ACIT, Circle - 2, Durgapur, Durgapur V. Shri Satish Kumar Sharma, Durgapur

ITA 500/KOL/2011

• Counselvise Citation: 50023514 RSA 2011
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2011
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 28-03-2011
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANIK
• Assessee Lawyers: R SALARPURIA
• Section: 68

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH B, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . , #$ SHRI C.D.RAO, ACCOUNTANT MEMBER % % % % / ITA NO . 500/KOL/2011 &' ()/ ASSESSMENT YEAR : 2007-08 (+, / APPELLANT ) A.C.I.T., CIRCLE-2, DURGAPUR - & - - VERSUS - . (./+,/ RESPONDENT ) SHRI SATISH KUMAR SHARMA, DURGAPUR (PAN: AVFPS 1250 G) +, 0 1 #/ FOR THE APPELLANT: SHRI A.K.PRAMANIK ./+, 0 1 #/ FOR THE RESPONDENT: SHRI R.SALARPURIA #2 / ORDER ( (( ( . .. .!' !'!' !'. .. . ) )) ), , , , #$ PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 21.01.2011 OF THE CIT(A)-DURGAPUR PERTAINING TO A.YR. 2007-08. 2. THE ONLY ISSUE RAISED BY THE REVENUE RELAT ES TO THE DELETION OF PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE IT ACT BY STATING THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS NOT JUSTIFIED IN DELETI NG PENALTY WHEN APPEAL HAS BEEN FILED BY THE DEPARTMENT BEFORE THE HONBLE HIGH COU RT, KOLKATA AGAINST THE ORDER OF HONBLE ITAT, WHICH HAS FORMED THE BASIS OF RELIEF ALLOWED BY THE CIT(A). 3. AT THE TIME OF HEARING, THE LD. DR APPEARI NG ON BEHALF OF THE REVENUE REITERATED THE ABOVE FACTS AND SINCE THE QUANTUM APPEAL IS UND ER APPEAL BEFORE THE HONBLE HIGH COURT THE LD. CIT(A) IS NOT JUSTIFIED TO DELETE THE PENALTY. 4. ON THE OTHER HAND, THE LD. COUNSEL APPEARING O N BEHALF OF THE ASSESSEE HAS SUBMITTED THAT SINCE THE QUANTUM ADDITION ITSELF HA S BEEN DELETED BY THE TRIBUNAL THE 2 PENALTY WHICH IS CONSEQUENTIAL IN NATURE CANNOT BE SUSTAINED. THEREFORE, HE REQUESTED TO UPHOLD THE ACTION OF THE LD. CIT(A). 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON C AREFUL PERUSAL OF MATERIALS AVAILABLE ON RECORD WE ARE OF THE VIEW THAT WHEN ONCE THE TRI BUNAL HAS DELETED THE ADDITION MADE U/S 68 OF THE ACT CONSEQUENTIALLY PENALTY LEVI ED BY THE DEPARTMENT IS NOT SUSTAINABLE IN THE EYES OF LAW. AS REGARDING THE CO NTENTION OF THE REVENUE THAT THE DEPARTMENT HAS PREFERRED AN APPEAL AGAINST THE ORDE RS OF THE TRIBUNAL BEFORE THE HONBLE CALCUTTA HIGH COURT AND THE LD. CIT(A) IS N OT JUSTIFIED IN DELETING THE PENALTY IS NOT TENABLE AS THE HONBLE HIGH COURT HAS NEITHE R REVERSED THE ORDERS OF THE TRIBUNAL NOR STAYED TRIBUNALS ORDERS. THEREFORE, W E DISMISS THE APPEAL OF THE REVENUE. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 24.06.2011. SD/- SD/- MAHAVIR SINGH, JUDICIAL MEMBER . .. .!' !'!' !'. .. . , ,, , #$ #$ #$ #$ , C.D.RAO, ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 24.06.2011. #2 0 .3 4#3(5- COPY OF THE ORDER FORWARDED TO: 1. SHRI SATISH KUMAR SHARMA, PROP. OF M/S. S.K.SHARMA, E-58, LUNA STREET, BIDHANNAGAR, DURGAPUR. 2 THE ACIT, CIRCLE-2, DURGAPUR. 3. THE CIT, 4. THE CIT(A)-DURGAPUR. 5. DR, KOLKATA BENCHES, KOLKATA /3 ./ TRUE COPY, #2&:/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.) 3