Texas Woollen Mills (P) Ltd., Ludhiana V. JCIT, Ludhiana

ITA 725/CHANDI/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3780 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 06-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: INOSHI SHARMA
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 726/CHD/2016 ASSESSMENT YEAR: 2013-14 THE DCIT, VS SHRI AMANDEEP YOGI, CENTRAL CIRCLE, S/O LATE SHRI RAM NATH YOGI, PATIALA. H.NO. 720, GALI NO. 7, GURBAX COLONY, PATIALA. PAN: ACBPY8655J (APPELLANT) (RESPONDENT) APPELLANT BY : MS. INOSHI SHARMA, DR RESPONDENT BY : NONE DATE OF HEARING : 07.11.2016 DATE OF PRONOUNCEMENT : 07.11.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-5 LUDHIANA DATED 17.03.2016 FOR ASSESSMENT YEAR 2013-2014 CANCELING PENALTY UNDER SECTION 271AAA OF THE INCOME TAX ACT. 2. THE BRIEF FACTS ARE THAT THE ASSESSING OFFICER H AS BROUGHT ON RECORD THE FACTS THAT SEARCH & SEIZURE OPERATION UNDER SECTION 132 OF THE INCOME TAX ACT I N THIS CASE WAS CONDUCTED ON 13.09.2012. THE 2 ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E ACT DATED 28.01.2014 DETERMINING TOTAL INCOME AT RS . 2,58,82,000/-. THE PENALTY UNDER SECTION 271AAA OF THE ACT WAS LEVIED SEPARATELY. THE ASSESSEE, APART FRO M CHALLENGING THE PENALTY ORDER ON MERIT HAS ALSO CONTENDED BEFORE LD. CIT(APPEALS) THAT IN THIS CASE SEARCH WAS CONDUCTED ON 13.09.2012 WHEREAS THE PROVISIONS OF SECTION 271AAA ARE APPLICABLE ONLY IN THE CASE WHERE SEARCH HAS BEEN INITIATED UNDER SECTION 132 OF THE ACT ON OR AFTER THE FIRST DAY OF JUNE,2007 B UT BEFORE 01.07.2012, THEREFORE, LEVY OF PENALTY UNDER SECTION 271AAA IS VOID ABINITIO AND IS LIABLE TO BE QUASHED. 3. THE LD. CIT(APPEALS) REPRODUCED THE ABOVE PROVISIONS IN THE ORDER AND FOUND THE CONTENTION OF THE ASSESSEE TO BE CORRECT BECAUSE IN THIS CASE SEARCH WAS CONDUCTED ON 13.09.2012 AND PROVISIONS OF SECTION 271AAA ARE APPLICABLE ON SEARCHES CONDUCTED UPTO 01.07.2012. THE PENALTY ORDER WAS, THEREFORE, FOUN D VOID ABINITIO AND QUASHED ACCORDINGLY. 4. AFTER CONSIDERING SUBMISSIONS OF LD. DR, WE DO N OT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. THE LD. DR COULD NOT CONTRIBUTE ANYTHING ON THIS ISSUE AND NO INFIRMITY HAVE BEEN POINTED OUT IN THE ORDER OF THE LD. CIT(APPEALS). SINCE SEARCH IN THIS CASE HAS BEEN CONDUCTED ON 13.09.2012, THEREFORE, PROVISIONS OF SECTION 271AAA WOULD NOT APPLY IN THE CASE OF THE 3 ASSESSEE BECAUSE IT COVERED THE SEARCHES UPTO 01.07.2012. THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL. SAME IS, ACCORDINGLY, DISMISSED. 5. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH S AINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH NOVEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD