SHREE RAMA MULTI-TECH LTD.,AHMEDABAD vs. THE DCIT CIRCLE-4(1)(1), AHMEDABAD

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ITA 1458/AHD/2019Status: DisposedITAT Ahmedabad19 June 2020AY 2004-052 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

Since the quantum appeals were allowed, the penalty orders arising from those assessment proceedings were rendered invalid. Therefore, the penalty proceedings were quashed.

What were the facts?

The assessee's appeals were against penalty orders passed under Section 271(1)(c) for assessment years 2002-03, 2003-04, and 2004-05. The quantum appeals related to these penalty proceedings had already been allowed by a co-ordinate bench.

What were the issues?

Whether penalty under Section 271(1)(c) can sustain when the underlying assessment order has been deleted or modified in appeal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘C’

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Shri S. N. Soparkar, AR
Hearing: 04/06/2020Pronounced: 22/06/2020

PER BENCH: The bunch of appeals filed by the assessee are directed against the common order dated 24.07.2019 passed by the Commissioner of Income Tax (Appeals) - 8, Ahmedabad arising out of the penalty orders all dated 28.03.2016 passed by the DCIT, Circle-4(1)(1) under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as to “the Act”) for the Assessment Years (A.Ys.) 2002-03, 2003-04 & 2004- 05 respectively. Since all the appeals relating to the same assessee and the issues are identical, these are heard analogously and are being disposed of by a common judgment.

2.

At the time of hearing of the instant appeals the Ld. Senior Counsel submitted before us that the quantum appeal being 1342 to 1344/Ahd/2015 in relation to these penalty appeals were already been allowed by and under the common ITA Nos. 1456, 1457 & 1458/Ahd/2019 A.Ys. 2002-03, 2003-04 & 2004-05 2 order dated 25.11.2019 passed by the Co-ordinate Bench. Hence, the penalty orders arising out of those assessment proceedings have no legs to stand upon and are liable to be set-aside.

3.

The Ld. DR, with all his fairness has not raised serious objection to such contention made by the Ld. AR.

4.

Taking into consideration the entire aspects of the matter we find that since the quantum appeals have already been allowed, the penalty proceedings initiated against the assessee culminating into the orders of penalty have lost its force and penalty proceeding is, therefore, liable to be quashed. Hence, the penalty proceedings are hereby quashed.

5.

In the result, assessee’s appeals are allowed.

[Order pronounced in the Court on 22.06.2020]

1.

Sd/- Sd/- (PRADIP KUMAR KEDIA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 22/06/2020 TANMAY, Sr. PS TRUE COPY आदेशक���त�ल�पअ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent. 3. संबं�धतआयकरआयु�त/ Concerned CIT 4. आयकरआयु�त(अपील) / The CIT(A) 5. �वभागीय��त�न�ध, आयकरअपील�यअ�धकरण/ DR, ITAT, 6. गाड�फाईल / Guard file.

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