Sh. Jagat Singh Rajora, New Delhi V. ITO, New Delhi

ITA 4288/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73950 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 15-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMEER SHARMA
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH D, NEW DELHI BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI SHAMIM YAHIYA, ACCOUNTANT MEMBER ITA NO. 4288/DEL./2013 ASSTT. YEAR : 2006-07 SH. JAGAT SINGH RAJORA, VS. INCOME-TAX OFFICER, 44-A, LIG, DDA FLATS, WARD 23(3), NEW DELHI. JASOLA VIHAR, NEW DELHI. (PAN : AAJPR 8682 A) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ROHAN KHARE, ADVOCATE RESPONDENT BY : SHRI SAMEER SHARMA, CIT/DR DATE OF HEARING : 06.01.2014 DATE OF PRONOUNCEMENT OF ORDER : 09.01.2014 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. CIT(A) XXIII, NEW DELHI DATED 03.05.2013 FOR THE ASSESSMEN T YEAR 2006-07, CHALLENGING THE LEVY OF PENALTY U/S. 271(1)(C) OF THE IT ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSING OFFICER MADE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDIT OF RS.26.34 LACS AND INITIATED THE PENALTY PROCEEDINGS U/S. 271(1)(C) AND VIDE SEPARATE ORDER LEVIED THE PENALTY. THE LD CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON -PROSECUTION. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT THE ITAT, DELHI D BENCH, NEW DELHI IN THE CASE OF THE SAME ASSESS EE ON QUANTUM FOR SAME ITA NO.4288/DEL/2013 2 ASSESSMENT YEAR IN ITA NO. 657/2010 RESTORED THE MA TTER OF UNEXPLAINED CASH CREDIT TO THE FILE OF AO FOR EXAMINATION. THE COPY OF THE ORDER DATED 26.04.2013 IS PLACED ON RECORD. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THAT THE PENALTY IS NOT LEVIABLE AT THIS STAGE. SINCE THE QUANTUM ADDIT ION WAS THE BASIS FOR LEVY OF PENALTY U/S. 271(1)(C), WHICH IS ALREADY RESTORED T O THE FILE OF AO FOR ADJUDICATION AFRESH, THEREFORE, NOTHING SURVIVES IN FAVOUR OF TH E REVENUE TO LEVY PENALTY AT THIS STAGE. MOREOVER, THE ORDER OF THE LD. CIT(A) IS NON -SPEAKING AND CANNOT BE SUSTAINED IN LAW. THE LEVY OF PENALTY AT THIS STAGE IS, THEREFORE, NOT JUSTIFIED. WE ACCORDINGLY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. THE AO IS, HOWEVER, AT LIBERTY TO INITIATE PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE IT ACT AFTER QUANTUM ORDER IS FINALIZED AND IN ACCO RDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SHAMIM YAHIYA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, NEW DELHI 6. GUARD FILE ASSTT. REGISTRAR TRUE COPY