Samuben K. Desai L/h. of late Karamsibhai G. Desai, Ahmedabad V. The Dy.CIT, Circle-6, Ahmedabad

ITSSA 53/AHD/2016

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1819 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-04-2016
• Assessment Year: misc
• Appeal Filed On: 02-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S UNIL TLATI
• Section: 143(3)

Judgement Text

IT (SS) A NO . 53 / AHD/ 20 1 6 BLOCK PERIOD: 01.04.1987 TO 31.03.1997 & 01.04.1997 TO 28.08.1997 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHRI S.S. GODARA , JUDICIAL MEMBER IT (SS) A NO. 53 / AHD /201 6 BLOCK PERIOD: 01.04.1987 TO 31.03.199 7 & 01.04.1997 TO 28.08.1997 LATE KARA MSIBHAI G. DE S AI , VS. DY. COMMISSIONER OF INCOME TAX L/ H . SAMUBEN K. DESAI, CIRCLE 6, AHMEDABAD. 7 - 9/21, NAVJIVAN SOCIETY, NEAR H.B. KAPADIYA SCHOOL, GURUKUL, MEMNAGAR, AHMEDABAD 380 052. [PAN A AWPD 3235 C ] (APPELLANT ) (RESPONDENT S ) A PPELLANT BY : SHRI S UNIL TLATI, A. R. RE SPONDENT BY : S HRI R.K. GUPTA , SR. D.R. DATE OF HEARING : 08.04 . 20 16 DATE OF PRONOUNCEMENT : 22 .04.2016 O R D E R PER S.S. G ODARA , J.M. THE APPELLANT SMT. SAMUBEN K. DESAI, LEGAL REPRESENTATIVE OF THE DECEASED ASSESSEE KARAMSIBHAI G. DESAI, HAS FILED THE INSTANT APPEAL FOR BLOCK PERIOD 01.04.1987 TO 31.03.1997 & 01.04.1997 TO 28.08.1997 AGAINST ORDER OF THE CIT(A) - 3 , AHMEDABAD DATED 10 TH NOVEMBER, 2015 PASSED IN CASE NO.CIT(A) - 3/ITO.WD.3(3)(5)/629/2014 - 15 IN PROCEEDINGS UNDER SECTION 158BFA(2) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE APPELLANT S SOLE SUBSTANTIVE GROUND CHALLENGES THE CIT(A) S ORDER PARTLY CONFIRM ING SECTION 158BFA(2) PENALTY OF RS.8,78,820/ - TO RS.1,72,181/ - ARISING FROM ESTIMATION OF INCOME AT THE RATE OF 2% ON THE AMOUNT OF LAND BUSINESS TURNOVER CARRIED OUT IN THE CAPACITY OF A BROKER. IT (SS) A NO . 53 / AHD/ 20 1 6 BLOCK PERIOD: 01.04.1987 TO 31.03.1997 & 01.04.1997 TO 28.08.1997 PAGE 2 OF 2 3. WE NOTICE AT THE OUTSET THAT THE ORIGINAL ASSESSEE EXP IRED ON 02.02.2014 I.E. WELL BEFORE PASSING OF THE IMPUGNED PENALTY ORDER DATED 27.08.2014. IT TRANSPIRES THAT THE ASSESSING OFFICER HAD FRAMED CONSEQUENTIAL ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 158BC AND 254 OF THE ACT ON 21.02.2014. THE AS SESSEE S DEMISE PRECEDES EVEN FINALISATION OF THE QUANTUM ASSESSMENT IN OTHER WORDS. WE QUOTE H ON BLE JURISDICTIONAL H IGH C OURT S DECISION IN (2009) 313 ITR 192 (GUJ) ACIT VS. LATE SHRIMANT F.P. GA E KWA D HOLDING THAT A PENALTY WHERE AN ASSESSEE EXPIRES BEF ORE PASSING OF THE PENALTY ORDER IS A NULLITY AND DELETE THE IMPUGNED PENAL ACTION UNDER CHALLENGE ON THIS SCORE ALONE. THE REVENUE S ARGUMENT SUPPORTING THE PENALTY IN QUESTION STANDS REJECTED BECAUSE OF THE ABOVE SETTLED LEGAL POSITION . 4. THE APPELLAN T SUCCEEDS IN HER INSTANT APPEAL. PRONOUNCED IN THE OPEN COURT TODAY ON TH E 22 ND DAY OF APRIL , 201 6 . SD/ - SD/ - PRAMOD KUMAR S .S. GODARA (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, THE 22 ND DAY O F APRIL , 2016 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABA D BENCHES, AHMEDABAD