D.C.I.T. Amravati Circle, Amaravati V. THE AMRAVATI ZILLA PARISHAD SHIKSHAK SAHAKARI BANK LTD., Amaravati

ITA 239/NAG/2018

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Amravati Circle against the Amravati Zilla Parishad Shikshak Sahakari Bank Ltd., concerning a penalty imposed for the assessment year 2013-14. The penalty of Rs.82,73,704 was initially imposed by the Assessing Officer but was later deleted by the CIT(A)-1, Nagpur. The Revenue challenged this deletion, arguing that the penalty was justified. However, the Tribunal found procedural flaws in the issuance of the show cause notice by the Assessing Officer, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131923 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-08-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 26-09-2018
• Other Referred Cases: Mohd. Farhan A. Shaikh vs. DCIT [2021] 434 ITR 1 (Bom.) (FB)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KAPIN HIRANI
• Section: 271(1)(c); 274

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.239/Nag./2018 Assessment Year 2013-2014 D.C.I.T. Amravati Circle, Amravati vs. The Amravati Zilla Parishad Shikshak Sahakari Bank Ltd. Congress Nagar Road, Near Rly. Bridge, Amravati-444606 PAN: AAAAT0593N (Appellant) (Respondent) For Assessee : Shri Kapin Hirani, CA For Revenue : Shri Kailash Kanojiya, Sr. DR Date of Hearing : 30.08.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M. This Revenue’s appeal for A.Y. 2013-14, arises against the CIT(A)-1, Nagpur’s order dated 03.07.2018, passed in Case No.CIT(A)-1/10300/2016-17, in proceedings under section 271(1)(c) of the Income Tax Act, 1961 [“In short Act”]. 2. Heard both the parties. Case file perused. 3. Coming to the Revenue’s sole substantive grievance challenging the deletion of penalty of Rs.82,73,704/- imposed u/s 271(1)(c) by the Assessing Officer’s corresponding order dated 06.09.2016 and reversed in the CIT(A)’s lower appellate discussion, we note at the outset that the former’s show cause notice issued 2 ITA.No.239/Nag./2018 DCIT vs. The Amravati Zilla Parishad Shikshak Sahakari Bank Ltd. under Section 274 of the Act dated 03.03.2016 had nowhere specified as to whether this is an instance of concealment or furnishing of inaccurate particulars of income. That being the case, we quote Mohd. Farhan A. Shaikh vs. DCIT [2021] 434 ITR 1 (Bom.) (FB) that such a failure at the Assessing Officer’s behest vitiates the entire proceedings. 4. We accordingly reject the Revenue’s vehement arguments supporting the impugned penalty in very terms. Ordered accordingly. 5. This Revenue’s appeal is dismissed in above terms. Order pronounced in the open court on 22.09.2023 Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 22.09.2023 S.K.SINHA True Copy Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Nagpur Bench, Nagpur 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.