KAWALNAIN SINGH SEHGAL, MUMBAI V. ITO 21(2)(3), MUMBAI

ITA 4281/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 7744 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 21-06-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: R H BINDRA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.4281/M/2016 (AY 2009 - 2010) KAWALNAIN SINGH SEHGAL, FLAT NO.501, ASHAR VILLA, PLOT NO.242, NEAR TAMIL SANGHAM HALL, SION (E), MUMBAI 400 022. / VS. INCOME TAX OFFICER, 21(2)(3), PRATYAKSHA KAR BHAVAN, 5 TH FLOOR / C - 10, BANDRA KURLA COMPLES, BANDRA (E), MUMBAI 400 051. ./ PAN : ASLPS3244H ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI R.H. BINDRA / RESPONDENT BY : MS. BEENA SANTOSH, DR / DATE OF HEARING : 22.03.2017 / DATE OF PRONOUNCEMENT : 29 .03.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 21.6.2016 IS AGAINST THE ORDER OF THE CIT (A) - 38, MUMBAI DATED 31.3.2016 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE SOLITARY ISSUE RAISED IN THIS APPEAL RELATES TO THE PENALTY U/S 271(1)(C) OF THE ACT. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE BROUGHT MY ATTENTION TO THE ORDER OF THE TRIBUNAL IN QUANTUM APPEAL VIDE ITA NO.5589/M/2012 FOR AY 2009 - 2010, DATED 17.2.2017 AND MENTIONED THAT VIDE PARA 6 OF THE SAID ORDER (SUPRA), THE MATTER WAS REMAND ED BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION OF THE ISSUE AFTER AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . THEREFORE, THE PENALTY LEVIED, WHICH IS THE SUBJECT MATTER OF THE PRESENT APPEAL, HAS NO LEGS TO STAND. 3. ON HEARING BOTH THE PARTIES AND ON PERUSAL OF THE SAID ORDER OF THE TRIBUNAL (SUPRA), I FIND, THE IMPUGNED PENALTY ORDER IS UNSUSTAINABLE IN LAW CONSIDERING THE SAID DECISION OF THE TRIBUNAL (SUPRA) . ACCORDINGLY I ORDER. HOWEVER, AO IS FREE TO INITIATE THE PENALTY PROCEEDINGS AS PER THE LAW DURING THE REMANDING PROCEEDINGS TO 2 GIVE EFFECT TO THE SAID ORDER OF THE TRIBUNAL. THUS, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 9 T H MARCH, 2017. S D / - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 29.03.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI