Sunita Devi Brijimohan Taparia, Ahmednagar V. Income-tax Officer ,

ITA 2606/PUN/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4541 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 16-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PUSHPAK B MUNDADA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E BEFORE SHRI R.S. SYAL, VP AND SHRI VIKAS AWASTHY, JM / ITA NO.2606/PUN/2016 / ASSESSMENT YEAR : 2005-06 SUNITA DEVI BRIJIMOHAN TAPARIA, SARDA HOUSE, SARDA LANE, AHMEDNAGAR-414 001 PAN : AAJPT1617R .... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD-2, AHMEDNAGAR. / RESPONDENT ASSESSEE BY : SHRI PUSHPAK B. MUNDADA REVENUE BY : SHRI PANKAJ GARG / DATE OF HEARING : 29.10.2018 / DATE OF PRONOUNCEMENT : 29.10.2018 / ORDER PER VIKAS AWASTHY, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORD ER OF COMMISSIONER OF INCOME TAX (APPEALS)-2, PUNE DATED 22.07.20 16 FOR THE ASSESSMENT YEAR 2005-06 AGAINST CONFIRMING THE LEVY OF PE NALTY U/S. 271(1) (C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2 ITA NO.2606/PUN/2016 A.Y.2005-06 2. SHRI PUSHPAK B. MUNDADA APPEARING ON BEHALF OF THE ASS ESSEE SUBMITTED AT THE OUTSET THAT PENALTY U/S.271(1)(C) OF THE A CT WAS LEVIED IN RESPECT OF ADDITION OF RS.16,00,000/- ON ACCOUNT OF UNEXPLAIN ED INVESTMENT IN RE-ASSESSMENT PROCEEDINGS. THE ASSESSEE CHALLENGED TH E VALIDITY OF RE- ASSESSMENT PROCEEDINGS ALONG WITH ADDITIONS ON MERIT BEFOR E THE COMMISSIONER OF INCOME TAX (APPEALS). HOWEVER, THE ASSESSEE WAS UNSUCCESSFUL. THE ASSESSEE CARRIED THE MATTER IN APPEAL B EFORE THE TRIBUNAL IN ITA NO.308/PN/2015. THE TRIBUNAL VIDE ORDER DATED 05.0 8.2016 HELD THE RE-ASSESSMENT ORDER PASSED U/S.143(3) R.W.S.147 OF THE AC T AS INVALID. PENALTY VIDE ORDER 26.03.2015 U/S.271(1)(C) OF THE ACT WAS LEV IED IN RESPECT OF ADDITION MADE IN RE-ASSESSMENT PROCEEDINGS. NOW, THAT THE RE- ASSESSMENT PROCEEDINGS HAVE BEEN HELD TO BE BAD IN LAW BY THE TRIBUNAL, HENCE, PENALTY IS LIABLE TO BE DELETED. THE LD. AR FURNISHED A COPY OF ORDER OF THE TRIBUNAL IN ITA NO. 308/PN/2015 FOR ASSESSMENT YEAR 2005-06 DECIDED ON 05.08.2016. 3. SHRI PANKAJ GARG REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT THE TRIBUNAL HAD SET ASIDE THE ASSESSMENT ORDER PASSED U/S.143(3) R.W.S. 147 OF THE ACT. 4. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELOW PERU SED. PENALTY U/S. 271(1)(C) OF THE ACT HAS BEEN LEVIED IN RESPECT OF ADDITIO N OF RS.16,00,000/- MADE DURING RE-ASSESSMENT PROCEEDINGS. THE TRIBUNAL IN ASSESSEES APPEAL IN ITA NO.308/PN/2015(SUPRA.) HAS HELD T HE REASSESSMENT ORDER DATED 22.12.2009 PASSED U/S.143(3) R. W.S. 147 OF THE ACT AS INVALID. SINCE, THE SUBSTRATUM FOR LEVY OF PENALTY HA S BEEN ERODED; 3 ITA NO.2606/PUN/2016 A.Y.2005-06 PENALTY ARISING FROM THE ADDITION DOES NOT SURVIVE. ACCORDI NGLY, IMPUGNED ORDER IS SET ASIDE AND APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT AFTER HEARING ON MONDAY , THE 29 TH DAY OF OCTOBER, 2018. SD/- SD/- R. S. SYAL VIKAS AWAS THY VICE-PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 29 TH OCTOBER, 2018 SB !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS)-2, PUNE. 4. THE PR. CIT-1, PUNE. 5. '#$ %%&' , ( &' , )*+ , / DR, ITAT, B BENCH, PUNE. 6. $,- ./ / GUARD FILE. // TRUE COPY // (0 / BY ORDER, %1 &+ / PRIVATE SECRETARY ( &' , / ITAT, PUNE.