VIGHNAHAR DEVELOPERS, NAVI MUMBAI V. ITO WD 2, PANVEL

ITA 3051/MUM/2012

• Counselvise Citation: 305119914 RSA 2012
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 04-12-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 04-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: RITIKA AGARWAL

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI . . , , , BEFORE SHRI P.M. JAGTAP , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEM BER . / ITA NO. 3051 / MUM./ 2012 ( / ASSESSMENT YEAR : 20 0 5 06 ) M/S. VIGHNAHAR DEVELOPERS PLOT NO.5 & 6, SECTOR 14 PALM BEACH ROAD, NERUL NAVI MUMBAI 400 705 .. / APPELLANT V/S INCOME TAX OFFICER WARD 2, P ANVEL .... / RESPONDENT . / PERMANENT ACCOUNT NUMBER AAEFV7696R / ASSESSEE BY : MS. RITIKA AGARWAL / REVENUE BY : MR. SURENDRA KUMAR / D ATE OF HEARING 04 . 1 2 .2013 / DATE OF ORDER 11.12.2013 / ORDER , / PER AMIT SHUKLA , J.M. THE PRESENT APPEAL HA S BEEN PREFERRED BY THE ASSESSEE CHALLENGING THE IMPUGNED ORDER DATED 5 TH MARCH 20 12 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) I , MUMBAI, FOR THE ASSESSMENT YEAR 200 5 06 . THE SOLE DISPUTE IN THIS APPEAL IS, WHETHER OR NOT THE LEARNED COMMISSIONER (APPEALS) WAS JUSTIFIED IN CONFIRMING THE PENALTY OF ` 75,92,701, IMPOSED BY THE ASSESS ING M/S. VIGHNAHAR DEVELOPERS 2 OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ). 2 . THE LEARNED COUNSEL FOR THE ASSESSEE, MS. RITIKA AGARWAL, AT THE OUTSET, SUBMITTED THAT IN THE QUANTUM PROCEEDINGS, THE TRIBUNAL, VIDE ORDER DATED 31 ST JULY 2013, IN IT A NO.2815/MUM./2012, HAS SET ASIDE THE QUANTUM ORDER TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS) FOR DECIDING THE ISSUE AFRESH. THEREFORE, PENALTY ORDER IN RELATION TO SUCH A QUANTUM ORDER CANNOT BE SUSTAINED. 3 . THE LEARNED DEPARTMENTAL REPRESENTATIVE , ON THE OTHER HAND, SUBMITTED THAT ONCE THE QUANTUM ORDER HAS BEEN SET ASIDE TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS), THE PENALTY ORDER SHOULD ALSO BE SET ASIDE TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS), WHICH CAN BE DECIDED IN VIEW OF T HE FINDINGS GIVEN IN THE QUANTUM PROCEEDINGS. 4 . AFTER CAREFULLY CONSIDERING THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND THE ORDER PASSED BY THE TRIBUNAL, WE FIND THAT THE ASSESSEE HAS FILED BELATED APPEAL BEFORE THE LEARNED COMMISSIONER (APPEALS) IN TH E QUANTUM PROCEEDINGS AGAINST THE ASSESSMENT ORDER. THE LEARNED COMMISSIONER (APPEALS) DISMISSED THE ASSESSEES APPEAL AS BARRED BY LIMITATION . AGAINST THE SAID ORDER OF THE LEARNED COMMISSIONER (APPEALS), THE ASSESSEE PREFERRED AN APPEAL BEFORE THE TRIB UNAL, WHEREIN THE TRIBUNAL, VIDE ORDER DATED 31 ST JULY 2013, CONDONED THE DELAY IN FILING OF THE APPEAL BEFORE THE LEARNED COMMISSIONER (APPEALS) AND SET ASIDE THE MATTER BACK TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS) FOR DECIDING THE ENTIRE ISSUE S RAISED IN THE QUANTUM APPEAL AFRESH AND ON MERITS AFTER PROVIDING DUE AND EFFECTIVE OPPORTUNITY OF HEARING TO THE ASSESSEE. IN THE WAKE OF THESE FACTS THAT THE QUANTUM PROCEEDINGS HAVE BEEN RESTORED BACK TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS) A FTER CONDONING THE DELAY AND TO BE DECIDED AFRESH, THEREFORE, THE IMPUGNED PENALTY ORDER IS ALSO REMANDED BACK TO THE FILE OF THE LEARNED COMMISSIONER (APPEALS) FOR DECIDING THE SAME AFTER ADJUDICATING THE ISSUES / ADDITIONS ON MERIT S IN THE QUANTUM PROCEE DINGS AND M/S. VIGHNAHAR DEVELOPERS 3 IN THE LIGHT OF THE FINDINGS GIVEN THEREIN, THE ISSUES IN PENALTY PROCEEDINGS CAN BE DECIDED AFRESH AND IN ACCORDANCE WITH THE LAW. TILL SUCH TIME, THE PROCEEDINGS RELATING TO PENALTY WILL NOT BE ENFORCED OR WILL BE KEPT IN ABEYANCE. 5 . 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 11 TH DECEMBER 2013 ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER 2013 SD / - . . P.M. JAGTAP ACCOUNTANT MEMBER SD / - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 11 TH DECEMBER 2013 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / TH E REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI