Shri Vasudevbhai Thacker, Bhuj V. The Assistant Commissioner of Income Tax, Central Circle-2, RAJKOT-GUJARAT

ITA 270/RJT/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2282 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-03-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 03-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Assessee Lawyers: MJ RANPURA
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI N.K. BILLAIYA , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] LATE VASUDEVBHAI R. THAKKER, L/R. SHRI NISHANT THAKKER, PROP. PURVI ESTATE AGENCY, VIJAY NAGAR, BHUJ - KUTCH PAN: AAOPT1777F (APPELLANT) VS THE ACIT, CENTRAL CIRCLE - 2, RAJKOT (RESPONDENT) REVENUE BY : S H RI C.S. ANJARIA , SR. D . R. ASSESSEE BY: S H RI M.J. RANPURA , A.R. DATE OF HEARING : 0 2 - 03 - 2 016 D ATE OF PRONOUNCEMENT : 04 - 03 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THE PRESENT APPELLANT/ LEGAL REPRESENTATIVE OF THE DECEASED ASSESSEE HAS FILED THESE FOUR APPEAL S FOR A.Y. 2003 - 04 TO 2006 - 07 , A GAINST A COMMON ORDER O F THE CIT(A) - IV, AHMEDABAD DATED 09 - 03 - 2012 AFFIR MING PENALTIES OF RS. 1,70,000/ - RS. 1,60,500/ - , RS. I T A NO . 269 TO 272 / RJT /20 12 A SSESSMENT YEAR 200 3 - 04 TO 2006 - 07 I .T.A NO. 269 TO 272 /RJT /20 12 A.Y. 2003 - 04 TO 2006 - 07 PAGE NO LATE VASUDEVBHAI R. THAKKER VS. ACIT 2 1,65,000/ - AND RS. 1,20,000/ - ; RESPECTIVELY, IN PROCEEDINGS UNDER SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. BOTH PARTIES REITERATE THEIR RESPECTIVE PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED PENALTIES HEREINABOVE. IT EMERGES THAT ALL THESE CASES ARISE FROM A SEARCH ACTION DATED 15 - 09 - 2008. THE INSTANT CASE FILE REVEALS THAT THE ASSESSEE SHRI VASUDEV R. THAKKE R EXPIRED ON 15 - 09 - 2009. THE ASSESSING OFFICER INITIATE D SECTION 153A PROCEEDINGS VIDE NOTICES DATED 29 - 01 - 2009 IN ALL THE FOUR IMPUGNED ASSESSMENT YEARS. TH E SAME FOLLOWED ASSESSEE S DEMI S E. HIS LEGAL REPRESENTATIVE FILED RETURNS IN ALL CASES ON 24 - 012 - 2009 ADMITTING UNDISCLOSED INCOMES DECLARED DURING SEAR CH. THE ASSESSING OFFICER FRAMED ASSESSMENTS ON 30 - 03 - 2010 ACCEPTING ASSESSEE S INCOME DECLARED IN THE RETURNS OF ALL THE FOUR ASSESSMENT YEARS. HE FURTHER INITIATED IMPUGNED PENALTY PROCE EDINGS IN ALL CASES U/S. 271(1)(C) OF THE ACT CULMINATING IN THE I MPUGNED ORDERS UNDER CHALLENGE BEFORE US AS INDICATED HEREINABOVE. 3. HEARD BOTH SIDES. IT HAS COME ON RECORD THAT THE ASSESSEE IN THE INSTANT CASES EXPIRED WELL BEFORE FILLING OF THE RETURN, FRAMING OF ASSESSMENTS AND INITIATION OF THE IMPUGNED PENALT Y PROCEEDINGS. WE OBSERVE IN THESE FACTS AND CIRCUMSTANCES THAT BOTH THE LO W ER AUTHORITIES HAVE ERRED IN IMPOSING PENALTIES UNDER CHALLENGE IN CASE OF A DECEASED ASSESSEE. HON BLE JURISDICTIONAL HIGH COURT IN CASE OF ACIT VS. F.P. GAEKWAD (2008) 174 TAXM ANN 551HOLDS THAT PENALTY PROCEEDINGS HAVE NOT ONLY TO BE INITIATED DURING LIFE TIME OF AN I .T.A NO. 269 TO 272 /RJT /20 12 A.Y. 2003 - 04 TO 2006 - 07 PAGE NO LATE VASUDEVBHAI R. THAKKER VS. ACIT 3 ASSESSEE BUT ALSO THE SAME MUST CONCLUDE BEFORE THE DEATH OF AN ASSESSEE. THE REVENUE S ACTION IN ALL THESE FOUR APPEALS DOES NOT FULFILL EITHER OF THE TWO ASPECTS. WE ACCORDINGLY HOLD THAT INITIATION OF THE IMPUGNED PENALTIES IS NULL AND VOID AB - INITIO. THE SAME ARE ACCORDINGLY QUASHED. 4. THESE FOUR ASSESSEE S APPEALS ARE ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 04 - 03 - 201 6 SD/ - SD/ - (N.K. BILLAIYA ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 04 /03 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT