Praneeth Kaur Bagga, Hyderabad V. Dy.CIT, Central Circle-1, Hyderabad

MA 59/HYD/2013

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2051 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-07-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 26-02-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P MURALIMOHAN MR SOLGY JO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER M.A.NO.59/HYD/2013 ARISING OUT OF IT(SS)A.NO.18/HYD/2010 ASSESSMENT YEAR 1996-97 TO 2001-02 AND FOR 01.04.2001 TO 03.01.2002 SMT. PARNEETH KAUR BAGGA, HYDERABAD VS. DCIT, CENTRAL CIRCLE-1, HYDERABAD. (APPLICANT) (RESPONDENT) FOR ASSESSEE MR. P. MURALIMOHAN FOR REVENUE MR. SOLGY JOSE T. KOTTARAM DATE OF HEARING 18.07.2014 DATE OF PRONOUNCEMENT 25.07.2014 ORDER PER SMT. ASHA VIJAYARAGHAVAN, J.M. BY THIS M.A. ASSESSEE SEEKS FOR RECTIFICATION OF THE ORDER OF THE TRIBUNAL DATED 03.08.2012 IN SO FAR AS IT RELATES TO THE APPEAL OF THE ASSESSEE, BEING I.T.(SS)A.NO.18/H YD/2010 FOR THE BLOCK PERIOD COMPRISING OF A.YS. 1996-97 TO 200 1-02 AND FROM 01.04.2001 TO 03.01.2002. THE ASSESSEE IN HIS MISCELLANEOUS PETITION SUBMITS AS UNDER : THE ASSESSEE PARNEET KAUR BAGGA FILED HER BLOCK PE RIOD RETURN OF INCOME UNDER SECTION 158BC OF THE ACT ON 28.02.2005 DECLARING A TOTAL INCOME OF RS. NIL. THE HONBLE ITAT, BENCH-B HAS PASSED THE ORDER ON 03.08.2012 DISMISSING THE ASSESSEE APPEAL VIDE ITA.NO.18/HYD/2010. 2 MA.NO.59/HYD/2013 IN IT(SS)A.NO.18/HYD/2010 SMT. PRANEET KAUR BAGGA, HYDERABAD WHILE PASSING THE ORDER, THE HONBLE ITAT HAS CONFI RMED THE ORDER OF CIT(A) IN LEVY OF PENALTY U/S.158BFA(2 ) AMOUNTING TO RS.4,50,000/- WHICH IS BASED ON WRONG FACTS. THE ASSESSEE HAS SOUGHT THE DELETION OF PENA LTY AS THE ORIGINAL ADDITION ON ACCOUNT OF UNDISCLOSED INVESTMENT IN JEWELLERY AMOUNTING TO RS.7,41,015/- ITSELF WAS DELETED BY HONBLE ITAT, HYDERABAD, BENCH A V IDE ITS ORDER DATED 12.11.2010 FOR ITA.23/HYD/2008 (COP Y ENCLOSED FOR KIND CONSIDERATION). THEREFORE, PENALT Y ON THE SAME CANNOT BE LEVIED. HOWEVER, THE HONBLE ITA T IN PARA 120 OF ITS ORDER HAVE WRONGLY MENTIONED THAT T HE LEVY OF PENALTY IS JUSTIFIED SAYING THAT THE ASSESS EE HAS NO CHANCE OF GETTING RELIEF IN ITS APPEAL AGAINST T HE ADDITION MADE AS UNDISCLOSED INVESTMENT IN JEWELLER Y FROM ITAT AND THEREFORE PENALTY U/S.158BFA(2) HAS T O BE LEVIED WHICH IS NOT TRUE AND CORRECT. 2. WE HAVE PERUSED THE ORDERS. WE FIND THAT A MISTAKE HAS CREPT IN THE ORDER IN IT(SS)A.NO.18/HYD /2010 DATED 03.08.2012 AT PAGE NOS. 59, 60 AND 61 VIDE PA RA NOS. 118, 119, 120, 121 AND 122. THE TRIBUNAL HAS DISCUS SED AND FINALLY CONFIRMED THE LEVY OF PENALTY UNDER SECTION 158BFA(2) AND DISMISSED THE APPEAL OF THE ASSESSEE NAMELY PAR NEET KAUR BAGGA. 3. HOWEVER, AS POINTED OUT BY THE APPLICANT IN IT(SS)A.NO.23/HYD/2008 IN THE APPEAL OF THE ASSESSE E FOR THE BLOCK PERIOD 1996-97 TO 2001-02 THE HONBLE TRIBUNA L A BENCH HAS ALLOWED THE ASSESSEES QUANTUM APPEAL. 4. HENCE, WE FIND THAT THE TRIBUNAL WHILE DECIDING THE ISSUE OF PENALTY IN IT(SS)A.NO.18/HYD/2010 DATE D 03.08.2012 HAS INADVERTENTLY OMITTED TO TAKE COGNIZ ANCE OF THE FACT THAT THE QUANTUM APPEAL HAS BEEN ALLOWED IN IT(SS)A.NO.23/HYD/2008. IN THESE CIRCUMSTANCES, PAR AGRAPH 121 AND 122 ARE SUBSTITUTED AS FOLLOWS : 121. WE HAVE HEARD BOTH THE PARTIES AND PERUSED TH E MATERIAL ON RECORD. WE FIND THAT IN THE QUANTUM 3 MA.NO.59/HYD/2013 IN IT(SS)A.NO.18/HYD/2010 SMT. PRANEET KAUR BAGGA, HYDERABAD APPEAL THE HONBLE TRIBUNAL HAS DELETED THE ADDITION OF RS.7,41,015/- AND ALLOWED ASSESSEES APPEAL I.E., IT(SS)A.NO.23/HYD/2008. THIS PENALTY APPEAL ARISING CONSEQUENT TO THE QUANTUM ADDITION IS ALSO TO BE ALLOWED IN FAVOUR OF THE ASSESSEE AND HENCE, PENALTY IS TO BE DELETED AS IT HAS NO LEGS TO STAND SINCE THE ADDITION OF RS.7,41,015/- IN THE QUANTUM APPEAL HAS BEEN DELETED. 122. IN THE RESULT, IT(SS)A.NO.18/HYD/2010 OF THE ASSESSEE IS ALLOWED. 5. TO THIS EXTENT, OUR CONSOLIDATED ORDER DATED 03.08.2012 IN IT(SS)A.NO.18/HYD/2010 IS MODIFIED. 6. IN THE RESULT, M.A. OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.07.2014. SD/- SD/- (B. RAMAKOTAIAH) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 25 TH JULY, 2014 VBP/- COPY TO 1. SMT. PARNEET KAUR BAGGA, PLOT NO.400, ROAD NO.14, BANJARA HILLS, HYDERABAD C/O. P. MURALI & CO., C.A. 6-3- 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82. 2. DCIT, CENTRAL CIRCLE-1, HYDERABAD 3. CIT(A)-IV, HYDERABAD 4. CIT-III, HYDERABAD 7. D.R. B BENCH, ITAT, HYDERABAD.