Shree Pitamberdas Jodharam, Ahmedabad V. The Income tax Officer,Ward-2(2), Ahmedabad

ITA 520/AHD/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9712 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-12-2016
• Assessment Year: 1995-1996
• Appeal Filed On: 01-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Initiation of penalty proceedings

Judgement Text

I.T.A. NO . 520 /AHD/201 2 A SSESSMENT Y EAR: 1995 - 96 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] I.T.A. NO. 520 /AHD/ 20 1 2 ASSESSMENT Y EAR : 1995 - 96 P ITAMBERDAS JODHARAM, .... . ...... . ... . APPELLANT PROP. ASHA PRINTS, KALUPUR, KOT NI RANG, BHAGWATI CHAM BER, AHMEDABAD 380 002. [ PAN: A A DFP 7228 G ] VS. INCOME TAX OFFICER, WARD 2(2), AHMEDABAD. ... ............ . RESPONDENT APPEARANCES BY: M.K. PATEL, FOR THE APPELLANT K. MADHUSUDAN , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 21. 1 2 .2016 DATE OF PRONOUNCING THE ORDER : 22 . 12 .2016 O R D E R 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CALLED INTO QUESTION CORRECTNESS OF THE ORDER DATED 27.01.2012, PASSED BY THE LEARNED CIT(A), UPHOLDING PENALTY OF RS.3,28,737/ - IMPOSED ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME T A X ACT, 1961, FOR THE ASSESSMENT YEAR 1995 - 96 . 2. THE G RIEVANCE OF THE ASSESSEE IN SUBSTANCE IS THAT THE LEARNED CIT ( A ) HAS ERRED ON FACT S AND IN LAW IN CONF IRMING THE IMPUGNED PENALTY OF RS. 3,28 ,73 7 / - . 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, SHRI MEHUL K. PATEL, L EARNED C OUNSEL FOR THE ASSESSEE , INVITED MY ATTENTION TO H ON BLE JURISDICTIONAL H IGH C OURT S JUDGEMENT DATED 01.07.2016 WHEREIN THE RELATED QUANTUM ADDITIONS HAVE BEEN REMITTED TO THE FILE OF THE A SSESSING OFFICER FOR CONSIDERATION AFRESH IN LIGHT OF THE PRINCIPLE DISCUSSED I.T.A. NO . 520 /AHD/201 2 A SSESSMENT Y EAR: 1995 - 96 PAGE 2 OF 3 HEREINABOVE (IN THE JUDGMENT OF T HEIR LORDSHIPS) . HE SUBMITS THAT AS THE MATTER REGARDING QUANTUM A D DITION HAS B E EN RE MIT TE D TO THE FILE OF THE ASSESSIN G OFFICER, THE VERY FOUNDATION O F THE IMPUGNED PENALT Y CEASES TO HOLD GOOD IN LAW. I AM, THEREFORE , URGE D TO CANCEL THE IMPUGNED PENALTY. 4. SHRI MADHUSUDA N, LEARNED DEPARTMENTAL REPRESENTATIVE, FAIRLY ACCEPTS THAT GIVEN THE FACT THAT HON BLE JURISDICTIONAL HIGH COURT HAS REMITTED THE MATTER TO THE FILE OF ASSESSING OFFICER FOR RECONSIDERATION OF QUANTUM AUDITION , THE IMPUGNED PENALTY IN QUESTION DESERVES TO BE DELETED AT THIS STAGE. HE , HOWEVER , URGES ME TO MAKE IT CLEAR IN MY OR D ER THA T THE ASSESSING OFFICER SHALL BE AT LIBERTY TO TAKE F RESH CALL ON PENALTY ISSUE AFTER FINALISI NG THE QUANTUM ASSESSMENT. 5. IN VIEW OF THE ABOVE DISCUSSIONS, THE IMPUGNED PENALTY DOES INDEED DESERVE TO BE DELETED, AS THE RELATED QUANTUM ADD ITION HA S NOT BEEN APPROVED BY THE HON BLE JURISDICTIONAL HIGH COURT. AS THE L EARNED COUNSEL FOR THE ASSESSEE RIGHTLY PUTS IT, THE VERY FOUNDATION OF THE IMPUGNED PENALTY, IN THE LIGHT OF THIS DEVELOPMENT, CEASES TO HOLD GOOD IN LAW. I AM , HOWEVER , NOT I NCLINED TO GIVE ANY DIRECTION TO THE ASSESSING OFFICER FOR TAKING A FRESH CALL ON THE PENALTY MATTER AFTER THE QUANTUM PROCEEDINGS ARE FINALISED. IT IS FOR THE ASSESSING OFFICER TO DECIDE, EVEN IN THE EVENT OF QUANTU M ADDITION BEING RETALIATED , AS T O WHET HER OR NOT IT IS A FIT CASE FOR INITIATION OF PENALTY PROCEEDINGS UNDER SECTION 271(1) (C) OF THE ACT. I LEAVE IT AT THAT. WITH THE S E OBSERVATIONS, THE IMPUGNED PENALTY STAND S DELETED . 6 . IN THE RESULT, THE APPEAL IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF DECEMBER , 201 6 . SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 22 ND DAY OF DECEMBER , 2016. I.T.A. NO . 520 /AHD/201 2 A SSESSMENT Y EAR: 1995 - 96 PAGE 3 OF 3 PBN/* COPIES TO: (1) THE APPELLANT (2) THE R ESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD