Shri Sabbir Haji Sattar Kunda, Surat V. The Income Tax Officer, Ward 1(2)(6), Surat

ITA 2739/AHD/2016

• Counselvise Citation: [2018] 111 COUNSELVISE.COM (IT) 1920 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 24-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: BHARAT P JHAVERI
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

SABBIR HAJI SATTAR KUNDA V. ITO1(2)(6) SURAT /I.T.A. NO.2739/AHD/2016/A.Y. 09-10 PAGE 1 OF 2 INCOM TAX APPELLATE TRIBUNAL-SURAT-BENCH-SURAT BEFORE C .M. GARG, JM & O. P. MEENA, AM I.T.A. NO. 2739/AHD/2016: ASSESSMENT YEAR: 2009-10 SHRI SABBIR HAJI SATTAR KUNDA 45-46, HASIM ESTATE UDHNA MAIN ROAD SURAT PAN:ADWPK8030H V. INCOME TAX OFFICER WARD 1(2)(6) SURAT APPELLANT /RESPONDENT ASSESSEE BY SHRI BHARAT P. JHAVERI, ADVOCATE REVENUE BY SHRI R.P. RASTOGI, JCIT SR. D.R. DATE OF HEARING 21 .0 3 .2018 DATE OF PRONOUNCEMENT 21 .0 3 .2018 ORDER PER O. P. MEENA, AM 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-II, SURAT (IN SHORT CIT(A)) DATED 05.07.2016 AND RELATES TO ASSESSMENT YEAR 2009-10, IN CONFIRMING PENALTY OF RS.2,55,504 UNDER SECTION 271(1)(C) OF THE ACT. 2. AT THE OUTSET OF HEARING BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE ON WHICH PENALTY WAS LEVIED HAS BEEN SET-ASIDE BY THE TRIBUNAL THE FILE OF AO FOR FRESH CONSIDERATION, VIDE ITA NO. 1630/AHD/2013 DATED 07.07.2016 FOR THE ASSESSMENT YEAR 2009-10. HENCE, PENALTY IS NOT EXIGIBLE. SABBIR HAJI SATTAR KUNDA V. ITO1(2)(6) SURAT /I.T.A. NO.2739/AHD/2016/A.Y. 09-10 PAGE 2 OF 2 3. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE OF ADDITION OF RS. 7,20,000 MADE UNDER SECTION 41(1) ON WHICH PENALTY LEVIED STANDS SET ASIDE BY THE TRIBUNAL AS MENTIONED ABOVE TO THE FILE OF THE AO FOR FRESH DECISION. THUS, THE ISSUE ON WHICH PENALTY IS LEVIED IS NO LONGER SURVIVED; THEREFORE, PENALTY LEVIED IS NOT MAINTAINABLE AS OF NOW. ACCORDINGLY, WE DELETE THE PENALTY SO LEVIED SUBJECT TO CONDITION THAT THE AO IS FREE TO RE-INITIATE PENALTY PROCEEDINGS UNDER SECTION 271(1) (C) OF THE ACT, ON FINALIZATION OF SET-ASIDE ASSESSMENT PROCEEDINGS, IF THE CIRCUMSTANCES SO WARRANT OR HE THINKS FIT. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. 5. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.03.2018 SD/- SD/- (C.M. GARG) (O.P.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER SURAT: DATED21.03.2018/OPM COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT