Chhaganlal Shamlal Kirad,(Through its Legal Heir Vinayak Chhaganlal Kirad), Pune V. Income-tax Officer, Ward - 6(3), Pune

ITA 3079/PUN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9153 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c); 143(3); 40(a)(ia)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE ( THROUGH VIRTUAL COURT) BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI S.S. VISWANETHRA RAVI, JM . / ITA NO.3079/PUN/2017 / ASSESSMENT YEAR : 2006-07 CHHAGANLAL SHAMLAL KIRAD, 478, NANA PETH, PUNE 411 002. PAN : ABUPK7868B. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 6(3), PUNE. . / RESPONDENT / APPELLANT BY : SHRI NIKHIL PATHAK. / RESPONDENT BY : SHRI SUDHENDU DAS / ORDER PER S.S. VISWANETHRA RAVI, JM THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 4, PUNE DATED 29.0 9.2017 FOR A.Y. 2006-07. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL STATED TO BE ENGAGED IN THE B USINESS OF TRANSPORT UNDER THE NAME AND STYLE OF M/S. C S KIRAD. ASSESSEE FILED HIS RETURN OF INCOME FOR A.Y. 2006-07 ON 29.11.2006 DECLAR ING TOTAL INCOME OF RS.10,51,150/-. THE CASE WAS SELECTED FOR SCR UTINY AND / DATE OF HEARING : 10.08.2020 / DATE OF PRONOUNCEMENT: 10.08.2020 2 ITA NO.3079/PUN/2017 AY.NO.2006-07 THEREAFTER THE ASSESSMENT WAS FRAMED DETERMINING THE INC OME OF RS.1,64,34,580/- BY MAKING ADDITION U/S 40(A)(IA) OF RS.1,53,83,426/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CA RRIED THE MATTER BEFORE LD.CIT(A) WHO DISMISSED THE APPEAL OF ASSESSE E. THEREAFTER, ASSESSEE CARRIED THE MATTER BEFORE ITAT. I TAT VIDE ORDER DATED 23.05.2011 RESTORED THE MATTER TO THE FILE OF AO WI TH CERTAIN DIRECTIONS. PURSUANT TO THE DIRECTIONS OF ITAT, AO PASSED ORDER U/S 143(3) R.W.S. 254 OF THE ACT INTER-ALIA BY MAKING ADDITION OF RS.1,53,83,426/- AND THE TOTAL INCOME WAS DETERMINED AT RS.1,64,34,580/-. ON THE AFORESAID ADDITION OF RS.1,53,83,42 6/- AO VIDE ORDER DT.29.03.2017 PASSED U/S 271(1)(C) HELD THAT TH E ASSESSEE HAS CONCEALED HIS TAXABLE INCOME OF RS.1,53,83,426/- AND AC CORDINGLY HE LEVIED PENALTY OF RS.50,72,880/-. AGGRIEVED BY THE PEN ALTY ORDER PASSED BY AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT (A), WHO VIDE ORDER DT.29.09.2017 IN (APPEAL NO.PN/CIT(A)-4/ITO WARD-6(3 ), PUNE/10/2017-18) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING EFFECTIVE GROUND: THE LD. CIT(A) ERRED IN CONFIRMING THE PENALTY U/S 271(1)(C) ON THE INCOME OF RS.10,21,101/- @ 100/% OF THE TAX SOU GHT TO BE EVADED BY THE APPELLANT . 3. BEFORE US, AT THE OUTSET, THE LD. AR SUBMITTED THAT AGA INST THE QUANTUM ADDITION OF RS.1,53,83,426/- PASSED BY THE AO U/S 143(3) R.W.S. 254 OF THE ACT, THE MATTER WAS CARRIED BY THE AS SESSEE BEFORE THE TRIBUNAL. THE TRIBUNAL VIDE ORDER DT. 20.03.2019 (IN ITA NO.1003/PUN/2016) HAS SET ASIDE THE QUANTUM ADDITION. H E THEREFORE SUBMITTED THAT SINCE THE QUANTUM ADDITION ITSELF HAS BEEN SET ASIDE, THE PENALTY FOR CONCEALMENT OF INCOME ON SUCH ADDITION BE ALSO BE SET-ASIDE. HE ALSO PLACED ON RECORD THE COPY OF THE AFORESAID 3 ITA NO.3079/PUN/2017 AY.NO.2006-07 DECISION OF THE TRIBUNAL IN QUANTUM PROCEEDINGS AND POINTE D TO THE RELEVANT FINDING OF THE TRIBUNAL. LD. DR ON THE OTHER HA ND DID NOT CONTROVERT THE SUBMISSION OF LD.A.R. BUT HOWEVER SUPPORTE D THE ORDER OF AO. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPECT T O LEVY OF PENALTY U/S 271(1)(C) ON THE ADDITION OF RS.1,53,83,426/- U/S 40(A)(IA) OF THE ACT. WE FIND THAT THE CO-ORDINATE BENCH OF THE TRIBUNAL IN ITA NO.1003/PUN/2016 DT.20.03.2019 HAS SET ASIDE THE QUAN TUM ADDITION TO THE FILE OF AO TO DECIDE THE ISSUE AFRESH OF DISALLO WANCE U/S 40(A)(IA) OF THE ACT IN VIEW OF THE HONBLE DELHI HIGH COURTS DECISION RENDERED IN THE CASE OF CIT VS. ANSAL LANDMARK TOWNSHI P (P) LTD., REPORTED IN 377 ITR 635. THE IMPUGNED PENALTY U/S 271(1 )(C) OF THE ACT HAS BEEN LEVIED ON THE AFORESAID DISALLOWANCE U/S 40(A)( IA). WE ARE THEREFORE OF THE VIEW THAT SINCE THE QUANTUM ADDITION ITS ELF HAS BEEN SET ASIDE, THE QUESTION OF LEVY OF PENALTY ON ACCOUNT OF CONCEALMENT OF INCOME OF SUCH ADDITION ALSO BE SET ASIDE. ACCORDINGLY, W E SET ASIDE THE ORDER OF PENALTY ORDER TO THE FILE OF AO TO DECIDE IN LINE WITH THE ISSUE OF QUANTUM ADDITION. THUS, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 10 TH DAY OF AUGUST, 2020. SD/- SD/- ( ANIL CHATURVEDI ) ( S.S. VISWANETHRA RAVI) ' / ACCOUNTANT MEMBER ' / JUDICIAL MEMBER PUNE; ! DATED : 10 TH AUGUST, 2020. YAMINI 4 ITA NO.3079/PUN/2017 AY.NO.2006-07 #$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. THE CIT(A)-4, PUNE. THE PR.CIT-3, PUNE. #$% &&'( , )'( , / DR, ITAT, B PUNE; %*+,/ GUARD FILE. / BY ORDER, // TRUE COPY // -./01 / ASSISTANT REGISTRAR, ) '( , / ITAT, PUNE. .