SHRI JASPAL SINGH, AMRITSAR V. INCOME TAX OFFICER,WARD 5(2), AMRITSAR

ITA 650/ASR/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3350 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 20-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 11-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADAM BAHL
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (SMC) BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER I.T.A. NO. 650/ASR/2017 AS SESSMENT YEAR: 2004-05 JASPAL SINGH, 45-GF, B-BLOCK, RANJIT AVENUE, AMRITSAR. [PAN: ABQPS 7190G] VS. INCOME TAX OFFICER, WARD-5(2), AMRITSAR (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PADAM BAHL (C.A. ) RESPONDENT BY: SH. CHARAN DASS (D.R.) DATE OF HEARING: 26.02.2019 DATE OF PRONOUNCEMENT: 26.02.2019 ORDER PER SANJAY ARORA, AM: THIS IS AN APPEAL BY THE ASSESSEE AGITATING THE ORD ER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-2, AMRITSAR ('CIT(A)' FOR S HORT) DATED 13.07.2017, DISMISSING THE ASSESSEES APPEAL CONTESTING THE LEV Y OF PENALTY U/S. 271(1)(B) OF THE INCOME TAX ACT, 1961 ('THE ACT' HEREINAFTER) VIDE O RDER DATED 30.08.2016 FOR THE ASSESSMENT YEAR (AY) 2004-05. 2. AT THE OUTSET, THE ASSESSEE COUNSEL, SH. BAHL, W OULD PRAY FOR ADMISSION AND ADJUDICATION OF THE ASSESEES ADDITIONAL GROUND, BE ING LEGAL, GOING TO THE ROOT OF THE MATTER, WITH THE RELEVANT FACTS BEING ON RECORD. T HE IMPUGNED ORDER, IT IS THEREBY STATED, IS NON-EST IN-AS-MUCH AS THE SAME IS BARRED BY TIME. THE PENALTY WAS INITIATED BY THE ASSESSING OFFICER (AO) UPON RECORD ING HIS SATISFACTION FOR THE ITA NO. 650/ASR/2017 (AY 2004-05) JASP AL SINGH V. ITO 2 SAME IN THE ASSESSMENT ORDER DATED 21.12.2011, ISSU ING NOTICE U/S. 274 QUA THE SAME ON THE SAME DATE (COPY ON RECORD). THE TIME LI MIT FOR THE LEVY OF PENALTY IS ACCORDINGLY COVERED UNDER SECTION 275(1)(C), I.E., WHERE THE RELEVANT ASSESSMENT OR OTHER ORDER IS NOT THE SUBJECT MATTER OF EITHER APP ELLATE OR REVISION PROCEEDINGS. THE TIME LIMIT ACCORDINGLY IS BEFORE THE EXPIRY OF THE FINANCIAL YEAR IN WHICH THE PROCEEDINGS, IN THE COURSE OF WHICH ACTION FOR THE IMPOSITION OF PENALTY HAS BEEN INITIATED , ARE COMPLETED (31.3.2012), OR SIX MONTHS FROM THE END OF THE MONTH OF THE SAID ACTION (30.6.2012). THE PENALTY LEVIED VID E ORDER DATED 30.8.2016 IS THUS NON-EST. RELIANCE WAS PLACED ON THE DECISION IN AHUJA RICE AND GENERAL MILLS VS. DY. CIT [1999] 69 ITD 0329 (ASR). THE LD. DEPARTMENTAL REPRESENTATIVE (DR) COULD NOT SHOW ANY INFIRMITY IN THE CONTENTIONS RAISED BY THE LD. AR, SH. BAHL. 3. I HAVE HEARD THE PARTIES, AND PERUSED THE MATERI AL ON RECORD. THE RELEVANT FACTS NECESSARY FOR DECIDING THE APPE AL ARE ON RECORD; IN FACT, ADMITTED. THE LEVY OF PENALTY U/S. 271(1)( B) IS FO R FAILURE TO COMPLY WITH SPECIFIED NOTICES, BEING NOTICE U/S 142(1) (DATED 05.7.2011) IN THE INSTANT CASE. THE SAME, ACCORDINGLY, HAS NOTHING TO DO WITH THE RELEVANT AS SESSMENT ORDER BEING SUBJECT TO THE APPELLATE PROCEEDINGS, BEING IN FACT OUTSTANDIN G BEFORE THE APPELLATE TRIBUNAL AT PRESENT. FURTHER, THERE IS NOTHING TO SUGGEST TH AT THE ASSESSMENT IS SUBJECT TO REVISION, NOR ANY INTENTION TO THAT EFFECT. THE TIM E LIMIT U/S. 275(1)(C) WOULD ACCORDINGLY APPLY, WHEREBY THE LATER OF THE TWO DAT ES AFORE-STATED, I.E., 30.6.2012, SHALL HOLD. THE PENALTY ORDER IS DATED 30.8.2016, A ND IS ACCORDINGLY BARRED BY TIME, AND THE PENALTY IMPOSED THEREBY A NULLITY IN LAW. AS PENALTY ORDER HAS BEEN ANNULLED, THERE IS NO OCC ASION OR EVEN A QUESTION OF GOING TO THE MERITS OF THE ASSESSEES APPEAL, I. E. AS DECIDED BY THE LD. CIT(A). I DECIDE ACCORDINGLY. ITA NO. 650/ASR/2017 (AY 2004-05) JASP AL SINGH V. ITO 3 4. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN CO URT ON FEBRUARY 26, 2019 SD/- (SANJAY ARORA) ACCOUNTANT MEMBER DATE: 26.02.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: SH. JASPAL SINGH, 45-GF, B-B LOCK, RANJIT AVENUE, AMRITSAR (2) THE RESPONDENT: INCOME TAX OFFICER,WARD-5(2 ), AMRITSAR (3) THE CIT(APPEALS)-2, AMRITSAR (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T TRUE COPY BY ORDER