ACIT, New Delhi V. Sh. S.K. Sharma, New Delhi

ITA 4667/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5635 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 1996-1997
• Appeal Filed On: 10-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT & SHRI I.P. BANSAL, JUDICIAL MEMBER ITA NO. 4667/DEL/2009 ASSESSMENT YEAR: 1996-97 ACIT, CIRCLE 32, C.R. BLDG., I.P. ESTATE, NEW DELHI. VS. S.K. SHARMA, D-1/25, VASANT VIHAR, NEW DELHI. PAN NO. - (APPELLANT) (RESPONDENT) APPELLANT BY : INDERJEET SINGH, DR RESPONDENT BY: NONE O R D E R PER I.P. BANSAL, J.M. THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRE CTED AGAINST THE ORDER OF CIT(A) DATED 14 TH SEPTEMBER, 2009. GROUNDS OF APPEAL READ AS UNDER: - WHETHER THE LD. CIT(A) WAS CORRECT IN LAW IN DELET ING THE PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 , SPECIALLY IN VIEW OF THE FACT THAT THE ASSESSEE COULD NOT FURNISH ANY EX PLANATION AND DOCUMENTARY EVIDENCE TO ESTABLISH THE GENUINENESS O F THE TRANSACTIONS OF INVESTMENT IN FLAT AND CAR. 2. THE IMPUGNED ASSESSMENT ON THE BASIS OF WHICH PR ESENT PENALTY WAS IMPOSED IS AN ORDER PASSED U/S 144 READ WITH SE CTION 264 OF INCOME TAX ACT, 1961 (ACT), WHEREIN THE INCOME OF THE ASSE SSEE WAS ASSESSED AT A SUM OF RS. 1,09,43,902/-. IN THE QUANTUM APPE AL THE CIT(A) HELD ITA NO. 4667/D/09 2 THAT THE ASSESSMENT WAS FRAMED WITHOUT ACTUALLY SER VING THE NOTICE ON THE ASSESSEE HENCE THE ASSESSMENT PROCEEDINGS WERE VOID. ON QUANTUM APPEAL THE ISSUE WAS DECIDED IN FAVOUR OF A SSESSEE AS IT WAS FOUND THAT INVESTMENT MADE BY THE ASSESSEE WAS FROM EXPLAINED SOURCES I.E. OUT OF SALE OF HIS FLAT AT MALCHAMAL, NEW DELHI. IN THIS VIEW OF THE SITUATION, IMPUGNED CONCEALMENT PENALTY HAS BEEN CANCELLED BY LD. CIT(A). 3. NOTICE OF HEARING WAS SENT TO ASSESSEE IN RESPON SE TO WHICH WRITTEN SUBMISSIONS HAVE BEEN PLACED ON RECORD. WI TH THE SAID WRITTEN SUBMISSIONS ASSESSEE HAS ENCLOSED ORDER OF TRIBUNAL IN QUANTUM PROCEEDING WHICH IS DATED 15 TH OCTOBER,2009 IN ITA NO. 3244/D/09 WHICH IS AN APPEAL FILED BY THE REVENUE AGAINST FINDINGS OF LD. CIT(A) IN QUANTUM PROCEEDINGS VIDE WHICH IT WAS HELD THAT ASS ESSMENT WAS VOID ON THE GROUND THAT NOTICE SERVED BY AFFIXTURE WAS I NVALID. SINCE THE ASSESSMENT WAS HELD TO BE INVALID BEING WITHOUT SER VICE OF NOTICE, THE ISSUE REGARDING MERITS WERE NOT CONSIDERED BY THE T RIBUNAL BEING NO LONGER SURVIVED. COPY OF SAID ORDER WAS ALSO GIVEN TO LD. DR WHO RELIED UPON THE ASSESSMENT ORDER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF MATERIAL PLACED BEFORE US. SINCE THE ASSESSMENT HAS BEEN HE LD TO BE INVALID AND THESE FINDINGS OF LD. CIT(A) HAVE BEEN UPHELD, WE A RE OF THE VIEW THAT THERE IS NO INFIRMITY IN THE ORDER OF CIT(A) WHEN H E QUASHED THE ITA NO. 4667/D/09 3 IMPUGNED PENALTY AS THE SAME DOES NOT HAVE LEGS TO STAND. WE DECLINE TO INTERFERE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON19 TH FEBRUARY, 2010. (G.E. VEERABHADRAPPA) VICE PRESIDENT (I.P. BANSAL) JUDICIAL MEMBER DATED: 19 TH FEBRUARY, 2010. KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR