DR JASLEEN KAUR, JALANDHAR V. A.C.I.T, CIRCLE - II, JALNDHAR

ITA 376/ASR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5753 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2018
• Assessment Year: 2007-2008
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S NEGI
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER ITA NO.376/ASR/2017 ASSESSMENT YEAR : 2007-08 DR. JASLEEN KAUR, C/O M/S ORTHONOVA HOSPITAL, NAKODAR ROAD, JALANDHAR. PAN: ABIPK6994L VS. ACIT, CIRCLE-II, JALANDHAR. (APPELLANTS) (RESPONDENTS) ASSESSEE BY : SHRI SURINDER MAHAJAN, CA DEPARTMENT BY : SHRI S.S. NEGI DATE OF HEARING : 19.02.2018 DATE OF PRONOUNCEMENT : 20.02.2018 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 24.04.2017, CONFIRMING THE PENALTY OF ITA NO.376/ASR/2017 2 RS.6,73,200/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEAR 2007-08. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT A SE ARCH AND SEIZURE ACTION WAS TAKEN U/S 132 OF THE ACT AT THE BUSINESS -CUM-RESIDENTIAL PREMISES OF THE ASSESSEE. BASED ON CERTAIN INCRIMI NATING MATERIAL FOUND DURING THE COURSE OF SEARCH, THE ASSESSING OFFICER MADE AN ADDITION OF RS.30 LAC. THEREAFTER, PENALTY WAS IMPOSED WITH RE FERENCE TO SUCH ADDITION. THE LD. CIT(A) DELETED THE ADDITION IN Q UANTUM PROCEEDINGS. HOWEVER, THE TRIBUNAL OVERTURNED THE ORDER OF THE L D. CIT(A). THE LD. AR SUBMITTED THAT THE ASSESSEE CHALLENGED THE CONFI RMATION OF ADDITION BEFORE THE HON'BLE HIGH COURT, WHICH HAS REMITTED THE MATTER BACK TO THE LD.CIT(A) FOR FRESH ADJUDICATION OF THE MATTER. NOW THE ASSESSEE IS IN APPEAL AGAINST THE ORDER CONFIRMING THE PENALTY IMP OSED W.R.T. THE ADDITION, WHICH STANDS RESTORED TO THE LD. CIT(A). 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVA NT MATERIAL ON RECORD. IT IS NOTICED THAT THE FOUNDATION FOR THE I NSTANT PENALTY IS THE ITA NO.376/ASR/2017 3 QUANTUM ADDITION WHICH HAS BEEN EVENTUALLY RESTORED BY THE HONBLE HIGH COURT TO THE FILE OF THE LD. CIT(A) FOR TAKING A FRESH DECISION IN ACCORDANCE WITH THE LAW. UNDER THESE CIRCUMSTANCES , WE ARE OF THE CONSIDERED OPINION THAT IT WOULD BE IN THE FITNESS OF THINGS IF THE MATTER CONCERNING THE PENALTY ON SUCH AMOUNT IS ALSO SENT BACK TO BE DECIDED IN CONFORMITY WITH THE VIEW TAKEN BY THE LD. CIT(A) IN THE PROCEEDINGS PURSUANT TO THE DIRECTIONS GIVEN BY THE HONBLE HIG H COURT. OUR VIEW IN RESTORING THE PENALTY TO THE LD. CIT(A) IS FORTIFIE D BY THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF MOHD. MOHATRAM FAROOQUI VS. CIT (SC) 2010-TIOL-23-SC-IT IN WHICH IT HAS BEEN HELD THAT IF ADDITION IS RESTORED TO THE AO, THEN PENALTY SHOULD ALSO BE RESTORED. THE HONBLE DELHI HIGH COURT IN SANJAY GUPTA VS. CIT (2014) 366 ITR 18 (DEL) HAS ALSO HELD THAT WHERE THE QUANTUM HAS BEEN REMANDED TO THE AO, THE QUESTION OF PENALTY ON ACCOUNT OF THE SAID AMOUNT B EING TREATED AS UNDISCLOSED INCOME, SHOULD ALSO BE REMANDED TO THE AO. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER T O THE FILE OF THE LD. CIT(A) FOR DETERMINING THE QUESTION OF IMPOSITION O R OTHERWISE OF THE PENALTY ON THIS ISSUE, AFTER DECIDING THE POINT ON MERITS. NEEDLESS TO SAY, ITA NO.376/ASR/2017 4 THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNI TY OF HEARING IN THIS REGARD. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 20.02.201 8. SD/- SD/- [N.K. CHOUDHRY] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 20 TH FEBRUARY, 2018. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, AMRITSAR.