Shri. K. Ramaswamy, Mysore V. Assistant Commissioner of Income Tax, Circle-2(1), Mysore

SA 174/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5998 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 30-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: TATA KRISHNAN
• Keywords: Application of stay
• Section: 271(1)(c)

Judgement Text

SP.174 TO 176/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BENGALURU BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER SP NOS.174 TO 176/BANG/2018 (IN ITA NOS.1866 TO 1968/BANG/2018) (ASSESSMENT YEARS : 2008-09, 2010-11 & 2012-1) SHRI. K. RAMASWAMY, NO.2930/1, K-23, NEAR ST. MARYS CONVENT CIRCLE, JLB ROAD, MYSURU 570 004 PAN : ADGPR5117A VS. PETITIONER DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -2(1), MYSURU RESPONDENT PETITIONER BY : SHRI TATA KRISHNAN, ADVOCATE. RESPONDENT BY : DR. P.V.PRADEEP KUMAR, ADDL.CIT(DR) DATE OF HEARING : 15/06/2018 DATE OF PRONOUNCEMENT : 19/06 /2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THESE STAY PETITIONS ARE FILED BY THE ASSESSEE SE EKING STAY OF DEMAND ARISING OUT OF LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME- TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT]. 02. LEARNED COUNSEL FOR THE ASSESSEE HAS STATED THA T THE DEMAND IN QUESTION HAD ARISEN ON ACCOUNT OF LEVY OF PENALTY U /S 271(1)(C) OF PAGE 2 OF 4 THE ACT. IT IS SUBMITTED THAT PENALTY CANNOT BE SUS TAINED IN LIGHT OF LAW LAID DOWN BY THE JURISDICTIONAL HIGH COURT IN T HE CASE OF MANJUNATHA COTTON & GINNING FACTORY (359 ITR 565)(KAR) AND ALSO THAT NECESSARY APPROVAL FROM THE COMMISSIONER, AS REQUIRED UNDER STATUTE, IS NOT OBTAINED. THUS, IT IS PRAYED THAT OUTSTANDING DEMAND MAY BE STAYED. 03. ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESE NTATIVE VEHEMENTLY OPPOSED THE STAY PETITION. 04. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. THE DEMAND IN QUESTION HAD ARISEN ON ACCOU NT OF LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. FROM THE PERUSAL OF THE PENALTY ORDER AS WELL THE ASSESSMENT ORDER, IT IS OBVIOUS T HAT THE AO HAD LEVIED PENALTY AFTER ISSUING SHOW CAUSE NOTICE IN R ESPONSE TO WHICH ASSESSEE FILED EXPLANATION. THEREFORE, THE RATIO L AID DOWN BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF MANJUNATHA COTTON & GINNING FACTORY (SUPRA) IS NOT SQUARELY APPLICABLE. FURTHER IT IS A MATTER WHICH REQUIRES VERIFICATION OF FACTS. THERE FORE, IT CANNOT BE SAID THAT THERE IS A PRIMA FACIE CASE IN FAVOUR OF THE ASSESSEE. HENCE, WE DECLINE TO STAY THE OUTSTANDING DEMAND. HOWEVER, WE DIRECT THE REGISTRY TO POST THE APPEAL FOR HEARING OUT OF TURN ON 03/07/2018. PAGE 3 OF 4 05. IN THE RESULT, THE STAY PETITIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH DAY OF JUNE, 2018. SD/- SD/- (INTURI RAMA RAO) ( LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER BENGALURU DATED : 19.06.2018 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE. PAGE 4 OF 4