Amanpreet Kaur, Delhi V. ITO, Ward- 40(1), New Delhi

ITA 286/DEL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2882 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 16-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: PRABHAT KUMAR
• Keywords: Question of law; Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.286/DEL./2019 ASSESSMENT YEAR 2014-2015 SMT. AMANPREET KAUR, KP-344, MAURYA ENCLAVE, PITAMPURA, DELHI 110034 PAN BPGPK2088J VS., THE INCOME TAX OFFICER, WARD-40(1), NEW DELHI. (APPELLANT) (RESPONDENT) ITA.NO.287/DEL./2019 ASSESSMENT YEAR 2014-2015 SMT. DILPREET KAUR, KP-344, MAURYA ENCLAVE, PITAMPURA, DELHI 110034 PAN AVJPD9210C VS., THE INCOME TAX OFFICER, WARD-40(1), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEES : SHRI PRABHAT KUMAR, C.A. FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 29.08.2019 DATE OF PRONOUNCEMENT : 02.09.2019 ORDER BOTH THE APPEALS BY DIFFERENT ASSESSEES ARE DIRECTED AGAINST THE DIFFERENT ORDERS OF THE LD. CI T(A)-14, NEW DELHI, DATED 29.11.2018, FOR THE A.Y. 2014-2015 AND 2 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI. DATED 30.11.2018 FOR THE A.Y. 2014-2015, CHALLENGIN G THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT, 1961. 2. LEARNED COUNSEL FOR THE ASSESSEE WHILE ARGUING IN THE CASE OF SMT. AMANPRET KAUR REFERRED TO SHOW CAUSE NOTICE DATED 26.12.2016 ISSUED BEFORE LEVY OF PENAL TY IN WHICH A.O. HAS MENTIONED AS UNDER : HAVE CONCEALED THE PARTICULARS OF YOUR INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME IN TERMS OF EXPLANATION 1, 2, 3, 4 AND 5. 2.1. HE HAS ALSO REFERRED ANOTHER NOTICE ISSUED BY THE A.O. BEFORE LEVY OF THE PENALTY DATED 31.05.2017 IN WHICH A.O. HAS MENTIONED AS UNDER : HAVE CONCEALED THE PARTICULARS OF YOUR INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME IN TERMS OF EXPLANATION 1, 2, 3, 4 AND 5 TO SECTION 271 OF T HE I.T. ACT, 1961. 2.2. LEARNED COUNSEL FOR THE ASSESSEE IN THE CASE OF SMT. DILPREET KAUR REFERRED TO THE SIMILARLY WORDED SHOW CAUSE NOTICES ISSUED BEFORE LEVY OF THE PENALTY OF THE SAME 3 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI. DAY AND HAS SUBMITTED THAT PENALTY PROCEEDINGS ARE ILLEGAL AND LIABLE TO BE QUASHED BECAUSE IT IS NOT CLEAR WH ETHER PENALTY WAS INITIATED FOR FURNISHING INACCURATE PAR TICULARS OF INCOME OR FOR CONCEALMENT OF PARTICULARS OF INCOME. HE HAS SUBMITTED THAT ISSUE IS COVERED BY THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF PR. CIT VS. M/S. SAHARA INDIA LIFE INSURANCE COMPANY LTD., REPORTED IN 2019 (8) TMI 409 (DEL.) VIDE JUDGMENT DATED 02.08.2019 I N PARAS 21 AND 22 THE HONBLE DELHI HIGH COURT HELD AS UNDE R : 21. THE RESPONDENT HAD CHALLENGED THE UPHOLDING OF THE PENALTY IMPOSED UNDER SECTION 271(1) (C) OF THE ACT, WHICH WAS ACCEPTED BY THE ITAT. IT FOLLOWED THE DEC ISION OF THE KARNATAKA HIGH COURT IN CIT V. MANJUNATHA CO TTON & GINNING FACTORY 359 ITR 565 (KAR) AND OBSERVED THAT THE NOTICE ISSUED BY THE AO WOULD BE BAD IN LAW IF IT DID NOT SPECIFY WHICH LIMB OF SECTION 271(1) (C) THE PE NALTY PROCEEDINGS HAD BEEN INITIATED UNDER I.E. WHETHER F OR CONCEALMENT OF PARTICULARS OF INCOME OR FOR FURNISH ING OF INACCURATE PARTICULARS OF INCOME. THE KARNATAKA HIG H COURT HAD FOLLOWED THE ABOVE JUDGMENT IN THE SUBSEQ UENT 4 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI. ORDER IN COMMISSIONER OF INCOME TAX V. SSAS EMERAL D MEADOWS (2016) 73 TAXMAN.COM 241 (KAR), THE APPEAL AGAINST WHICH WAS DISMISSED BY THE SUPREME COURT OF INDIA IN SLP NO.11485 OF 2016 BY ORDER DATED 5TH AUGUST, 2016. 22. ON THIS ISSUE AGAIN THIS COURT IS UNABLE TO FIND ANY ERROR HAVING BEEN COMMITTED BY THE ITAT. NO SUBSTANTIAL QUESTION OF LAW ARISES. 2.3. HE HAS, THEREFORE, SUBMITTED THAT PENALTY IS NOT LEVIABLE IN THE MATTER. 3. THE LD. D.R. ON THE OTHER HAND RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT PENALTY IS NOT LEVIABLE IN THE MATTER . IN THE ABOVE CASES, THE A.O. ISSUED SHOW CAUSE NOTICES FOR LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT WHICH IS BAD IN LAW AS IT DID NOT SPECIFY IN WHICH LIMB OF SECTION 271(1)(C) OF THE ACT, THE PENALTY PROCEEDINGS HAD BEEN INITIATED I.E., WHETHER FOR CONCEALMENT OF PARTICULARS OF INCOME O R 5 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI. FURNISHING INACCURATE PARTICULARS OF INCOME. THE EN TIRE PENALTY PROCEEDINGS ARE, THEREFORE, VITIATED AND NO PENALTY IS LEVIABLE. ON THIS SCORE ITSELF SIMILAR VIEW IS TAKE N BY HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. M/S. SS AS EMERALD MEADOWS 73 TAXMANN.COM 241. THIS DECISION I S CONFIRMED BY THE HONBLE SUPREME COURT REPORTED IN 73 TAXMANN.COM 248. FURTHER, THE HONBLE DELHI HIGH CO URT RECENTLY VIDE ORDER DATED 02.08.2019 IN THE CASE OF PR. CIT VS. M/S. SAHARA INDIA LIFE INSURANCE COMPANY LTD., (SUPRA) FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF M/S. SSAS EMERALD MEADOWS (SUPRA) CONFIRMED CANCELLATION OF THE PENALTY. I, THEREFORE, FOLLOWIN G THE AFORECITED DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF PR. CIT VS. M/S. SAHARA INDIA LIFE INSURANC E COMPANY LTD., (SUPRA) SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. 6. IN THE RESULT, APPEALS OF ASSESSEES ARE ALLOWED . 6 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 2 ND SEPTEMBER, 2019 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH 6. GUARD FILE //BY ORDER// ASST. REGISTRAR : ITAT : DELHI BENCHES : DELHI. DATE OF DICTATION 29.08.2019 DATE ON WHICH THE TYPED DRAFT ORDER IS PLACED BEFOR E THE DICTATION MEMBER 29.08.2019 DATE ON WHICH THE APPROVAL DRAFT COMES TO THE SR. P S 2.09.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATION MEMBER FOR PRONOUNCEMENT 2.09.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. 2.09.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 2.09.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2.0 9.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER. 7 ITA.NO.286 & 287/DEL./2019 SMT. AMANPREET KAUR & SMT. DILPREET KAUR, NEW DELHI.