Vijay Kumar Sood, Shimla V. DCIT, Chandigarh

ITA 262/CHANDI/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5176 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 09-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Keywords: Unexplained expenditure
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 262/CHD/2017 ASSESSMEN T YEAR: 2010-11 SHRI VIJAY KUMAR SOOD, VS. THE DCIT, S/O SHRI MAST RAM SOOD, CENTRAL CIRCLE-II, SANJAY SADAN, CHANDIGARH. CHOTTA SHIMLA. PAN NO. ADNPS8077K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI RAVI SARANGAL, CIT-DR DATE OF HEARING : 05.04.2017 DATE OF PRONOUNCEMENT : 18.05.2017 ORDER PER MS. DIVA SINGH,JM THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 22.11.2016 OF CIT (A)-3 G URGAON PERTAINING TO 2010-11 ASSESSMENT YEAR WHEREIN THE PENALTY IMPOSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE ACT OF INCOME TAX ACT HAS BEEN UPHELD IN THE APPELLATE PROCEEDINGS BY AN EX-PARTE ORDER BY THE LD. CIT (A). 2. THE LD. AR AT THE TIME OF HEARING SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY VIRTUE OF THE ORDER PASSED B Y THE ITAT IN QUANTUM PROCEEDINGS WHEREIN THE ADDITION MADE IN THE YEAR UNDER CONSIDERATION HAS BEEN DELETED IN TOTAL. IN SUPPORT OF THE SAID SUBMISSION, C ONSOLIDATED ORDER OF THE ITAT DATED 22.03.2017 IN ITA 307 TO 312/CHD/2014 PERTAINING TO 2006-07 TO 2011-12 ASSESSMENT YEAR WAS RELIED UPON. I NVITING ATTENTION TO THE ASSESSMENT ORDER DATED 22.03.2013 PASSED UNDER SE CTION 153A(1)(B) READ WITH SECTION 143(3), ATTENTION WAS INVITED TO THE FACT THA T ADDITION OF RS. 1,43,53,963/- AS UNEXPLAINED EXPENDITURE UNDER SECTION 69C OF THE ACT WAS ADDED TO THE INCOME OF THE ASSESSEE. INVITING ATTENTION TO THE PENALTY ORDER IT WAS SUBMITTED THAT ON ACCOUNT OF THIS FACT, PENALTY UNDE R SECTION 271(1)(C) OF THE ACT WAS IMPOSED. THE ITAT IN QUANTUM PROCEEDINGS, IN THE AFORESAID ORDER CONSIDERING THE ISSUE IN PARA 11 AND 12, DELETED TH E ADDITION RELYING 2 UPON THE FINDING GIVEN IN 2007-08 ASSESSMENT YEAR HOLDING THAT THE EXPENDITURE MENTIONED IN THE SEIZED PAPERS WAS DULY REFLE CTED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. ACCORDINGLY, IN THE CIRCUMSTANC ES, IT WAS HIS PRAYER THAT THE PENALTY ORDER CAN NOT SURVIVE. 3. AT THE TIME OF HEARING, A CONSOLIDATED ADJOURNMENT A PPLICATION IN THE PRESENT CASE ALONGWITH ITA 263 & 264/CHD/2017 WAS MOV ED. SINCE IN THE FACTS OF THE PRESENT CASE, THE ORDER OF THE ITAT PASS ED IN THE QUANTUM PROCEEDINGS WAS AVAILABLE ON RECORD, THE ADJOURNMENT WAS GRANTED ON THE REMAINING TWO APPEALS IN THE CAUSE LIST AND THE PRESENT A PPEAL WAS PASSED OVER IN ORDER TO GIVE TIME TO THE REVENUE TO CONSIDER T HE ORDER OF THE ITAT. LD. CIT-DR ON GOING THROUGH THE QUANTUM ORDER IN THE SECO ND ROUND AGREED THAT THE ADDITION HAS BEEN DELETED BY THE ITAT IN THE QUANTUM PROCEEDIN GS IN TOTO. THUS THE FACTUAL SUBMISSIONS OF THE LD. AR WERE NOT DISPUTED. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE FACTS WHERE THE ADDITION IN THE QUANT UM PROCEEDINGS STANDS DELETED BY THE ITAT, WE FIND THAT THE PRAYER OF THE ASS ESSEE THAT THE PENALTY ORDER CANNOT STAND, IS A SETTLED LEGAL POSITION. HOLDING TH E PENALTY ORDER AS INFRUCTUOUS, THE APPEAL OF THE ASSESSEE IS ALLOWED. THE SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MAY, 2017. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 18 TH MAY, 2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH. 3 DATE 1. DRAFT DICTATED 05.04.2017 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 07.04.2017 SR.PS 3. APPROVED DRAFT COMES TO THE SR.PS/PS 11.04.2017/ 14.04.2017 SR.PS 4. ORDER SIGNED AND PRONOUNCED ON 5 FILE SENT TO THE BENCH CLERK SR.PS 6. DATE ON WHICH FILE GOES TO THE AR 7. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 8. DATE OF DISPATCH OF ORDER.