Dhaval Maheshbhai Ganatra, RAJKOT V. Income Tax Officer, Ward 3(1)(1)

ITA 246/RJT/2022

AI Insights

The case involves an appeal by Dhaval Maheshbhai Ganatra against a penalty order under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2015-2016. The penalty was initially imposed based on certain quantum additions made during the assessment proceedings. However, these additions were set aside by the ITAT in a related quantum appeal (ITA No. 245/Rjt/2022), leading to the current appeal being deemed infructuous. The Tribunal acknowledged the delay in filing the appeal due to the COVID-19 pandemic and accepted the condonation of delay. The Tribunal's decision emphasized that the penalty could not stand independently of the quantum additions, which were the basis for the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134536 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 13-10-2022
• Other Referred Cases: Cognizance for Extension of Limitation, reported in 125 taxmann.com 151
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside
• Section: 271(1)(c)

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ RAJKOT BENCH”, RAJKOT BEFORE Ms SUCHITRA KAMBLE, JUDICIAL MEMBER, And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 246/Rjt/2022 िनधाŊरण वषŊ/Asstt. Year: 2015-2016 Dhaval Maheshbhai Ganatra, Puka Park, B/H. Hudco Police Chowky, Kothariya Main Road, Rajkot-360002. PAN: AOMPG8373G Vs. Income Tax Officer, Ward 3(1)(1), Rajkot. (Applicant) (Respondent) Assessee by : Written Submission Revenue by : Shri B.D. Gupta, Sr. D.R सुनवाई की तारीख/Date of Hearing : 19/01/2023 घोषणा की तारीख /Date of Pronouncement: 10/02/2023 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeal), Rajkot, dated 22/04/2017 arising in the matter of penalty order passed under s. 271(1)(c) of the Income Tax Act, 1961 (here- in-after referred to as "the Act") relevant to the Assessment Year 2015-2016. ITA no.246/Rjt/2022 Asstt. Year 2015-16 2 2. The Ld. AR at the outset brought to our notice that there is a delay in filing the appeal of the assessee for 297 days which is falling during the covid-19 period therefore the same should be condoned. The Ld. AR in support of his contention regarding the delay in filing the appeal has also filed the affidavit which is available on record. 3. The Ld. DR did not raise any objection on the condonation of delay in filing the appeal by the assessee. Accordingly, we condone the delay in filing the appeal by the assessee in pursuance to the judgment of Hon’ble SC in the case of Cognizance for Extension of Limitation, reported in 125 taxmann.com 151 and proceed to adjudicate the issue on merit. 4. At the outset, we note that the quantum addition made by the authority below has already been set aside to the file of the AO for fresh adjudication in ITA No.245/Rjt/2022 vide order dated 3-2-2023. Once, the quantum addition has been set aside to the file of the AO, the question of levying penalty under the provision of section 271(1)(c) of the Act does not arise. It is for the reason that the penalty is levied under the provision of section 271(1)(c) of the Act, based on the quantum additions made during the assessment proceedings which have been set aside. Thus, in the given case, the penalty order based u/s 271(1)(c) of the Act is not sustainable. As such, the AO will initiate the fresh penalty proceedings against the assessment order to be made in pursuance to the direction of the ITAT in the quantum appeal as discussed above. Hence, the ground of appeal of the assessee is dismissed as infructuous. 5. In the result, the appeal filed by the assessee is dismissed as infructuous. Order pronounced in the Court on 10/02/2023 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 10/02/2023 Manish