The Income-tax Officer, Kapurthala-I V. Sh. Jasbir Singh S/o. Sh. Jit Singh, Jalandhar Cantt

ITA 354/ASR/2012

• Counselvise Citation: 35420914 RSA 2012
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 1999-2000
• Appeal Filed On: 30-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.354(ASR)/2012 ASSESSMENT YEAR:1999-2000 PAN :AUFPS0877C INCOME TAX OFFICER, VS. SH. JASBIR SINGH KAPURTHALA-1,KAPURTHALA. S/O SH. JIT SINGH, VILLAGE DHINA, JALANDHAR CANTT (APPELLANT) (RESPONDENT) I.T.A. NO.355(ASR)/2012 ASSESSMENT YEAR:1999-2000 PAN :AUCPS9422M INCOME TAX OFFICER, VS. SH. LAKHBIR SINGH KAPURTHALA-1,KAPURTHALA. S/O SH. JIT SINGH, VILLAGE DHINA, JALANDHAR CANTT (APPELLANT) (RESPONDENT) I.T.A. NO.356(ASR)/2012 ASSESSMENT YEAR:1999-2000 PAN :AVCPS9421J INCOME TAX OFFICER, VS. SH. JOGINDER SINGH KAPURTHALA-1,KAPURTHALA. S/O SH. THAKUR SINGH, VILLAGE DHINA, JALANDHAR CANTT (APPELLANT) (RESPONDENT) APPELLANT BY:SH. TARSEM LAL, DR RESPONDENTS BY:SH.SURINDER MAHAJAN, CA DATE OF HEARING:23/10/2012 DATE OF PRONOUNCEMENT:23/10/2012 ITA NOS, 354, 355 & 356 (ASR)/2012 2 ORDER PER BENCH ; THE REVENUE HAS FILED ALL THE THREE APPEALS AGAIN ST THE CONSOLIDATED ORDER PASSED BY THE CIT(A), JALANDHAR, DATED 27.06. 2012 RELATING TO ASSESSMENT YEAR 1999-2000. AS THE ISSUE INVOLVED IN ALL THE APPEALS IS IDENTICAL, THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS RAISED BY THE REVENUE IN ITA NO.354( ASR)/2012, WHICH ARE COMMON IN OTHER APPEALS, ARE REPRODUCED AS UNDE R: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSE SSEE BY PLACING RELIANCE UPON THE DECISION OF INCOME TAX AP PELLATE TRIBUNAL, AMRITSAR BENCH, AMRITSAR, WHO HA QUASHED THE ORDER OF THE AO ON A PURELY LEGAL ISSUE AND WITHOUT CONSI DERING THE FACTS OF THE CASE ALTHOUGH THE ISSUE HAS NOT ATTAIN ED FINALITY. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LD. CIT(A) HAS ERRED IN HOLDING THE INITIATION OF PENAL TY PROCEEDING U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 AS BAD IN LAW WHEN THE LEGAL ISSUE OF SERVICE OF NOTICE UPON THE POA O F THE ASSESSEE IS UNDER DISPUTE AND DEPARTMENT HAS HOLDS THE RIGHT TO CHALLENGE THE DECISION OF ITAT BEFORE THE HONBLE P UNJAB & HARYANA HIGH COURT. 3. IT IS PRAYED THAT THE ORDER OF THE LD. CIT(A) BE SET-ASIDE AND THAT OF THE AO BE RESTORED. 4. THE APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEND OR ALTER THE GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND DI SPOSED OF. ITA NOS, 354, 355 & 356 (ASR)/2012 3 3. THE FACTS NARRATED BY THE REVENUE ARE NOT DISPUT ED BY BOTH THE PARTIES. THEREFORE, THERE IS NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 4. AT THE TIME OF HEARING SH. SURINDER MAHAJAN, CA, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS BENCH VIDE ORDER DATE D 21 ST MAY, 2012 IN ASSESSEES OWN CASES IN THE QUANTUM APPEALS, HAS QUA SHED THE ASSESSMENTS IN DISPUTE BY ALLOWING THE APPEALS FILED BY THE ASSESS EES I.E. IN ITA NO. 190(ASR)/2010 IN THE CASE OF SH. JASBIR SINGH NRI T HROUGH SH. JARNAIL SINGH, POA, JALANDHAR VS. ITO, KAPURTHALA, IN ITA NO.191(A SR)/2010 IN THE CASE OF SH. JOGINDER SINGH NRI VS. ITO KAPURTHALA AND IN ITA NO.192(ASR)/2010 IN THE CASE OF SH. LAKHBIR SINGH, NRI VS. ITO KAPURTHALA. HE FURTHER STATED THAT WHEN QUANTUM HAS ALREADY BEEN DELETED BY QUASHING THE ASSESSMENTS THEN THE QUESTION OF LE VYING PENALTY U/S 271(1)(C) OF THE I.T.ACT, 1961 DOES NOT ARISE AND R EQUESTED THAT THE PRESENT APPEALS FILED BY THE REVENUE MAY BE DISMISSED. 5. THE LD. DR, ON THE OTHER HAND, RELIED UPON THE O RDERS PASSED BY THE ASSESSING OFFICER. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT MATERIAL AVAILABLE WITH US, ESPECIALLY THE ORDER PASSED BY T HIS BENCH DATED 21 ST MAY,2012 IN ASSESSEES OWN CASES IN ITA NOS. 190, 19 1 & 192(ASR)2010 FOR THE ASSESSMENT YEAR 1999-2000 (SUPRA). WE ARE OF TH E VIEW THAT THIS BENCH HAS QUASHED THE ASSESSMENTS IN DISPUTE ON WHICH PE NALTY IN DISPUTE HAS BEEN ITA NOS, 354, 355 & 356 (ASR)/2012 4 IMPOSED, THEREFORE, THE QUESTION OF LEVYING THE PEN ALTY U/S 271(1)(C) OF THE I.T. ACT, DOES NOT ARISE. 6.1. THE LD. CIT(A) HAS ALSO CANCELLED THE PENALTY IN DISPUTE BY FOLLOWING THE DECISION OF THIS BENCH DATED 21 ST MAY, 2012. THE RELEVANT PORTION OF THE IMPUGNED ORDER OF CIT(A) AT PAGE 5 ( PARA 5 TO 7) I S REPRODUCED AS UNDER: 5. I HAVE CONSIDERED THE SUBMISSIONS CAREFULLY. TH E QUANTUM APPEALS OF ALL THE THREE APPELLANTS HEREIN AGAINST THE ORDERS OF THE CIT(A) UPHOLDING THE ADDITIONS MADE BY THE AO WERE DECIDED BY THE HONBLE ITAT, AMRITSAR BENCH, AMRITSAR VIDE THEIR C OMMON ORDER DATED 21.05.2012. THE RELEVANT APPEAL NUMBERS BEFOR E THE HONBLE ITAT ARE AS FOLLOWS: (I) ITA NO.190(ASR)2010 SH. JASBIR SINGH, NRI, THROUG H SH. JARNAIL SINGH, POA, JALANDHAR. (II) ITA NO.191(ASR)/2010 SH. JOGINDER SINGH, NRI, THR OUGH SH. JARNAIL SINGH, POA, JALANDHAR. (III) ITA NO.192(ASR)/2010 SH. LAKHBIR SINGH, NRI, THRO UGH SH. JARNAIL SINGH, POA, JALANDHAR. 6. IN THE AFORESAID COMMON ORDER THE HONBLE ITAT H AVE HELD, INTER ALIA, THAT THE ITO, KAPURTHALA HAD NO JURISDI CTION TO ISSUE NOTICE ON THE PRESENT ASSESSEES, WHICH, IN FACT, SHOULD HA VE BEEN SERVED UPON SH. JARNAIL SINGH, THE POA TO WHOM THE NOTICES BY T HE DEPARTMENT HAD BEEN ISSUED EARLIER BY THE ITO WARD 2(6), JALAN DHAR/ITO WARD IV(2), JALANDHAR. THE HONBLE ITAT HAVE HELD THAT T HE NOTICES ISSUED BY THE INCOME TAX DEPARTMENT ON SHRI JASBIR SINGH, SH. JOGINDER SINGH AND SH. LAKHVIR SINGH WERE BAD IN LAW AND THE Y HAVE, CONSEQUENTLY, QUASHED THE ASSESSMENTS. 7. THE ASSESSMENTS IN ALL THE THREE CASES WERE ON T HE SAME ISSUE I.E. ASSESSMENT OF LONG TERM CAPITAL ON ACQUISITION OF THEIR LANDS BY PUDA. IN ALL THE THREE CASES THE NOTICES U/S 148 WE RE SERVED IN SIMILAR MANNER. THE HONBLE ITAT HAVE HELD ALL THE THREE ASSESSMENTS MADE BY THE AO TO BE BAD IN LAW. SINCE THE RELEVANT ASSESSMENT ORDERS IN ALL THE THREE CASES HAVE BEEN QUASHED, TH E PENALTY PROCEEDINGS INITIATED IN THESE ASSESSMENT ORDERS UN DER APPEAL ARE ALSO, THEREFORE, INVALID AND BAD IN LAW AND ARE HER EBY CANCELLED. ITA NOS, 354, 355 & 356 (ASR)/2012 5 6.2. KEEPING IN VIEW THE AFORESAID DISCUSSIONS AS W ELL AS THE RELEVANT PORTION OF THE IMPUGNED ORDER, AS REPRODUCED ABOVE, WE ARE OF THE CONSIDERED OPINION THAT THE LD. FIRST APPELLATE AUT HORITY HAS RIGHTLY DELETED THE PENALTY IN DISPUTE ON THE BASIS OF QUANTUM ORDE R PASSED BY THIS BENCH, DATED 21 ST MAY, 2012. WE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR IN THE WELL REASONED ORDER PASSED BY THE LD. FIRST APP ELLATE AUTHORITY. THEREFORE, WE UPHOLD THE IMPUGNED ORDER BY DISMISSING THE APPE ALS FILED BY THE DEPARTMENT. 7. IN THE RESULT, ALL THE THREE APPEALS FILED BY T HE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23RD OCTOBER, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23RD OCTOBER, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEES I)SH.JASBIR SINGH, NRI (2) SH.JOGINDE R SINGH, NRI (3) SH. LAKHVIR SINGH, NRI 2. THE ITO, KAPURTHALA 3. THE CIT(A), JLR. 4. THE CIT,SJLR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.