Bhagaji Rabhaji Kharmale, Ahmednagar V. Income tax Officer,

ITA 2745/PUN/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5190 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-12-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDENDU DAS
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 2745 /P U N/201 6 / ASSESSMENT YEAR : 20 1 0 - 11 BHAGAJI RABHAJI KHARMALE D.K. BHANDARI, C/O B.D. JANGALE, C - 117, RAJ CHAMERS, NEAR KOTHALA STAND, AHMEDNAGAR 414001 . / APPELLANT PAN: ABJPK9377L VS. THE INCOME TAX OFFICER, WARD 4, AHMEDNAGAR . / RESPONDENT / APPELLANT BY : NONE / RESPONDENT BY : S HRI SUDENDU DAS / DATE OF HEARING : 13 . 12 .201 8 / DATE OF PRONOUNCE MENT: 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 0 2 . 06 .201 6 RELATING TO ASSESSMENT YEAR 20 1 0 - 11 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: - ITA NO. 2745 /P U N/20 1 6 BHAGAJI RABHAJI KHARMALE 2 1. THE LEARNED CIT (APPEALS) - 2, HAS ERRED IN CONFIRMING THE ORDER OF LEVY OF PENALTY U/S 271(1) (C) PASSED BY THE I.T.O., WARD - 04, AHMEDNAGAR. IT IS PRAYED THAT, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND APPRECIATING THE GENUINENESS OF THE SAME THE PENALTY LEVIED MAY PLEASE BE DROPPED. 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF ASSESSEE NOR ANY APPLICATION WAS FILED FOR ADJOURNMENT. HOWEVER, BECA USE OF THE ISSUE INVOLVED, WE PROCEED TO DECIDE THE PRESENT APPEAL AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ASSESSEE IS IN APPEAL AGAINST LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. 5. THE PRELIMINARY ISSUE RA ISED IN THE PRESENT APPEAL IS NON - RECORDING OF PROPER SATISFACTION BY THE ASSESSING OFFICER WHILE INITIATING PENALTY PROCEEDINGS IN THE CASE. 6. THE PERUSAL OF ASSESSMENT ORDER WITH SPECIAL REFERENCE TO PARA 4, PENALTY PROCEEDINGS WERE INITIATED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS AND THEREBY CONCEALING THE INCOME AT 3,24,593/ - AND AGRICULTURAL INCOME OF 1 LAKH. THE ASSESSING OFFICER WHILE LEVYING PENALTY THOUGH HAS LEVIED PENALTY FOR FUR NISHING INACCURATE PARTICULARS OF INCOME ONLY, HOWEVER, THE SATISFACTION RECORDED FOR INITIATING PENALTY PROCEEDINGS IS NOT PROPER IN THE PRESENT CASE AS IT IS INCUMBENT UPON THE ASSESSING OFFICER TO ISSUE SHOW CAUSE NOTICE TO THE ASSESSEE AS TO SATISFACTI ON OF ONE OF THE LIMBS OF SECTION 271(1)(C) OF THE ACT. IN THE ABSENCE OF PROPER SHOW CAUSE NOTICE BEING GIVEN TO THE ASSESSEE, THERE IS NO MERIT IN LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. ITA NO. 2745 /P U N/20 1 6 BHAGAJI RABHAJI KHARMALE 3 7. WE FIND SUPPORT FROM THE RATIO LAID DOWN BY T HE HO NBLE 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 PROCEEDINGS 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 271(1)(C) OF THE ACT. THE GROUND OF APPEAL RAISED BY ASSESSEE IS THUS, ALLOWED. 8 . IN THE RESUL T, 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 - I , PUNE ; 5. 6. , , / DR B , ITAT, PUNE ; / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE