Rakesh Khanna, New Delhi V. ITO, New Delhi

ITA 6498/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2893 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2005-2006
• Appeal Filed On: 28-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reassessment proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.6498/DEL/2014 ASSESSMENT YEAR : 2005-06 RAKESH KHANNA, H-11, CONNAUGHT PLACE, NEW DELHI. VS. ITO, WARD- 15(2), NEW DELHI. PAN : AHJPK4120D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VISHAL KALRA, ADV. DEPARTMENT BY : SHRI ATIQ AHMAD, SR.DR DATE OF HEARING : 27-12-2017 DATE OF PRONOUNCEMENT : 27-12-2017 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 15.09.2014 OF THE CIT(A)-XVIII, NEW DELHI RELATING TO ASSESSMENT YEAR 2005-06. 2. LEVY OF PENALTY OF RS.8,20,594/- BY THE ASSESSIN G OFFICER U/S 271(1)(C) OF THE I.T. ACT AND UPHELD BY THE LD. CIT(A) IS THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. 3. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET FILED A COPY OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE AND SUBMITTED THAT THE RE-ASSESSMENT PROCEEDINGS INITIATED BY THE ASSESSING OFFICER HAS BEEN QUASHED. THEREFORE, THE 2 ITA NO.6498/DEL/2014 VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER IN THE ORDER PASSED U/S 147/143(3) DOES NOT SURVIVE. SINCE THE ASSESSMENT ORDER HAS BEEN QUASHED, THEREFORE, THE PENALTY HAS NO LEGS TO STAND AND, TH EREFORE, THE PENALTY SO LEVIED BY THE ASSESSING OFFICER AND UPHELD BY THE LD. CIT( A) HAS TO BE DELETED. 4. LD. DR ON THE OTHER HAND FAIRLY SUBMITTED THAT T HE TRIBUNAL HAS QUASHED THE REASSESSMENT PROCEEDINGS INITIATED BY THE ASSES SING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES AND FIND THAT AS AGAINST THE INCOME OF RS.8,91,218/- DECLARE D BY THE ASSESSEE IN THE RETURN FILED ORIGINALLY ON 24.03.2006, THE ASSESSING OFFIC ER COMPLETED THE ASSESSMENT U/S 147/143(3) ON 23.10.2010 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.56,19,570/-. WE FIND THE TRIBUNAL VIDE ITA NO.2 51/DEL/2012 ORDER DATED 28.11.2014 FOR ASSESSMENT YEAR 2005-06 HAS HELD THA T THE REASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS WITHOUT JURISDIC TION, BAD IN LAW, VOID AB INITIO AND ACCORDINGLY THEY CANCELLED THE ORDER PASSED BY THE LD. CIT(A) IN CONFIRMING THE VARIOUS ADDITIONS. SINCE THE REASSE SSMENT PROCEEDINGS HAVE BEEN HELD TO BE VOID AB INITIO , THEREFORE, THE VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LD. CIT(A) D OES NOT SURVIVE. THEREFORE, THE PENALTY LEVIED ON ACCOUNT OF VARIOUS ADDITIONS ALSO DOES NOT SURVIVE. ACCORDINGLY, THE PENALTY SO LEVIED BY THE ASSESSING OFFICER AND UPHELD BY THE LD. CIT(A) IS DIRECTED TO BE DELETED. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED. 3 ITA NO.6498/DEL/2014 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME HEA RING ITSELF I.E. ON THIS 27 TH DAY OF DECEMBER, 2017. SD/- SD/- (SUCHITRA KAMBLE) (R. K. P ANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27-12-2017. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI