RADIANT INDUSTRIES, Pune V. Deputy Commissioner of Income Tax, Central Circle-2(1), Pune, Pune

ITA 243/PUN/2023

AI Insights

Radiant Industries appealed against the penalties imposed by the lower tax authorities for the assessment years 2014-2015 and 2015-2016. The penalties were based on the alleged concealment of income from scrap sales, which was discovered during a search operation on January 19, 2018. The primary legal contention was whether the penalties should be applied under the general provisions of section 271(1)(c) of the Income Tax Act, 1961, or under the more specific provisions of section 271AAB(1A), which are applicable in cases following a search. The Tribunal concluded that the specific provisions of section 271AAB(1A) should apply, leading to the quashing of the penalties.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 138037 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 05-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA.Nos.243 & 244/PUN./2023 Assessment Year 2014-2015 & 2015-2016 Radiant Industries, Survey No.32/4, Behind Relax Hotel, Old Mundhwa Road, Kharadi, Pune – 411 014. Maharashtra. PAN AAJFR9352D vs., The DCIT, Central Circle-2(1), Pune – 411 037. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Suhas Bora For Revenue : Shri Sardar Singh Meena Date of Hearing : 06.04.2023 Date of Pronouncement : 12.04.2023 ORDER PER SATBEER SINGH GODARA, J.M. : These assessee’s twin appeals for assessment years 2014-2015 & 2015-2016, arise against the CIT(A), Pune-12, Pune's common Din and Order Nos. ITBA/APL/S/250/2022- 23/1048381402(1) & 1048381427(1), both dated 31.12.2022, respectively, involving proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case files perused. 2. It emerges during the course of hearing that both the learned lower authorities have imposed the impugned penalties of Rs.3,37,230/- and Rs.3,18,870/-; assessment 2 ITA.No.243 & 244/PUN./2023 Radiant Industries, Pune. year-wise, respectively. They hold the assessee to have concealed the particulars of its unaccounted taxable income derived from scrap sales which came to be declared during the course of the search in issue dated 19.01.2018 only. 3. We have given our thoughtful consideration to the instant sole issue of correctness of the impugned penalty u/s.271(1)(c) Explanation-5A which hardly applies herein once we are dealing with a search dated 19.01.2018 duly covered u/s.271AAB(1A) than a general one involved herein u/s. 271(1)(c) of the Act. 4. Faced with this situation, we quash the impugned penalties for this precise reason alone. Ordered accordingly. 5. These assessee’s twin appeals are allowed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the Open Court on 12.04.2023. Sd/- Sd/- (G.D. PADMAHSHALI) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 12 th April, 2023 VBP/- 3 ITA.No.243 & 244/PUN./2023 Radiant Industries, Pune. Copy of the Order is forwarded to: 1. The Appellant; 2. The Respondent; 3. The CIT(A), Pune. 4. 5. 6. The CCIT, Pune The DR ‘B’, ITAT, Pune Guard File BY ORDER, // True Copy // Senior Private Secretary ITAT : Pune