V.Sridhar, CHENNAI V. ACIT, CHENNAI

ITA 416/CHNY/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5021 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-08-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 17-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN ACIT
• Assessee Lawyers: N DEVANATHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . , ! , $ % BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NO.416/MDS/2017 $! ! /ASSESSMENT YEAR: 2010-11 SHRI V.SRIDHAR, NO.4A, FOURTH CROSS STREET, SEETHAPATHY NAGAR EXTN., VELACHERRY, CHENNAI-600 042. VS. THE ASST. COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-18, CHENNAI. [PAN: ADOPS 5305 F ] ( ' /APPELLANT) ( ()' /RESPONDENT) ' * / APPELLANT BY : MR.N.DEVANATHAN, ADV. ()' * /RESPONDENT BY : MR.N.MADHAVAN, ACIT. * /DATE OF HEARING : 10.01.2018 * /DATE OF PRONOUNCEMENT : 10.01.2018 / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER : ITA NO.416/MDS/2017 IS AN APPEAL FILED BY THE ASSE SSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1 5, CHENNAI, IN ITA NO.129/CIT(A)-15/2014-15 DATED 20.12.2016 FOR THE A Y 2010-11. 2. SHRI N.MADHAVAN, ACIT, REPRESENTED ON BEHALF OF THE REVENUE AND SHRI N.DEVANATHAN, ADV. REPRESENTED ON BEHALF OF TH E ASSESSEE. ITA NO.416/MDS/2017 :- 2 -: 3. AT THE TIME OF HEARING, THE LD.AR DREW OUR ATTEN TION TO THE PENALTY NOTICE ISSUED U/S.274 R.W.S.271 AT PAGE NO.15 OF TH E PAPER BOOK. IT WAS A SUBMISSION THAT IN THE NOTICE THE AO HAS NOT STRUCK DOWN AS TO WHETHER PENALTY IS BEING LEVIED FOR THE CONCEALMENT OF THE PARTICULARS OF THE INCOME OR FOR FURNISHING OF INACCURATE PARTICULARS OF THE INCOME. IT WAS A SUBMISSION THAT IN VIEW OF THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF MANJUNATHA COTTON AND GINNING FACTORY R EPORTED IN (2013) 359 ITR 565 AND IN THE CASE OF DILIP N.SHROFF REPOR TED IN [2007] 291 ITR 519 (SC) ON ACCOUNT OF THE NON-STRIKING OF THE IRRE LEVANT COLUMN IN THE NOTICE ISSUED U/S.274 R.W.S. 271(1)(C) MAKES THE NO TICE INVALID AND CONSEQUENTLY, THE PENALTY WAS LIABLE TO BE CANCELLE D. IT WAS ALSO A SUBMISSION THAT THE SLP FILED BY THE REVENUE ON THE SAME ISSUE BEFORE THE HONBLE SUPREME COURT HAS ALSO BEEN DISMISSED. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE ORD ER OF THE AO AND THE LD.CIT(A). HOWEVER, THE LD.DR WAS UNABLE TO CO NTROVERT THE DECISION RELIED UPON BY THE ASSESSEE BEFORE US. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. RESPE CTFULLY FOLLOWING THE LEGAL PRECEDENTS CITED SUPRA, AS IT IS NOTICED THAT THE ASSESSEE HAS NOT BEEN PUT ON NOTICE FOR WHICH REASON THE PENALTY IS BEING INITIATED, THE NOTICE U/S.274 R.W.S.271 DATED NIL IN THE CASE OF T HE ASSESSEE FOR THE AY 2010-11 IS HELD TO BE BAD IN LAW AND CONSEQUENTLY, THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT ON THE BASIS OF SUCH NOTIC E BEING UNSUSTAINABLE ITA NO.416/MDS/2017 :- 3 -: STANDS CANCELLED. THE PENALTY AS LEVIED BY THE AO AND AS CONFIRMED BY THE LD.CIT(A) STANDS CANCELLED. AS WE HAVE DECIDED THE ISSUE ON TECHNICALITY OF THE VALIDITY OF THE NOTICE, WE ARE NOT GOING INTO THE MERITS OF THE LEVY OF PENALTY. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 10, 2018, AT CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P.GEORGE ) /ACCOUNTANT MEMBER ( ! ) (GEORGE MATHAN) $ /JUDICIAL MEMBER /CHENNAI, 1 /DATED: JANUARY 10, 2018. TLN * ($23 43 /COPY TO: 1. ' /APPELLANT 4. 5 /CIT 2. ()' /RESPONDENT 5. 3 ($$ /DR 3. 5 ( ) /CIT(A) 6. ! /GF