Deputy Commissioner Of Income Tax, Circle- 3(1)(2), Bangalore V. M/s. Hajee A P Bava & Company Constructions Private Limited, Bangalore

ITA 2490/BANG/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1003 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-04-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 05-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B K PANDA BEN GALURU
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B. R. BASKARAN, ACCOUNTANT MEMBER IT A NO. 2 4 90 /BANG/201 9 ASSESSMENT YEAR: 20 14 - 15 THE DCIT, CIRCLE 3(1)(2), BANGALORE. VS. M/S. HAJEE A P BAVA AND COMPANY CONSTRUCTIONS PVT. LTD., HAPBCO TOWER, 32 (OLD NO.1355/B), 9 TH MAIN ROAD, RPC LAYOUT, VIJAYANAGAR, BANGALORE 560 104. PAN: AACCH 1218 C APPELLANT RESPONDENT REVENUE BY : SHRI. B. K. PANDA , CIT(DR)(ITAT), BEN GALURU. A SS ESSEE BY : SMT. SUSAN MATHEW , CA DATE OF HEARING : 19 . 0 4 .202 1 DATE OF PRONOUNCEMENT : 20 . 0 4 .202 1 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED 24.09.2019 OF CIT(A)-3, BENGALURU, RELATING TO ASSESSMENT YEAR 2014-15. 2. IN THIS APPEAL, THE REVENUE HAS CHALLENGED THE ORDER OF CIT(A) WHEREBY THE CIT(A) CANCELLED THE ORDER OF THE AO IMPOSING PENALTY ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT). AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE POINTED OUT THAT PENALTY WAS IMPOSED ON THE ASSESSEE IN RESPECT OF ADDITION OF RS.11,45,33,140/- WHICH WAS CLAIMED BY THE ASSESSEE AS A BAD DEBT WRITTEN OFF. THE AO DID NOT ALLOW THE CLAIM OF THE ASSESSEE. THE CIT(A) CONFIRMED THE ORDER OF THE AO. ON FURTHER ITA NO.2490/BANG/2019 PAGE 2 OF 3 APPEAL, THE HONBLE ITAT IN ITA NO.2153/BANG/2017 DATED 20.04.2018 CONFIRMED THE ORDER OF THE CIT(A). THE ASSESSEE FILED AN APPEAL BEFORE THE HONBLE HIGH COURT IN ITA NO.555/2018 AND THE HONBLE HIGH COURT BY ITS JUDGMENT DATED 19.06.2020 SET ASIDE THE ORDER OF THE TRIBUNAL AND REMANDED THE ISSUE TO THE AO FOR FRESH CONSIDERATION. THE AO PASSED AN ORDER DATED 30.06.2020 WHEREBY HE DELETED THE ADDITION MADE BUT RESERVED HIS RIGHT TO EXAMINE THE ISSUE IN THE SET ASIDE ASSESSMENT PROCEEDINGS. IN VIEW OF THE ABOVE, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE SHOULD BE DISMISSED. LEARNED DR ON THE OTHER HAND SUBMITTED THAT SINCE THE ORDER OF THE AO HAS BEEN SET ASIDE BY THE HONBLE HIGH COURT, THE AO SHOULD BE GIVEN LIBERTY TO INITIATE PENALTY PROCEEDINGS IN THE SET ASIDE PROCEEDINGS TO BE PASSED PURSUANT TO THE ORDER OF THE HONBLE HIGH COURT. 3. WE HAVE GIVEN A CAREFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND ARE OF THE VIEW THAT SINCE THE ORDER OF THE AO BASED ON WHICH THE PENALTY WAS IMPOSED ON THE ASSESSEE HAS BEEN SET ASIDE FOR FRESH CONSIDERATION, THE ORDER IMPOSING PENALTY ON THE BASIS OF THE ADDITION MADE IN THE ORIGINAL ORDER OF ASSESSMENT IS NOT SUSTAINABLE. HOWEVER, AS SUBMITTED BY THE LEARNED DR, THE AO IS AT LIBERTY TO INITIATE PENALTY PROCEEDINGS IN THE SET ASIDE PROCEEDINGS PURSUANT TO THE ORDER OF THE HONBLE HIGH COURT. WITH THESE OBSERVATIONS, WE DISMISS THE APPEAL OF THE REVENUE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- BANGALORE, DATED: 20.04.2021. /NS/* (B. R. BASKARAN ) ( N. V. VASUDEVAN) ACCOUNTANT MEMBER VICE PRESIDENT ITA NO.2490/BANG/2019 PAGE 3 OF 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.