both the ITA No.237 & 238/Ahd/2022 2 appeals by taking ground raised in ITA No.237/Ahd/2022 for Asst.Year 2012-13 as under: i) On the facts and in the circumstances of the case and in law, the ld.CIT(A) has erred in deleting the penalty levied by the AO under section 271(1)(c) of Rs.2,97,76,790/- based on technical grounds taken by the assessee without appreciating and discussing the merits of the case deleted the entire quantum additions and also without appreciating that the decision of the Hon'ble ITAT was also based on technical issue, which is subjudice before Hon’ble Apex Court. ii) It is, therefore, prayed that the order the AO may be restored to the above of the case and in law, the Ld.CIT(A) has erred in assessing Officer under Sec. 271.(l)(c) of the Act of grounds taken by the assessee, without appreciating and by simply observing that the Hon’ble ITAT has and also without appreciating that the decision of the technical issue, which is subjudice before the Hon'blethe Ld. CIT(A)-4, Surat may be set aside and that of extent. 3. For disposing of only the issue of penalty imposed under section 271(1)(c) of the Act by the AO, it is sufficient for us to briefly note the fact that the addition on which penalty has been imposed by the AO was on account of substantive addition of Rs.9,63,65,000/-made in respect of unexplained investment in purchase of land in Kotali. This addition was challenged by the assessee before the ITAT. During the pendency of proceedings before the ITAT, the AO initiated penalty proceedings under section 271(1)(c) of the Act and imposed the impugned penalty. The assessee again challenged the same before the first appellate authority. In the meanwhile, the Tribunal decided the quantum of appeals of the assessee in IT(SS)A.No.265 & 266/Ahd/2019 for the above two assessment years and deleted both quantum additions vide common order dated 22.11.2021. A copy of the order of the Tribunal is placed on record. 4. In the penalty proceedings before the first appellate authority, the assessee brought to the notice the factum of Tribunal’s order being passed in quantum appeals of the assessee, vide which the ITA No.237 & 238/Ahd/2022 3 Tribunal had deleted both the additions. Taking note of the said decision in quantum proceedings he deleted penalty imposed under section 271(1)(c) of the Act and allowed the appeals of the assessee. His brief finding in this regard contained in para-8 of the impugned order reads as under: “8. Thus, it is clear that Hon’ble ITAT has deleted the entire additions made by the AO with respect to the quantum appeal based on legal grounds taken by the appellant before it. Once the quantum additions are deleted, the penalty levied has no legs to stand on. Hence, the AO is directed to delete the penalty of Rs.2,97,76,790/- under section 271(1)(c) of the Act. Ground of appeal No.2 is allowed.” 5. The ld.DR has not contested the above factual aspect, while the assessee has filed a written submission vouching the above facts. 6. On due consideration of the facts and circumstances, and the submissions of both the parties, and the order of the ITAT cited (supra) the Tribunal vide order dated 22.11.2021 (supra) having deleted the additions on which penalty was levied u/s 271(1)(c) of the Act for both the assessment years, there remains no basis for levy of penalty. Both the appeals of the Revenue filed in the present case have become infructuous, and we dismiss accordingly. 7. In the result, both the appeals of the Revenue are dismissed. Order pronounced in the Court on 2 nd August, 2023, 2023 at Ahmedabad. Sd/- Sd/- (MADHUMITA ROY) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 02/08/2023 vk*