ITO, Chandigarh V. Sh. Gurbax Singh Bains, Manimajra

ITA 33/CHANDI/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0982 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 09-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AKANSHA GOYAL
• Section: 69; 27

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.33 /CHD/2013 (ASSESSMENT YEAR : 2006-07) THE INCOME TAX OFFICER, VS. SH.GURBAX SINGH BAIN S, WARD 3(4), # 5892, MHC, CHANDIGARH. MANIMAJRA. PAN: AAPPB3751N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AKHILESH GUPTA, DR RESPONDENT BY : MS.AKANSHA GOYAL DATE OF HEARING : 05.03.2013 DATE OF PRONOUNCEMENT : 08.03.2013 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE CIT (APPEALS), CHANDIGARH DATED 17.10.2012 RELATING TO ASSESSMENT YEAR 2006-07 AGAINST THE PENALTY LEVIED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPE AL: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT (APPEALS) IN APPEAL NO.756/10/11, HAS ERRED IN DELETING THE PENALTY OF RS.9,40,650/- AND ORDER IS NOT ACCEPTABLE ON THE FOLLOWING GROUNDS OF APPEAL:- 1. THE DECISION OF LD. CIT(A) IS NOT ACCEPTABLE, AS THE PENALTY U/S 271(1)(C) IS DEPENDENT/BASED UPON THE ADDITION OF RS.30,00,000/- MADE BY THE AO U/S 69A OF THE IT ACT AND QUANTUM APPEAL BEING CONFIRMED BY TH E LD. CIT(A), THOUGH SUBSEQUENTLY DELETED BY THE HON' BLE ITAT AS THE MATTER IS ALIVE AND PENDING BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT. 2 2. THE CONSISTENCY OF THE ISSUE DEMANDS FILING OF A PPEAL AGAINST THE ORDER OF THE LD. CIT(A) CANCELING THE PENALTY U/S 271(1)(C), PARTICULARLY WHEN THE MATTER OF QUANTUM ADDITION IS ALIVE AND IS PENDING ADJUDICATI ON BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT. 4. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ISSUE IN QUANTUM PROCEEDINGS HAS BEEN DECIDED IN FA VOUR OF THE ASSESSEE BY THE TRIBUNAL AND CONSEQUENTLY THERE IS NO MERIT IN LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. 5. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF THE ASSESSING OFFICER. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSMENT IN THE CASE WAS COMPLETED BY REJECTING T HE EXPLANATION OF THE ASSESSEE IN RESPECT OF SOURCE OF DEPOSIT OF RS.30 L ACS IN THE BANK ACCOUNT OF THE ASSESSEE AND ADDITION UNDER SECTION 69 WAS M ADE. THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT. THE CIT (APPEALS) UPHELD THE ADDITION TO THE EXTENT OF RS.2 7,72,000/- AND PURSUANT TO THE SAME THE ASSESSING OFFICER LEVIED P ENALTY U/S 271(1)(C) OF THE ACT AT RS.9,40,650/-. HOWEVER, THE QUANTUM ADDITION OF RS.27,72,000/- WAS DELETED BY THE TRIBUNAL VIDE ORD ER DATED 21.6.2011 IN ITA NO.273/CHD/2010 RELATING TO ASSESSMENT YEAR 200 6-07 IN ASSESSEES OWN CASE. IN VIEW OF THE ADDITION BEING DELETED IN THE HANDS OF THE ASSESSEE WE FIND NO MERIT IN LEVY OF PENALTY U/S 27 1(1)(C) OF THE ACT ON THE AFORESAID ADDITION. UPHOLDING THE ORDER O F THE CIT (APPEALS) WE 3 DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE . 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF MARCH, 2012. SD/- SD/- (T.R. SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 8 TH MARCH, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH