SHRI MEHMOOD MANSOORI, Mandsaur V. THE DCIT, Ratlam

ITSSA 103/IND/2015

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3802 (ITAT-INDORE)
• Duration Of Justice: 3 year(s) 26 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 02-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Assessee Lawyers: S S DESHPANDE
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER IT(SS) A NO.103/IND/2015 ASSESSMENT YEAR : 01.04.1996 TO 07.08.2002 SHRI MEHMOOD MANSOORI, 90, GHOUS MANZIL, CHOUDHARY COLONY, MANDSAUR, INDORE / VS. D CIT - RATLAM ( APPELLANT ) ( REVENUE ) P.A. NO. AFIPM2309D APPELLANT BY SHRI S.S. DESHPANDE , CA REVENUE BY SHRI LAL CHAND CIT - DR DATE OF HEARING: 25.06.2018 DATE OF PRONOUNCEMENT: 29.06.2018 / O R D E R PER MANISH BORAD, A.M: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS), UJJAIN, (IN SHORT CIT(A)), VIDE APPEAL NO. U-205/13-14 ORDER DATED 20.02.2015 WHICH IS ARISING OUT OF THE ORDER U/S 158BFA(2) OF THE INCOME TAX ACT 1961(HEREINAFTER CALLED AS THE ACT) FRAMED ON 29.07.2013 BY ACIT, RATLAM. MEHMOOD MANSOORI 2 2 . THE SOLE GRIEVANCE OF THE ASSESSEE IS AGAINST THE PENALTY OF RS.23,00,000/- CONFIRMED BY THE LD. CIT(A) WHICH WA S LEVIED BY THE LD. AO U/S 158BFA(2) OF THE ACT. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE QUANTUM ISSUE IN THE CASE OF ASSESSEE HAS BEEN DECI DED BY THE COORDINATE BENCH ON 31.05.2018 AND MAJOR ADDITIONS HAVE BEEN SET ASIDE TO THE FILE OF LEARNED ASSESSING OFFICER (IN SHORT LD. AO) FOR AFRESH ADJUDICATION. HE MADE A REQUEST FOR SET ASID E THE ISSUE OF PENALTY ALSO TO THE FILE OF LD. AO. 4. THE LD. DR VEHEMENTLY ARGUED SUPPORTING THE ORDE R OF REVENUE AUTHORITIES. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US. THE ASSESSEE IS AGGRIEVED WITH A PENALTY OF RS.23,00,000/- CONFIRMED BY THE LD. CIT(A) WHICH WA S LEVIED BY THE LD. AO ON VARIOUS ADDITIONS MADE IN THE ASSESSMENT COMPLETED U/S 158BFA(2) OF THE ACT ON 24.08.2004. WE FIND THAT AG AINST THE TOTAL ADDITION, IN FEW CASE ASSESSEE ACCEPTED THE ADDITIO N AND DID NOT FILE ANY APPEAL, IN FEW CASES COORDINATE BENCH OF I.T.A. T. CONFIRMED THE ADDITION, IN SOME CASES ADDITIONS HAVE BEEN DELETED AND IN FEW CASES TRIBUNAL VIDE ORDER DATED 31.05.2018 SET ASID E THE ISSUE TO THE FILE OF LD. AO FOR DE NOVO ADJUDICATION. IT IS SETTLED LAW THAT PENALTY U/S 158BFA(2) OF THE ACT IS LEVIABLE ON THE TAX EVADED AND MEHMOOD MANSOORI 3 EVASION OF TAX IS DEPENDENT ON THE ADDITIONS CONFIR MED IN THE HANDS OF ASSESSEE. 6. IN THE INSTANT APPEAL LOOKING TO THE FACT THAT M AJOR ADDITIONS HAVE BEEN SET ASIDE TO THE FILE OF AO FOR FRESH ADJ UDICATION AND TO CONDUCT NECESSARY VERIFICATION, IT WILL BE TOO EARL Y TO DECIDE AS TO WHETHER PENALTY U/S 158BFA(2) OF THE ACT IS LEVIABL E ON SUCH ADDITION. 7. WE, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTAN CES OF THE CASE, DIRECT THE LD. AO TO CONFIRM THE PENALTY ON THE ADD ITIONS AGAINST WHICH THE ASSESSEE HAS NOT FILED ANY APPEAL BEFORE THE HIGHER APPELLATE AUTHORITIES, CONFIRM THE PENALTY FOR THE ADDITIONS WHICH HAVE CONFIRMED BY THE TRIBUNAL. HOWEVER PENALTY LEV IED ON THE ADDITIONS WHICH HAVE BEEN DELETED BY THE COORDINATE BENCH NEEDS TO BE DELETED. 8. AS FAR AS REMAINING ADDITIONS ARE CONCERNED WHIC H HAVE BEEN SET ASIDE FOR ADJUDICATION, THE PENALTY LEVIED ON SUCH ADDITIONS SHOULD BE DELETED WITH SPECIFIC AUTHORITY TO THE REVENUE T O REINITIATE THE PENALTY PROCEEDINGS U/S 158BFA(2) OF THE ACT, IN CA SE THE ASSESSING OFFICER CONFIRMS THE ADDITIONS SUBSEQUENT TO SET AS IDE PROCEEDINGS ON THE LIMITED ISSUE. NEEDLESS TO MENTIONS THAT THE ASSESSEE IS TO BE PROVIDED A PROPER OPPORTUNITY OF BEING HEARD. MEHMOOD MANSOORI 4 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 . 06.2018. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 29 / 06/2018 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE