M/s Ranjeev Steels Pvt. Ltd., Mandi Gobindgarh V. ITO, W-1, Mandi Gobindgarh

ITA 489/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1300 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 19-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J S KAHLON

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 489/CHD/2018 ASSESSMENT YEAR : 2008-09 M/S RANJEEV STEELS (P) LTD., VS. THE ITO, WARD-1, AMLOH ROAD, MANDI GOBINDGARH MANDI GOBINDGARH PAN NO. AACCR6231Q (APPELLANT) (RESPONDENT) APPELLANT BY : SH. TEJ MOHAN SINGH, ADV. RESPONDENT BY : SH. J.S. KAHLON, SR.DR DATE OF HEARING : 24.07.2018 DATE OF PRONOUNCEMENT : 07.09. 2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 12.3.2018 OF THE COMMISSIONER OF I NCOME TAX(A)-1, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. CIT(A) HAS ERRED IN LAW IN HOLDING THAT THE PENALTY APPEAL FILED BEFORE HIM WAS INFRUCTUOUS AS PENALTY ORDER DID NOT SURVIVE SINCE ASSESSMENT ORDER CONCERNED HAS BEEN SET ASIDE AND THEREBY DISMISSING THE APPEAL THOUGH FOR STATISTICA L PURPOSES WHICH IS ILLEGAL, ARBITRARY & UNJUSTIFIED. 2. THAT THE APPEAL OUGHT TO HAVE BEEN ALLOWED ESPECIALLY IN LIGHT OF THE FACT THAT IN SET ASIDE ITA NO. 489/CHD/2018- M/S RANJEEV STEELS (P) LTD., MANDI GOBINDGARH 2 PROCEEDINGS BEFORE THE ASSESSING OFFICER, THE RETURNED INCOME STANDS ACCEPTED AND AS SUCH THE APPEAL MERITS TO BE ALLOWED AND NOT DISMISSED WHICH IS ILLEGAL, ARBITRARY & UNJUSTIFIED. 3. THAT THE ORDER OF THE LD. CIT(A) PASSED U/S 271(1)(C) OF THE ACT IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS UNTENABLE. 2. THE ISSUE RAISED IN THIS APPEAL IS RELATING TO THE LEVY OF PENALTY U/S 271(1)(C) OF INCOME-TAX ACT, 1961 (IN SHORT 'TH E ACT') . 3. THE LD. CIT(A) NOTED THAT SINCE THE ISSUE RELATI NG TO THE QUANTUM ADDITIONS IN RESPECT OF WHICH THE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT WAS LEVIED, HAVE BEEN REST ORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATI ON AS WELL AS THE IMPUGNED PENALTY DID NOT SURVIVE AND THE APPEAL AG AINST THE PENALTY ALSO BECOME INFRUCTUOUS, THE LD. CIT(A) ACCORDINGL Y DISMISSED THE APPEAL. 4. THE ASSESSEE NOW COME WITH THE PLEA THAT THE LD. CIT(A) SHOULD HAVE ALLOWED THE APPEAL AND NOT DISMISSED TH E SAME. 5. IN OUR VIEW, SUCH TYPE OF GROUNDS TAKEN IN APPE AL ARE JUST FOR THE SAKE OF FILING OF THE APPEAL FOR THE REASONS BE ST KNOWN TO THE ASSESSEE OR TO HIS COUNSEL. THE LD. CIT(A) HAS GIV EN A CATEGORICAL FINDING THAT THE IMPUGNED PENALTY DID NOT SURVIVE BECAUSE THE VERY BASIS I.E. THE ASSESSMENT ORDER ITSELF HAS BEEN S ET ASIDE. 6. IN VIEW OF THIS, SINCE THE LD. CIT(A) HAS CATEG ORICALLY HELD THAT NO PENALTY IS LEVIABLE IN THIS CASE, THERE DOE S NOT REMAIN ANY ITA NO. 489/CHD/2018- M/S RANJEEV STEELS (P) LTD., MANDI GOBINDGARH 3 GROUND WITH THE ASSESSEE TO FILE THE PRESENT APPE AL AND THE SAME IS ACCORDINGLY DISMISSED. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 07.09.2018 SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07.09.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR