Shriram Insight Share Brokers Ltd., Kolkata V. JCIT, R-59(TDS), KOLKATA, Kolkata

ITA 434/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1183 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 14-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARJEE
• Assessee Lawyers: M D SHAH
• Keywords: Principle of natural justice

Judgement Text

1 ITA NO.434/KOL/2016 SHRIRAM INSIGHT SHARE BROKERS LTD., AY- 2012-13 , D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA ( ) BEFORE . . , /AND . , ) [BEFORE SHRI A. T. VARKEY, JM & SHRI M.BALAGANESH, AM] I.T.A. NO. 434/KOL/2016 ASSESSMENT YEAR: 2012-13 SHRIRAM INSIGHT SHARE BROKERS LTD. (PAN: CALIO1614E) VS. JOINT COMMISSIONER OF INCOME-TAX, RANGE-59 (TDS), KOLKATA. APPELLANT RESPONDENT DATE OF HEARING 20.02.2018 DATE OF PRONOUNCEMENT 28.03.2018 FOR THE APPELLANT SHRI M. D. SHAH, AR FOR THE RESPONDENT SHRI ARINDAM BHATTACHARJEE, ADDL . CIT ORDER PER SHRI A.T.VARKEY, JM THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF LD. CIT(A)-24, KOLKATA DATED 31.12.2015 FOR AY 2012-13. 2. AT THE OUTSET ITSELF, THE LD. AR BROUGHT TO OUR NOTICE THAT PENALTY U/S. 271C WAS IMPOSED BY SHORT DEDUCTION OF TDS U/S. 194J ON PAYM ENTS OF LEASE LINE CHARGES, COMPUTER MAINTENANCE CHARGE ETC. RAISED IN AN ORDER U/S. 201 (1)/(1A) DATED 31.03.2014. ACCORDING TO LD. AR, THE ORDER OF AO U/S. 201(1)/1A DATED 31.03. 2014 ON THIS ISSUE HAS BEEN FOUND TO BE LEGALLY UNTENABLE BY THIS TRIBUNAL ON 09.02.2018 , IN ITA NO. 433/KOL/2016 FOR THIS RELEVANT AY UNDER CONSIDERATION AND SO RESULTANTLY, THE PENALTY LEVIED ON THE FOUNDATION OF AOS ORDER WHICH IS NON-EXISTING IN THE EYES OF LAW , ALSO NECESSARILY HAS TO FAIL. SO, PENALTY ORDER IS NULL IN THE EYES OF LAW AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 3. BEFORE WE PART, WE WOULD HASTEN TO ADD, THAT THE LD. CIT(A) HIMSELF HAS ORDERED DELETION OF PENALTY, HOWEVER, DID NOT ALLOW THE PLE A OF THE ASSESSEE IN RESPECT TO GROUND NO. 1 AND 2 BEFORE HIM, WHICH WERE ASSAILING THE DECIS ION OF THE AO IN RESPECT OF PENALTY BE 2 ITA NO.434/KOL/2016 SHRIRAM INSIGHT SHARE BROKERS LTD., AY- 2012-13 LEVIED IN VIOLATION OF NATURAL JUSTICE AND LIMITATI ON. IN THE LIGHT OF THE AFORESAID DISCUSSION, WE ALLOW THE APPEAL ON THE GROUND THAT AOS ORDER U /S. 201(1)/1A HAS BEEN SET ASIDE BEING UNTENABLE IN LAW, THE PENALTY LEVIED ON THE BASIS O F AOS ORDER WHICH IS NOT EXISTING IN THE EYES OF LAW IS NULL IN THE EYES OF LAW. ALL OTHE R GROUNDS RAISED BY THE ASSESSEE IS NOT LOOKED INTO BEING ACADEMIC IN NATURE. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 28.03.2018 SD/- SD/- (M. BALAGANESH) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28TH MARCH, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRIRAM INSIGHT SHARE BROKERS LTD., C/O, D. J. SHAH & CO. KALYAN BHAVAN, 2, ELGIN ROAD, KOLKATA-700 020. 2 RESPONDENT JCIT, RANGE-59(TDS), KOLKATA. 3. THE CIT(A) KOLKATA. 4. 5. CIT KOLKATA DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, SR. PVT. SECRETARY