DCIT, Ludhiana V. Iqbal Singh Ghumber, Chandigarh

ITA 415/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8949 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 21-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 143(3); 153A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 415/CHD/2016 ASSESSMENT YEAR: 2006-07 THE DCIT, CENTRAL CIRCLE-III, VS. SH. IQBAL SINGH GUMBER, LUDHIANA CHANDIGARH PAN NO. AAIPS7022C (APPELLANT) (RESPONDENT) APPELLANT BY : SH. MANJIT SINGH RESPONDENT BY : SH. SUDHIR SEHGAL DATE OF HEARING : 17.11.2016 DATE OF PRONOUNCEMENT : 21.11.2016 ORDER PER BHAVNESH SAINI, JM THIS APPEAL BY THE REVENUE HAS BEEN DIRECTED AGAIN ST THE ORDER OF LD. CIT(A)-3, GURGAON DATED 31.12.2015 FOR ASSES SMENT YEAR 2006- 07 CHALLENGING THE DELETION OF PENALTY U/S 271(1)(C ) OF THE I.T. ACT. 2. IN THIS CASE ASSESSMENT U/S 153A READ WITH SECTI ON 143(3) OF THE ACT FOR ASSESSMENT YEAR 2006-07 WAS PASSED VIDE ORD ER DATED 30.12.2010 MAKING AN ADDITION OF RS. 3,08,68,602/-. THE ASSESSING 2 OFFICER ON SUCH ADDITION LEVIED THE PENALTY U/S 271 (1)(C) OF THE ACT. THE ASSESSEE SUBMITTED BEFORE LD. CIT(A) THAT HE HA S CARRIED OUT THE QUANTUM ADDITION TO THE ITAT CHANDIGARH AND THE TRI BUNAL IN ITA NO.. 74/CHD/2013 HAS DELETED THE ADDITION VIDE ORDE R DATED 27.11.2015, THEREFORE, PENALTY MAY BE CANCELLED. TH E LD. CIT(A) ON GOING THROUGH THE ORDER OF THE TRIBUNAL DATED 27.1 1.2015 FOUND THAT SINCE ADDITION HAS ALREADY BEEN DELETED BY THE TRIB UNAL ON QUANTUM, THEREFORE, PENALTY NEED NOT TO BE NOT IMPOSED. THE PENALTY ORDER WAS SET ASIDE, PENALTY WAS CANCELLED AND THE APPEAL OF THE ASSESSEE HAS BEEN ALLOWED. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE DO N OT FIND ANY MERIT THE DEPARTMENTAL APPEAL. THE LD. DR MERELY CONTENDE D THAT CIT(A) SHOULD NOT HAVE CANCELLED THE PENALTY AND HE SHOULD HAVE WAITED FOR OUTCOME OF THE DEPARTMENTAL APPEAL AGAINST THE ORDE R OF THE TRIBUNAL DATED 27.11.2015. THERE IS NO MERIT IN THE CONTENTI ON OF THE LD. DR. THE BASIS OF LEVY OF PENALTY IS ADDITION OF RS. 3.0 8 CRORES MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. SINCE TH E ADDITION HAS BEEN DELETED BY THE TRIBUNAL, THEREFORE, NOTHING SURVIVE S WITH THE REVENUE TO LEVY THE PENALTY AGAINST THE ASSESSEE. ONCE FOUN DATION OF THE PENALTY IS GONE, THERE IS NO JUSTIFICATION TO KEEP THE MATTER PENDING UNNECESSARILY. THEREFORE, LD. CIT(A) HAS CORRECTLY FOLLOWED THE ORDER OF THE TRIBUNAL AND RIGHTLY DELETED THE PENALTY IN THE MATTER. THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL, THE SAME IS AC CORDINGLY DISMISSED. 3 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAI NI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 ST NOVEMBER, 2016 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR