Smt. Surinder Kaur, Bhopal V. ACIT (Central)-2, Bhopal

ITA 907/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0807 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 07-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.906 & 907/IND/2019 ASSESSMENT YEARS: 2012-13 & 2013-14 APPELLANT BY SHRI ASHISH GOYAL, ADV REVENUE BY SHRI R.P. MOURYA , SR. DR DATE OF HEARING 1 0.06 .2020 DATE OF PRONOUNCEMENT 11 .0 6 .2020 O R D E R PER MANISH BORAD, AM. THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-3, BHOPAL DATED 16.08.2019 PERTAINING TO ASS ESSMENT YEAR 2016-17. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; SMT. SURINDER KAUR, E-1/165, ARERA COLONY, BHOPAL VS. A CIT (CENTRAL) - 2, BHOPAL (APPELLANT) (REVENUE ) PAN ABDPK7814J ITA NO.906&907/IND/2019 SMT. SURINDER KAUR 2 ITA NO.906/IND/2019 ASSESSMENT YEAR 2012-13 ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE:- 1.THE ID CIT(A) WAS NOT JUSTIFIED IN SUSTAINING TH E PENALTY ORDER U/S 271(1)(C), WHICH IS BAD-IN-LAW, VOID-AB-INITIO, BA RRED BY LIMITATION, ILLEGAL, CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CAS E, LIABLE TO BE ANNULLED. 2.THAT THE ID CIT(A) WAS NOT JUSTIFIED IN SUSTAINI NG THE LEVY OF PENALTY U/S 271(1)(C) AMOUNTING TO RS. 3,75,000/- WITHOUT CONS IDERING THE FACTS AND SUBMISSIONS OF THE CASE. 3.THAT THE ID CIT(A) WAS NOT JUSTIFIED IN SUSTAINI NG THE PENALTY ON UNDISCLOSED INVESTMENT OF RS.11,47,348/- WHEN THE ADDITION WAS DELETED BY HON'BLE ITAT, INDORE BENCH VIDE ORDER NO ITA 98 /2017 DATED 23.08.2019. 4.THAT THE ID CIT(A) WAS NOT JUSTIFIED IN DISMISSI NG THE APPEAL ON ACCOUNT OF NONAPPEARANCE, WITHOUT CONSIDERING THE FACT THA T THE NOTICE FOR HEARING ON DIFFERENT DATES WERE SERVED AT THE OLD ADDRESS AND NOT AT THE ADDRESS MENTIONED IN FORM 35. THUS, OPPORTUNITY OF BEING H EARD WAS NOT PROVIDED. THE APPELLANT CARVES LEAVE TO ADD, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL. ITA NO.907/IND/2019 ASSESSMENT YEAR 2013-14 1.THE ID CIT(A) WAS NOT JUSTIFIED IN SUSTAINING THE PENALTY ORDER U/S 271AAB, WHICH IS BAD-IN-LAW, VOID-AB-INITIO, BARRE D BY LIMITATION, ILLEGAL, ITA NO.906&907/IND/2019 SMT. SURINDER KAUR 3 CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CAS E, LIABLE TO BE ANNULLED. 2.THAT THE ID CIT(A) WAS NOT JUSTIFIED IN SUSTAINI NG THE LEVY OF PENALTY U/S 271AAB AMOUNTING TO RS. 75,000/- WITHOUT CONSIDERI NG THE FACTS AND SUBMISSIONS OF THE CASE. 3.THAT THE ID CIT(A) WAS NOT JUSTIFIED IN DISMISSI NG THE APPEAL ON ACCOUNT OF NONAPPEARANCE, WITHOUT CONSIDERING THE FACT THA T THE NOTICE FOR HEARING ON DIFFERENT DATES WERE SERVED AT THE OLD ADDRESS AND NOT AT THE ADDRESS MENTIONED IN FORM 35. THUS, OPPORTUNITY OF BEING H EARD WAS NOT PROVIDED. THE APPELLANT CARVES LEAVE TO ADD, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE QUANTUM ADDITION ON WHICH THE PENALTY HAS BEEN LEVI ED U/S 271(1)(C) OF THE ACT U/S 271AAB OF THE ACT FOR ASSE SSMENT YEAR 2012-13 AND 2013-14 STANDS DELETED BY THE TRIBUNAL VIDE ITA NO.98/IND/17 DATED 23.8.2019 AND ITA NO.273/IND/17 DATED 14.1.2020. HE FURTHER SUBMITTED THAT THOUGH THE IM PUGNED ORDERS ARE EX-PARTE BUT STILL LOOKING TO THE FACT THAT QUANTUM ADDITION HAS ITSELF BEEN DELETED, THE PENALTIES LEVIED MAY BE DE LETED. 4. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE THOUG H SUPPORTED THE ORDERS OF LOWER AUTHORITIES BUT COULD NOT CONTR OVERT THE FACT THAT ITA NO.906&907/IND/2019 SMT. SURINDER KAUR 4 THE VERY BASIS OF LEVYING THE PENALTY I.E. QUANTUM ADDITION HAS BEEN DELETED BY THE TRIBUNAL. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE INSTANT TWO APPEALS ARE AGAI NST THE ORDER OF LD. CIT(A) CONFIRMING THE LEVY OF PENALTY AT RS.3, 75,000/- AND RS.75,000/- U/S 271(1)(C) AND 271AAB OF THE ACT RESPECTIVELY. THESE PENALTIES WERE LEVIED ON THE ADDITION RS.11,4 7,348/- AND RS.2,27,609/- FOR ASSESSMENT YEAR 2012-13 AND ASSES SMENT YEAR 2013-14 RESPECTIVELY. WE ALSO FIND THAT THE TRIBUN AL VIDE ITA NO.98/IND/17 DATED 23.8.2019 AND ITA NO.273/IND/17 DATED 14.1.2020 HAS DELETED THE QUANTUM ADDITION OF RS. 1 1,47,348/- AND RS.2,27,609/- FOR ASSESSMENT YEAR 2012-13 AND A SSESSMENT YEAR 2013-14 RESPECTIVELY. SINCE THE VERY BASIS OF LEVYING THE PENALTY STANDS DELETED THE PENALTIES SO LEVIED DO N OT DESERVES TO STAND FOR SINCE THE FOUNDATION OF THE LEVYING PENAL TY I.E. THE ADDITION STANDS DELETED. 6. THOUGH THE ORDER OF LD. CIT(A) IS EX-PARTE AND NOTHING HAS BEEN DEALT ON MERITS, BUT IN THE GIVEN CIRCUMSTANCE S, WE FIND NO REASON TO SET ASIDE THE ISSUES RAISED IN THESE INST ANT APPEALS TO LD. ITA NO.906&907/IND/2019 SMT. SURINDER KAUR 5 CIT(A). THEREFORE LOOKING TO THE FACT THAT QUANTUM ADDITION HAS ITSELF HAS BEEN DELETED, WE DELETE THE PENALTY OF RS.3,75,000/- AND RS.75,000/- LEVIED BY THE LD. A.O U/S 271(1)(C) AND 271AAB OF THE ACT FOR ASSESSMENT YEAR 2012-13 AND 2013-14 RESPECT IVELY. THUS THE ORDER OF THE LD. CIT(A) IS SET ASIDE AND GROUND S RAISED IN BOTH THE APPEALS OF THE ASSESSEE IN ITA NO./906/IND/2019 AND ITA NO.907/IND/2019 ARE ALLOWED. 6. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE IN ITA NO./906/IND/2019 AND ITA NO.907/IND/2019 STANDS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11 .06.2020. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 11 JUNE, 2020 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE