Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR
आदेश/O R D E R
PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the Assessee against the order of the CIT(A)-6, Ahmedabad (‘CIT(A)’ in short), dated 28.02.2017 arising in the penalty order dated 23.02.2016 passed by the Assessing Officer (AO) under S.
ITA No. 1036/Ahd/17 [Deepak M. Maliwal vs.DC IT] A.Y. 2009-10 - 2 -
271(1)(c) of the Income Tax Act, 1961 (the Act) concerning AY 2009-10.
The grounds of appeal raised by the assessee read as under:
“1. The Ld. CIT (A) erred on facts and in law in confirming action of Assessing Officer levying penalty of Rs. 9,01,368/- without appreciating the fact that there was no initiation of penalty proceedings in the assessment order. 2. The Ld. CIT (A) erred on facts and in law in confirming action of Assessing Officer in issuing notice u/s 271(1)(c) r.w.s. 274 even though there was no initiation of penalty proceedings in the assessment order. 3. The Ld. CIT(A) erred on facts and in law in confirming action of Assessing Officer even though the notices issued u/s 271(1)(c) r.w.s. 274 were not in accordance with the provisions of the Act in as much as printed notice was issued in mechanical manner. 4. The Ld. CIT(A) erred on facts and in law in confirming action of Assessing Officer in levying penalty u/s 271(1)(c) on disallowance of interest of Rs. 28,33,624/- for furnishing of inaccurate particulars of income and concealment of income.”
When the matter was called for hearing, the learned AR for the assessee submitted that the quantum additions/disallowances giving rise to the imposition of penalty in appeal has been set aside by the co-ordinate bench of Tribunal in ITA No. 1363/Ahd/2014, order dated 07.07.2017 in the quantum proceedings to the file of the CIT(A).
In view of the fact that the quantum additions/disallowances itself has been set aside having regard to the appellate order of the ITAT in quantum proceedings, the very basis for imposition of penalty under s. 271(1)(c) does not survive at present. Therefore,
ITA No. 1036/Ahd/17 [Deepak M. Maliwal vs.DC IT] A.Y. 2009-10 - 3 -
the action of the CIT(A) towards sustaining penalty is set aside and restored back to the file of CIT(A) for fresh adjudication in the light of quantum appeal.
In the result, the appeal of the Assessee is allowed for statistical purposes.
This Order pronounced in Open Court on 29/01/2019
Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 29/01/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।