Sri.O.Abdul Razak, Malappuram V. ACIT, Tirur

ITSSA 2/COCH/2013

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 0056 (ITAT-COCHIN)
• Duration Of Justice: 10 month(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 04-02-2014
• Assessment Year: misc
• Appeal Filed On: 06-05-2013
• Court: TRIBUNAL
• Department Lawyers: K K JOHN
• Assessee Lawyers: M V VENUGOPALCA
• Keywords: Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKARAN, AM I.T.(SS)A. NO. 02/ COCH/2013 BLOCK ASSESSMENT PERIOD : 1989-90 TO 1999-2000 O.ABDUL RAZAK, EMIRATES RESIDENCE, KODINHI P.O., CHEMMAD, MALAPPURAM DISTRICT. [PAN:AACPO 8714P] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1, TIRUR. (ASSESSEE-APPELLANT) (REVENUE-RESPONDENT ) ASSESSEE BY SHRI M.V. VENUGOPAL,CA REVENUE BY SHRI K.K. JOHN, SR. DR DATE OF HEARING 04/02/2014 DATE OF PRONOUNCEMENT 14/03/2014 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 14.3.2013 PASSED BY LD CIT(A), KOZHIKODE AND IT RELATES TO THE BLOCK PERIO D ENDING 1999-2000. 2. THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S 158BFA(2) OF THE ACT, HAVING BEEN CONFIRMED BY LD CIT(A) PARTIALLY, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 3. AT THE TIME OF HEARING, THE LD D.R SUBMITTED T HAT THE ASSESSING OFFICER HAS PASSED THE IMPUGNED PENALTY ORDER ON THE ADDITIONS SUSTAINED B Y THE TRIBUNAL, I.E. THE IMPUGNED PENALTY ORDER WAS AFTER THE RECEIPT OF ORDER PASSED BY THE TRIBUNAL. HOWEVER, THE REVENUE PREFERRED APPEAL BEFORE THE HONBLE HIGH COURT OF K ERALA CHALLENGING THE ORDER PASSED BY THE TRIBUNAL AND THE HONBLE HIGH COURT HAS DECIDED THE ISSUES IN FAVOUR OF REVENUE. THE LD D.R ALSO FURNISHED A COPY OF ORDER DATED 21.12.2 011 PASSED BY THE HONBLE HIGH COURT IN THE HANDS OF THE ASSESSEE REPORTED IN (2012)(207 TA XMAN 193)(KERALA). ACCORDINGLY, THE LD D.R SUBMITTED THAT THE PENALTY ORDER PASSED BY T HE ASSESSING OFFICER NEEDS TO BE REVISED IN ACCORDANCE WITH THE DECISION RENDERED BY HONBLE HIGH COURT. IT(SS)A NO.02/COCH/2013 2 4. ON THE CONTRARY, THE LD A.R SUBMITTED THAT T HE PRESENT APPEAL IS FILED AGAINST THE PENALTY ORDER PASSED BY THE AO. HE FURTHER SUBMITT ED THAT THE PROVISIONS OF SEC. 158BFA DO NOT PROVIDE FOR UPWARD REVISION OF PENALTY TO BR ING IT IN LINE WITH THE UPWARD REVISION OF INCOME CONSEQUENT TO THE ORDER OF HIGH COURT. 5. WE HAVE HEARD RIVAL CONTENTIONS. ADMITTEDLY, TH E IMPUGNED PENALTY ORDER WAS PASSED BY THE ASSESSING OFFICER AFTER THE RECEIPT OF ORDER PASSED BY THE TRIBUNAL. HENCE THE AO HAS IMPOSED PENALTY ON THE ADDITIONS CONFIRMED BY T HE TRIBUNAL. THEREAFTER, THE HONBLE HIGH COURT OF KERALA HAS DECIDED THE APPEAL FILED B Y THE REVENUE CHALLENGING THE ORDER OF THE TRIBUNAL. WE NOTICE THAT THE HIGH COURT HAS DE CIDED THE ISSUES IN FAVOUR OF REVENUE, MEANING THEREBY, THE QUANTUM OF INCOME HAS GOT ENHA NCED BY THE ORDER OF HONBE HIGH COURT. ACCORDINGLY, WE FIND MERIT IN THE CONTENTIO NS OF THE REVENUE THAT THE PENALTY ORDER NEEDS TO BE REVISED IN TERMS OF THE ORDER OF HIGH C OURT. 6. IN VIEW OF THE FOREGOING DISCUSSIONS, WE ARE OF THE VIEW THAT THE ISSUE RELATING TO PENALTY NEEDS TO BE EXAMINED AFRESH AT THE END OF T HE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THE ORDER OF LD CIT(A) AND RESTORE THE MA TTER TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION. BEFORE US, THE LD A.R CONTEND ED THAT THE PROVISIONS OF SEC. 158BFA DO NOT PROVIDE FOR ENHANCEMENT OF PENALTY. SINCE WE H AVE SET ASIDE ALL THE MATTERS RELATING TO THE PENALTY TO THE FILE OF THE AO, THE ASSESSEE IS FREE TO URGE ALL ISSUES, BOTH ON LEGAL POINTS AND ON MERITS, BEFORE HIM. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 14-03-2014 . SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER AC COUNTANT MEMBER PLACE: KOCHI DATED: 14TH MARCH, 2014 GJ IT(SS)A NO.02/COCH/2013 3 COPY TO: 1. O.ABDUL RAZAK, EMIRATES RESIDENCE, KODINHI P.O., CHEMMAD, MALAPPURAM DISTRICT. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE- 1, TIRUR. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS), KOZHIKOD E. 4. THE COMMISSIONER OF INCOME-TAX, KOZHIKODE. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T, COCHIN