Sh. Rajiv Kumar, Mohali V. DCIT, Chandigarh

ITA 738/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8363 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 13-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 08-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 738/CHD/2016 ASSESSMENT YEARS: 2007-08 SHRI RAJIV KUMAR, VS THE DCIT, HOUSE NO. 123, PHASE 3B1 CENTRAL CIRCLE-1, MOHALI. CHANDIGARH. PAN: AFYPK8488H & ITA NOS. 276/CHD/2014 ASSESSMENT YEARS: 2007-08 SHRI S.L.ARORA, VS THE DCIT, HOUSE NO. 123, PHASE 3B1 CENTRAL CIRCLE-1, MOHALI. CHANDIGARH. PAN: ACLPA9483C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PARIKSHIT AGGA RWAL RESPONDENT BY : SHRI RAVI SARANGAL,CIT-DR DATE OF HEARING : 13.02.2017 DATE OF PRONOUNCEMENT : 13.02.2017 O R D E R PER BHAVNESH SAINI,JM BOTH THE APPEALS BY DIFFERENT ASSESSEES ARE DIRECT ED AGAINST DIFFERENT ORDERS OF LD. CIT(APPEALS)-3, GUR GAON DATED 29.04.2016 FOR ASSESSMENT YEAR 2007-08 AND DATED 13 .01.2014 FOR ASSESSMENT YEAR 2007-08 CHALLENGING THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF INCOME TAX ACT. 2 2. BRIEFLY THE FACTS OF THE CASE ARE THAT SEARCH & SEIZURE OPERATION WAS CONDUCTED ON 10.08.2006. THE ASSESSI NG OFFICER PASSED THE ASSESSMENT ORDERS UNDER SECTION 153A REA D WITH SECTION 143(3) OF THE ACT IN BOTH THE CASES. CERTA IN ADDITIONS WERE MADE IN THESE ASSESSMENT ORDERS WHICH WERE BAS IS FOR LEVYING THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT. THE LD. CIT(APPEALS) CONFIRMED THE LEVY OF PENALTY. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT THE ASSESSEES PREFERRED QUANTUM APPEALS BEFORE ITAT CHANDIGARH. IN THE CASE OF SHRI RAJIV KUMAR, THE AS SESSEE FILED APPEAL IN ITA 41/2011 FOR ASSESSMENT YEAR 2007-08 A ND IN THE CASE OF SHRI S.L.ARORA, APPEAL WAS PREFERRED IN ITA 1327/2010 FOR ASSESSMENT YEAR 2007-08. BOTH THESE APPEALS AL ONGWITH OTHER APPEALS HAVE BEEN DECIDED BY THE TRIBUNAL VID E ORDER DATED 22.12.2016 AND IT WAS HELD THAT SINCE SEARCH TOOK PLACE ON 10.08.2006, THE RELEVANT PREVIOUS YEAR IS 2006-0 7 WHICH ENDS ON 31.03.2007. THEREFORE, ASSESSMENT UNDER SE CTION 153A OF THE ACT COULD HAVE BEEN FRAMED FOR ASSESSME NT YEARS, 2001-02 TO 2006-07 ONLY AND NOT FOR ASSESSMENT YEAR 2007-08 UNDER APPEAL. THE ASSESSMENT ORDER UNDER SECTION 1 53A OF THE ACT WAS FOUND NOT VALID IN THE EYES OF LAW AND VOID ABINITIO, THE SAME WAS QUASHED. THE APPEALS OF THE ASSESSEE WERE ACCORDINGLY, ALLOWED. COPY OF THE ORDER IS PLACED O N RECORD AND PROVIDED TO THE LD. DR. THE LD. DR DID NOT DISPUTE THE QUANTUM ORDER DATED 22.12.2016. 4. CONSIDERING THE ABOVE FACTS IN THE LIGHT OF THE QUANTUM ORDER OF THE TRIBUNAL DATED 22.12.2016, WE ARE OF T HE VIEW THAT 3 ONCE QUANTUM ASSESSMENT ORDERS UNDER SECTION 153A H AVE BEEN FOUND TO BE INVALID AND VOID ABINITIO AND HAVE BEEN QUASHED, THEREFORE, VERY BASIS OF LEVY OF THE PENALTY HAS GO NE. THERE IS, THUS, NO BASIS LEFT FOR LEVY OF THE PENALTY AGAINST THE ASSESSEE. THE ORDERS OF AUTHORITIES BELOW ARE ACCORDINGLY, SE T ASIDE AND LEVY OF PENALTY IS CANCELLED IN BOTH THE APPEALS. 5. IN THE RESULT, BOTH APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SA INI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13 TH FEBRUARY,2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD