Sawant Transport Pvt Ltd, Ahmednagar V. Assistant Commissioner of Income tax, Ahmednagar

ITA 267/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5195 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 02-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 2 6 7 /P U N/201 7 / ASSESSMENT YEAR : 20 1 2 - 1 3 SAWANT TRANSPORT PVT. LTD., 40A, BHAJIPALA MARKET, MARKET YARD, AHMEDNAGAR 414001 . / APPELLANT PAN: A A PCS7409F VS. THE ASST. COMMISSIONER OF INCOME TAX, AHMEDNA GAR CIRCLE, AHMEDNAGAR . / RESPONDENT / APPELLANT BY : NONE / RESPONDENT BY : S HRI SUDHENDU DAS / DATE OF HEARING : 13 . 12 .201 8 / DATE OF PRONOUNCEMENT: 05 . 0 2 .201 9 / ORDER PER SUSHMA CHOWLA, J M : THE APPEAL FILED BY ASSESSEE IS AGAINST ORDER OF CIT (A) - 2 , PUNE , DATED 05 . 1 0 .201 6 RELATING TO ASSESSMENT YEAR 20 1 2 - 1 3 AGAINST LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL: - 1. THE LEARNED CIT(A) ERRED ON FACTS AND IN LAW IN UPHOLDING PENALTY U/S 271(1)(C) OF RS.6,78,000/ - . HE FAILED TO APPRECIATE THE FACTS AND CIRCUMSTANCES OF THE CASE IN ITS PROPER PERS PECTIVE. THE LEARNED CIT(A) FURTHER FAILED TO APPRECIATE THE ARGUMENTS AND CONTENTIONS ADVANCED IN THIS BEHALF. ITA NO. 267 /P U N/20 1 7 SAWANT TRANSPORT PVT. LTD. 2 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF ASSESSEE NOR ANY APPLICATION WAS FILED FOR ADJOURNMENT. HOWEVER, IN VIEW OF THE ISSU E INVOLVED, WE PROCEED TO DECIDE THE PRESENT APPEAL AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT AT 25,07,000/ - . 5. B EFORE GOING INTO THE MERITS OF SAID LEVY OF PENALTY FOR CONCEALMENT, WE REFER TO THE SATISFACTION RECORDED BY THE ASSESSING OFFICER WHILE INITIATING PENALTY PROCEEDINGS. THE ASSESSING OFFICER VIDE PARA 8 HAD HELD THE ASSESSEE TO HAVE FURNISHED INACCURATE PARTICULARS OF INCOME AND HENCE, PENALTY UNDER SECTION 271(1)(C) R EAD WITH EXPLANATION 1 OF THE ACT WAS INITIATED. IN OTHER WORDS, THE ASSESSING OFFICER HAD INITIATED PENALTY PROCEEDINGS FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND ALSO UNDER EXPLA NATION 1 WHICH DEALS WITH CONCEALMENT OF INCOME. WHILE LEVYING PENALTY FOR CONCEALMENT, THE ASSESSING OFFICER HAD HELD THE ASSESSEE TO HAVE CONCEALED PARTICULARS OF INCOME AND HELD IT TO BE FIT CASE FOR LEVY OF PENALTY FOR CONCEALMENT. IN VIEW OF NON REC ORDING OF PROPER SATISFACTION BY THE ASSESSING OFFICER WHILE INITIATING PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT, WHEREIN PENALTY WAS INITIATED FOR BOTH THE LIMBS WITH SPECIFIC MENTION OF FURNISHING OF INACCURATE PARTICULARS OF INCOME AND REA D WITH EXPLANATION 1 AND THEREAFTER, WHILE LEVYING PENALTY FOR CONCEALING THE PARTICULARS OF INCOME, WE FIND THAT IN THE ABSENCE OF PROPER SHOW CAUSE NOTICE BEING GIVEN TO THE ASSESSEE, THERE IS NO MERIT IN LEVY OF AFORESAID PENALTY UNDER SECTION 271(1)(C) OF THE ACT. ITA NO. 267 /P U N/20 1 7 SAWANT TRANSPORT PVT. LTD. 3 6. WE FIND SUPPORT FROM THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. SHRI SAMSON PERINCHERY (2017) 392 ITR 4 (BOM), WHEREIN IT WAS HELD THAT WHERE THERE IS NO PROPER SATISFACTION FOR INITIATING PENALTY PR OCEEDINGS AND IN THE ABSENCE OF PROPER SHOW CAUSE NOTICE TO THE ASSESSEE, THERE IS NO MERIT IN LEVY OF PENALTY. ACCORDINGLY, WE DELETE THE PENALTY LEVIED UNDER SECTION 27 1(1)(C) OF THE ACT. THE GROUND OF APPEAL RAISED BY ASSESSEE IS THUS, ALLOWED. 7 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THIS 5 TH DAY OF FEBRUARY , 201 9 . SD/ - SD/ - (ANIL CHATURVEDI) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 5 TH FEBRUARY , 201 9 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 2 , PUNE ; 4. THE PR. CIT - 1 , PUNE ; 5. 6. , , / DR B , ITAT, PUNE ; / GUARD FILE . / BY ORD ER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE