M/s. Sanghvi Dhiraji Bhutaji & Sons, Pune V. ITO, Pune, Pune

ITA 65/PUN/2010

• Counselvise Citation: 6524514 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 14-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS MALHOTRA
• Assessee Lawyers: NILESH KHANDELWAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH: B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI G.S. PANNU, AM I.T.A. NO. 65/PN/2010 BLOCK PERIOD 1996-97 TO 2002-03 SANGHVI DHIRAJ BHUTAJI & SONS 31-A/B TIMBER MARKET, PUNE-411 042 PAN AAEFS 3892 G APPELLANT VS. ASSTT. CIT CENT. CIR. 1(2) PUNE RESPONDENT I.T.A. NO. 66/PN/2010 BLOCK PERIOD 1996-97 TO 2002-03 MANRUPLAL MALAJI SANGHVI HUF PROP. SANGHVI DHIRAJI BHUTAJI & SONS 31-A/B TIMBER MARKET, PUNE-411 042 PAN AABHS 9479 Q APPELLANT VS. ASSTT. CIT CENT. CIR. 1(2) PUNE RESPONDENT APPELLANTS BY : SHRI NILESH KHANDELWAL RESPONDENT BY: MRS. MALHOTRA ORDER PER SHAILENDRA KUMAR YADAV THESE TWO APPEALS BY DIFFERENT ASSESSEES ARE DIRECT ED AGAINST IDENTICAL ORDERS OF CIT (A) I PUNE DATED 28-6-2007 FOR THE BLOCK PERIOD 1996-97 TO 2002-03 ON THE POINT OF ENHANCEMENT OF PENALTY OF RS. 33,51,030/- IN THE CA SE OF ITA NO. 65 & 66/PN/2010 SANGHVI GROUP BLOCK PERIOD: 1996-97 TO 2002-03 - 2 - SANGHVI DHIRAJI BHUTAJI & SONS AND RS. 68,38,199/- IN THE CASE OF MANRUPLAL MALAJI SANGHVI HUF LEVIED BY THE ASSESSING OFFICER U/S 158BFA(2) OF THE ACT. THE GROUNDS OF A PPEALS AND THE ARGUMENTS OF RIVAL SIDES BEING COMMON IN BOTH T HESE APPEALS, THEY WERE HEARD TOGETHER AND ARE BEING DIS POSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIE NCE. 3. THE LEARNED AR FOR THE SUBMITTED THAT THE IMPUGN ED PENALTY HAS BEEN LEVIED BY THE ASSESSING OFFICER IN RESPECT OF UNDISCLOSED INCOME DETERMINED BY THE ASSESSING OFFI CER U/S 158BC(C) OF THE ACT. FURTHER, THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER AS WELL AS THE FIRST APPELLAT E ORDER WAS THE SUBJECT MATTER OF APPEAL BEFORE THE TRIBUNAL VI DE APPEALS IN ITA NO. 530 AND 464/PN/2007 WHEREIN VIDE ITS ORD ER DATED 28-2-2011 THE TRIBUNAL AFTER ELABORATE DISCUSSIONS SET ASIDE THE ORDERS OF THE CIT(A) ON THE GROUND THAT THE CIT (A) HAS NOT ADDRESSED THE CONTROVERSY IN ITS PROPER PERSPECTIVE WHICH RENDERED THE ORDERS AS A NON-SPEAKING ORDERS AND RE STORED THE MATTER IN QUANTUM PROCEEDINGS IN ITS ENTIRETY BACK TO THE FILE OF CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WI TH LAW. THE LEARNED AR THEREFORE, SUBMITTED THAT THIS MATTER MA Y ALSO BE RESTORED TO THE FILE OF THE CIT(A) FOR DECIDING THE ISSUE AFRESH IN ITA NO. 65 & 66/PN/2010 SANGHVI GROUP BLOCK PERIOD: 1996-97 TO 2002-03 - 3 - ACCORDANCE WITH LAW. ON THE OTHER HAND, THE LEARNED DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE WITH RESPECT TO A DDITION ON ACCOUNT OF UNDISCLOSED INCOME HAS BEEN RESTORED BAC K TO THE FILE OF THE CIT(A) FOR PASSING A REASONED ORDER AFT ER ALLOWING DUE AND PROPER OPPORTUNITY OF HEARING. SINCE THE P EALTY IMPOSED U/S 158BFA(2) IS BASED ON THE ADDITION MADE IN ASSESSMENT PASSED U/S 158BC(C) OF THE ACT, WE ARE O F THE OPINION THAT IMPUGNED PENALTY LEVIED BY THE ASSESSI NG OFFICER AND ENHANCED BY THE CIT(A) IS ALSO REQUIRED TO BE S ET ASIDE AND RESTORED TO THE FILE OF THE CIT(A) FOR PASSING AN ORDER AS PER FACT AND LAW. WE DO SO ACCORDINGLY. NEEDLESS TO SAY, THE CIT(A) SHALL AFFORD A REASONABLE OPPORTUNITY OF BEI NG HEARD. 5. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY 2011. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 31 ST MAY 2011. ANKAM ITA NO. 65 & 66/PN/2010 SANGHVI GROUP BLOCK PERIOD: 1996-97 TO 2002-03 - 4 - COPY OF ORDER FORWARDED TO : 1. ASSESSEES 2. DEPARTMENT 3. CIT(A) I PUNE 4. CIT - I PUNE 5. ITAT, D.R. B BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE.