ACIT Central Circle 3(1), CHENNAI V. Sasikala Raghupathy, CHENNAI

ITA 582/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7480 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 06-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: T SANDHYAARTI
• Keywords: Condonation of delay
• Section: 271(1)(c); 143(3); 54F; 153A; 139(1); 147; 263; 132

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A. NO.582/CHNY/2019 / ASSESSMENT YEAR: 2008-09 & C.O. NOS. 53 AND 59/CHNY/2019 [IN I.T.A. NO. 582/CHNY/2019] THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3(1), CHENNAI. VS. MS. SASIKALA RAGHUPATHY, NEW NO. 60, OLD NO. 100, IV STREET, ABHIRAMAPURAM, CHENNAI 600 034. [ PAN: AAFPR5481B] ( /APPELLANT) ( /RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : SHRI S. BHARATH, CIT /RESPONDENT BY : MS.T. SANDHYAARTI, C.A. / DATE OF HEARING : 24.08.2021 /DATE OF PRONOUNCEMENT : 30.08.2021 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 19, CHENNAI, DATED 26.11.2018 RELEVANT TO THE ASSESSMENT YEAR 2008-09. 2. THE APPEAL OF THE REVENUE IS DELAYED BY 24 DAYS IN FILING THE APPEAL. THE DEPARTMENT HAS FILED A PETITION FOR CONDONATION OF DELAY IN FILING THE APPEAL IN THE FORM OF AN AFFIDAVIT. WE HAVE GONE THROUGH THE AFFIDAVIT AND FIND THAT THE DEPARTMENT WAS PREVENTED BY SUFFICIENT CAUSE FOR THE DELAY IN I.T.A. NO. 582/CHNY/2019 & C.O. NOS. 53 & 59/CHNY/2019 2 FILING THE APPEAL. ACCORDINGLY, THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR ADJUDICATION. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED THE ORIGINAL RETURN OF INCOME UNDER SECTION 139(1) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] ON 30.07.2008 DECLARING INCOME OF .35,00,774/-. SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED UNDER SECTION 147 OF THE ACT ACCEPTING THE RETURNED INCOME. THEREAFTER, THE LD. PCIT INITIATED PROCEEDINGS UNDER SECTION 263 OF THE ACT. MEANWHILE A SEARCH UNDER SECTION 132 OF THE ACT WAS CONDUCTED ON 18.02.2014. CONSIDERING THE SAME, THE PROCEEDINGS UNDER SECTION 263 OF THE ACT WAS DROPPED AND PROCEEDINGS UNDER SECTION 153A OF THE ACT WERE INITIATED. THE ASSESSEE FILED RETURN IN RESPONSE TO THE NOTICE UNDER SECTION 153A AND THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 153A OF THE ACT WAS COMPLETED BY DISALLOWING THE EXEMPTION CLAIMED UNDER SECTION 54F OF .46,19,92,974/- RESULTING IN A TAX DEMAND OF .21,14,39,653/-. ON APPEAL, THE LD. CIT(A) CONFIRMED THE ORDER PASSED BY THE ASSESSING OFFICER. MEANWHILE, THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSING OFFICER LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT OF .15,70,31,411/-. AGAINST THE PENALTY ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A). SINCE THE QUANTUM ADDITION ON ACCOUNT OF ASSESSMENT PROCEEDINGS HAS BEEN DECIDED AGAINST THE REVENUE I.T.A. NO. 582/CHNY/2019 & C.O. NOS. 53 & 59/CHNY/2019 3 BY THE ITAT BY ORDER DATED 16.10.2018 IN I.T.A. NO. 366/CHNY/2018 FOR THE ASSESSMENT YEAR 2008-09, THE LD. CIT(A) DELETED THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. DR HAS SUBMITTED THAT THE DEPARTMENT HAS NOT ACCEPTED THE DECISION TOWARDS QUANTUM ADDITION AND PREFERRED AN APPEAL BEFORE THE HONBLE JURISDICTIONAL HIGH COURT AGAINST THE ORDER OF THE ITAT AND PLEADED FOR REVERSING THE ORDER PASSED BY THE LD. CIT(A). 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE STRONGLY SUPPORTED THE ORDER OF THE LD. CIT(A). 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS AN ADMITTED FACT THAT AGAINST THE CONFIRMATION OF QUANTUM ADDITION, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE ITAT AND VIDE ITS ORDER IN I.T.A. NO. 366/CHNY/2018 FOR THE ASSESSMENT YEAR 2008-09 DATED 16.10.2018, THE TRIBUNAL HAS DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION. SINCE THE ADDITION ON ACCOUNT OF ASSESSMENT PROCEEDINGS HAS BEEN DECIDED AGAINST THE REVENUE, THE LD. CIT(A) HAS RIGHTLY HELD THAT THE PENALTY PROCEEDINGS WHICH ARE IN CONSEQUENCE OF THE ASSESSMENT PROCEEDINGS CANNOT STAND AND ALLOWED THE APPEAL FILED BY THE ASSESSEE. THE LD. DR COULD NOT CONTROVERT I.T.A. NO. 582/CHNY/2019 & C.O. NOS. 53 & 59/CHNY/2019 4 THE ORDER PASSED BY THE TRIBUNAL AGAINST THE QUANTUM ADDITION BY FILING HIGHER COURT DECISION HAVING MODIFIED OR REVERSED. JUST BECAUSE THE DEPARTMENT PREFERRED AN APPEAL BEFORE THE HONBLE HIGH COURT, WE ARE UNABLE TO TAKE A DIFFERENT VIEW IN THE ABSENCE OF ANY RELEVANT JUDGEMENT. IN VIEW OF THE ABOVE, THE CONTENTION OF THE REVENUE IS DEVOID OF MERITS AND THUS, THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. 6.1 SINCE WE HAVE SUSTAINED THE ORDER OF THE LD. CIT(A) ON THIS ISSUE, THE CROSS OBJECTION IN C.O. NO. 53/CHNY/2019 FILED BY THE ASSESSEE BECAME INFRUCTUOUS AND ACCORDINGLY DISMISSED. ONE SET OF PAPERS OF CO FILE AGAINST THE DEFECT NOTICE WAS ALSO NUMBERED AS C.O. NO. 59/CHNY/2019 STANDS DISMISSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED. ORDER PRONOUNCED ON THE 30 TH AUGUST, 2021 AT CHENNAI. SD/- SD/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 30.08.2021 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.