Assistant Commissioner Of Income Tax, Circle- 7(1)(1), Bangalore V. M/s. Prathibha Jewellery House, Bangalore

MA 8/BANG/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0930 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 29-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V SRINIVASAN
• Keywords: Tax effect
• Section: 271(1)(c); 13

Judgement Text

MPNOS.8 & 9/BANG/2021 M/S. PRATIBHA JEWELLERY HOUSE, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL ABENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P. NOS.8 & 9/BANG/2021 (ARISING OUT OF ITA NOS.2398 & 2400/BANG/2019 ASSESSMENT YEARS: 2006-07 & 2008-09 DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 7(1)(1) BANGALORE VS. M/S. PRATHIBHA JEWELLERY HOUSE 1/1, RAJA RAM MOHAN ROY ROAD RICHMOND CIRCLE BANGALORE 560 025 PAN NO.AABFP1771G APPELLANT RESPONDENT APPELLANT BY : SHRI KANNAN NARAYANAN, D.R. RESPONDENT BY : SHRI V. SRINIVASAN, A.R. DATE OF HEARING : 02.07.2021 DATE OF PRONOUNCEMENT : 13.07.2021 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THESE MISCELLANEOUS APPLICATI ONS AGAINST THE ORDER DATED 26.6.2020 PASSED IN ITA NOS .2398 & 2400/BANG/2019 RELATING TO ASSESSMENT YEARS 2006-07 & 2008-09 RESPECTIVELY. 2. THE LD. D.R. SUBMITTED THAT THE TRIBUNAL HAS PAS SED A COMMON ORDER DATED 26.6.2020 IN ITA NOS.2397 TO 2403/BANG/2019 RELATING TO ASSESSMENT YEARS 2005-06 TO 2011-12. ALL THESE APPEALS WERE RELATED TO PENALTY LEVIED U/ S 271(1)(C) OF THE MP NOS.8 & 9/BANG/2021 M/S. PRATIBHA JEWELLERY HOUSE, BANGALORE PAGE 2 OF 4 INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT]. THE LD. CIT(A) HAD DELETED THE PENALTY ON THE GROUND THAT THE ADDITIONS, ON WH ICH THE PENALTIES WERE LEVIED, HAVE SINCE BEEN DELETED BY T HE ITAT. ACCORDINGLY, THE TRIBUNAL ALSO TOOK THE VIEW THAT T HERE IS NO INFIRMITY IN THE ORDERS PASSED BY LD. CIT(A) AND AC CORDINGLY DISMISSED ALL THE APPEALS FILED BY THE REVENUE. 3. THE LD. D.R. SUBMITTED THAT THE REVENUE HAS FILE D FURTHER APPEALS BEFORE HONBLE HIGH COURT OF KARNATAKA FOR ALL THE YEARS AGAINST QUANTUM ORDERS. THE REVENUE HAS ALSO FILED APPEALS CHALLENGING THE IMPUGNED ORDERS OF THE TRIBUNAL CON FIRMING THE DELETION OF PENALTY EXCEPT FOR ASSESSMENT YEARS 200 6-07 & 2008-09. THE LD. D.R. SUBMITTED THAT THE REVENUE DID NOT FIL E APPEALS FOR THE ABOVE SAID TWO YEARS IN VIEW OF THE LOW TAX EFFECT INVOLVED IN THESE TWO ASSESSMENT YEARS DULY FOLLOWING THE BOARD INSTR UCTION NO.17/2019. THE LD. D.R. SUBMITTED THAT, IF THE HO NBLE HIGH COURT DECIDES THE QUANTUM APPEALS FILED FOR AY 2006 -07 & 2008-09 IN FAVOUR OF THE REVENUE, THE ORDERS OF THE TRIBUNA L PASSED FOR ASSESSMENT YEARS 2006-07 & 2008-09 DELETING THE PEN ALTY IS LIABLE TO BE REVIVED. ACCORDINGLY, THE PRESENT MISCELLANE OUS APPLICATIONS HAVE BEEN FILED WITH THE PRAYER THAT THE ORDERS OF THE TRIBUNAL PASSED IN THE PENALTY APPEALS RELATING TO AY 2006-0 7 AND 2008-09 MAY BE ALLOWED TO BE REVIVED. 4. THE LD. A.R. SUBMITTED THAT THE TRIBUNAL HAS PAS SED THE ORDER ON THE BASIS OF FACTS PREVAILING ON THAT DATE . HE SUBMITTED THAT, IT IS A FACT THAT THE QUANTUM ADDITIONS HAD B EEN DELETED BY THE TRIBUNAL WHEN THE ORDERS IN RESPECT OF PENALTY APPE ALS WERE PASSED BY THE TRIBUNAL. ACCORDINGLY, THE LD. A.R. SUBMITTE D THAT THE ORDERS PASSED BY TRIBUNAL FOR ASSESSMENT YEAR 2006-07 & 20 08-09 DO NOT SUFFER FROM ANY MISTAKE APPARENT FROM THE RECORD AN D HENCE, THE PRAYER OF THE REVENUE SHOULD BE DISMISSED. MP NOS.8 & 9/BANG/2021 M/S. PRATIBHA JEWELLERY HOUSE, BANGALORE PAGE 3 OF 4 5. HAVING CONSIDERED THE FACTS WHICH ARE NARRATED A BOVE THROUGH THE ARGUMENTS OF THE COUNSEL, WE DO NOT FIN D ANY MERIT IN THE PETITIONS FILED BY THE REVENUE. FOR THE SAKE O F CONVENIENCE, WHICH EXTRACT BELOW THE PETITION FILED BY THE REVEN UE FOR BOTH THE YEARS, WHICH READ AS UNDER IN BOTH THE YEARS:- THE HONBLE ITAT, BENGALURU, VIDE ITS ORDER IN ITA NO.2393 TO 2403/2019 DATED 26.6.2020 HAS DISMISSED THE APPEALS OF THE REVENUE IN THE CASE OF M/S. PRATHIBHA JEWELLERY HOUSE AND THE DEPA RTMENT HAS AUTHORIZED FILING OF FURTHER APPEALS BEFORE THE HON BLE HIGH COURT OF KARNATAKA EXCEPT FOR THE ASST. YEARS 2006-07 & 2008 -09 IN VIEW OF LOW TAX EFFECT INVOLVED IN THESE ASSESSMENT YEARS BASED ON THE BOARDS INSTRN. NO.17/2019. IN THIS REGARD, IT IS PRAYED THAT IF T HE HONBLE HIGH COURT DECIDES THE ORIGINAL APPEAL IN FAVOUR OF REVENUE, T HE ORDERS OF THE TRIBUNAL FOR THE ASST. YEARS 2006-07 & 2008-09 MAY BE ALLOWE D TO BE REVIVED. 6. AS SUBMITTED BY LD. A.R., THE TRIBUNAL HAS PASSE D THE ORDER ON THE BASIS OF FACTS AVAILABLE ON THAT DATE. THE SAID ORDER CANNOT BE INTERFERED SOLELY ON THE REASON THAT THE REVENUE HAS FILED THE APPEALS BEFORE HONBLE HIGH COURT OF KARNATAKA IN Q UANTUM APPEALS, WHOSE OUTCOME IS NOT KNOWN ON THIS DATE. THE REVENUE HAS TO TAKE APPROPRIATE ACTION IN ACCORDANCE WITH T HE LAW, IF THE APPEALS FILED BY THEM AGAINST QUANTUM APPEALS ARE D ECIDED IN THEIR FAVOUR BY THE HIGH COURT. HENCE, WE DO NOT FIND AN Y MERIT IN THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE. 7. IN THE RESULT, BOTH THE MISCELLANEOUS APPLICATIO NS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH JUL, 2021 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 13 TH JUL, 2021. VG/SPS MP NOS.8 & 9/BANG/2021 M/S. PRATIBHA JEWELLERY HOUSE, BANGALORE PAGE 4 OF 4 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.