Smt. Dolly Jain, Chandigarh V. ACIT, Chandigarh

ITSSA 7/CHANDI/2012

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 0627 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-02-2015
• Assessment Year: misc
• Appeal Filed On: 09-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER IT(SS)A NO. 4/CHD/2012 BLOCK PERIOD 1.04.1988 TO 30.09.1998 M/S S.K. & COMPANY, VS THE ACIT, CIRCLE 2(1), CHANDIGARH CHANDIGARH PAN NO.AADFS3919F IT(SS)A NO. 6/CHD/2012 BLOCK PERIOD 1.4.1988 TO 30.09.1998 M/S CLASSIC CUTLERY (INDIA), VS THE ACIT, CIRCLE 2(1), CHANDIGARH CHANDIGARH PAN NO.AADFC7053R & IT(SS)A NO. 7/CHD/2012 BLOCK PERIOD 1.4.1988 TO 30.09.1998 SMT. DOLLY JAIN, VS THE ACIT, CIRCLE 2(1), CHANDIGARH CHANDIGARH PAN NO.AAUPJ0070D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY JAIN RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 11.02.2015 DATE OF PRONOUNCEMENT : 13.02.2105 ORDER PER T.R.SOOD, A.M. THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAI NST THE ORDER SEPARATE ORDERS DATED 1.2.2012, 30.8.2012 & 29.08.2012 OF CI T(A), CHANDIGARH RESPECTIVELY 2 2. ALL THE APPEALS HAVING IDENTICAL GROUNDS WERE HE ARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. FIRST WE S HALL TAKE UP APPEAL IN IT(SS)A NO. 4/CHD/2012. 3. IN THIS APPEALS THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS:- 1. THAT ORDER PSSASED U/S 250(6) OF INCOME-TAX ACT , 1961 BY THE LD. CIT(A) CHANDIGARH IS AGAINST LAW AND FAC TS ON THE FILE IN AS MUCH AS HE WAS NOT JUSTIFIED TO ARBITRARILY UPHOLD THE LEVY OF PENALTY U/S / 158BFA (2) AMOUNTING TO RS. 28,06,770/- 4. AFTER HEARING BOTH THE PARTIES WE FIND THAT A SE ARCH WAS CONDUCTED IN THE PREMISES OF SHRI CHANDERDEEP JAIN AND SHRI VIPIN KU MAR JAIN. SHRI CHANDERDEEP JAIN AND SHRI VIPIN KUMAR JAIN ARE BROT HERS AND ARE ALSO PARTNERS IN THE FIRM M/S S.K. & COMPANY. CERTAIN INCRIMINATI NG DOCUMENTS ETC. WERE FOUND AND ULTIMATELY VARIOUS ADDITIONS WERE MADE AN D UNDISCLOSED INCOME WAS ASSESSED AT RS. 71,40,008/-. ON THIS INCOME PENAL TY U/S 158BFA(2) WAS ALSO INITIATED. LATER ON A SEPARATE PENALTY ORDER WAS PA SSED THOUGH WHICH PENALTY AMOUNTING TO RS. 28,06,770/- WAS LEVIED ON THE NET UNDISCLOSED INCOME WHICH COME TO RS. 40,67,783/- AFTER GIVING EFFECT TO THE APPEAL ORDER PASSED BY CIT(A). THE ADDITIONS WERE CHALLENGED BEFORE THE TR IBUNAL ALSO AND ULTIMATELY TRIBUNAL QUASHED THE ASSESSMENT IT(SS)A NO. 22/CHD/ 2008 AND 23/CHD/2009 (I.E IN ASSESSEES AS WELL AS REVENUES APPEAL). 5. BEFORE US LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE ASSESSMENT ITSELF HAS BEEN ANNULLED BY THE TRIBUNAL THERE CANN OT BE ANY PENALTY. 6. ON THE OTHER HAND LD. DR SUPPORTED THE IMPUGNED ORDER. 3 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT IN THE QUANTUM PROCEEDINGS THIS ISSUE HAS BEEN ADJUDICATED BY THE TRIBUNAL IN IT(SS)A NO. 22/CHD/2008 AND 23/CHD/2009 VIDE PARA 31 WHICH IS A S UNDER:- 31. IN VIEW OF OUR HOLDING THE ASSESSMENT FRAMED U NDER SECTION158BC READ WITH SECTION158BD OF THE ACT TO B E TIME BARRED BY LIMITATION, WE DO NOT ADJUDICATE THE ISSUES RAIS ED ON MERIT OF THE ADDITIONS BOTH BY THE ASSESSEE AND THE REVENUE, BEC AUSE SAME HAS BECOME OF ACADEMIC NATURE. 8. FROM THE ABOVE IT BECOMES CLEAR THAT ASSESSMENT ITSELF HAS BEEN HELD TO BE TIMEBARRED AND, THEREFORE, THERE CANNOT BE ANY PENA LTY ON SUCH ASSESSMENT. THEREFORE, WE SET ASIDE THE ORDER OF LD. CIT(A) AND DELETE THE PENALTY. 9. IT(SS)NO.6 & 7/CHD./2012 : IN BOTH THESE CASES, THE ISSUES AND FACTS ARE IDENTICAL TO THE ISSUES ADJUDICATED BY US IN IT(SS) A NO. 4/CHD/2012 IN THE ABOVE NOTED PARAS AND FOLLOWING THE SAME IN THIS CA SE ALSO WE DELETE THE PENALTY. 10. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.02.2015 SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 13 TH FEBRUARY,2015 RKK COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR