The Dy. Commissioner of Income-tax, Hoshiarpur V. Sh. Mangat Trehan, Contractor, Hoshiarpur

ITA 61/ASR/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2252 (ITAT-AMRITSAR)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 28-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.61(ASR)/2013 ASSESSMENT YEAR:2007-08 PAN :ACAPT2109H THE DY. C.I.T. VS. SH. MANGAT TREHAN, CONTRACTOR, HOSHIARPUR CIRCLE, TREHAN CONSTRUCTION CO. HOSHIARPUR. TANDA ROAD, HOSHIARPUR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH.AMRIK CHAND, DR RESPONDENT BY:SH.SURINDER MAHAJAN, CA DATE OF HEARING: 01/04/2013 DATE OF PRONOUNCEMENT:02/04/2013 ORDER PER BENCH ; THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER O F THE CIT(A), JALANDHAR, DATED 09.11.2012 FOR THE ASSESSMENT YEAR 2007-08. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE PENALTY AM OUNTING TO RS.9,18,360/- IMPOSED BY THE AO. 2. THAT, IT IS PRAYED THAT THE ORDER OF THE LD. CI T(A) BE SET ASIDE AND THAT OF THE A.O. RESTORED. 2 3. THAT THE APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEND OR ALTER THE GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD A ND DISPOSED OF. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSMENT IN THIS CASE WAS MADE U/S 143(3) OF THE ACT ON 24.12.2008. PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED BY THE A.O. ON 14.03.2012. BEFORE TH E LD. CIT(A), THE LD. COUNSEL FOR THE ASSESSEE PLEADED THAT THE ITAT, AMR ITSAR BENCH, VIDE ITS ORDER IN ITA NO.25(ASR)/2011 DATED 26.04.2012 FOR T HE ASSESSMENT YEAR 2007-08 HAD QUASHED THE ASSESSMENT MADE IN QUANTUM PROCEEDINGS AND IN CONSEQUENCE THEREOF, NO PENALTY ORDER SURVIVES AS T HE RETURNED INCOME AND THE ASSESSED INCOME REMAINS THE SAME. 3. THE LD. CIT(A) VIDE PARA 7 OF HIS ORDER CANCELLE D THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT, AS A CONSEQUENCE OF ITAT S ORDER DATED 26.04.2012 (SUPRA). SINCE THERE REMAINS NO INCOME ON WHICH PEN ALTY IS LEVIED AND QUANTUM ADDITION DOES NOT SURVIVE THERE IS NO GROUN D LEFT FOR THE PENALTY TO SURVIVE. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. SINCE THE ITAT, AMRITSAR BENCH IN ITA NO.25(ASR)/ 2011 VIDE ITS ORDER DATED 26.04.2012 HAS QUASHED THE ASSESSMENT MADE IN QUANTUM PROCEEDINGS AND THEREFORE, WHEN QUANTUM ADDITION DOES NOT SURV IVE, THERE IS NO GROUND LEFT FOR PENALTY TO SURVIVE. ACCORDINGLY, WE DO NOT FIND ANY INFIRMITY IN THE 3 ORDER OF THE LD. CIT(A), WHO HAS RIGHTLY CANCELLED THE PENALTY LEVIED BY THE A.O. THUS, ALL THE GROUNDS OF THE REVENUE ARE DISMI SSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.61(ASR)/2013 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2ND APRIL, 2013. SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2ND APRIL, 2013 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:SHRI MANGAT TREHAN, CONTRACTOR, HOSHIA RPUR. 2. THE DCIT, HOSHARPUR CIRCLE, HOSHIARPUR. 3. THE CIT(A), JALANDHAR. 4. THE CIT, JALANDHAR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.