KARANDHAI TAMIL SANGAM,THANJAVUR vs. JCIT THANGAVUR RANGE, THANJAVUR

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ITA 3034/CHNY/2017Status: DisposedITAT Chennai17 June 2021AY 2005-063 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since fresh penalty proceedings were initiated based on the ITAT's directions, the original penalty orders and the appeals against them became infructuous. Therefore, the appeals were dismissed.

What were the facts?

The assessee filed appeals against penalty orders under Section 271A and 271(1)(b) of the Income Tax Act. The ITAT had previously set aside quantum additions and cancelled a penalty, directing fresh adjudication. The Assessing Officer initiated fresh penalty proceedings.

What were the issues?

Whether appeals against original penalty orders survive when fresh penalty proceedings are initiated based on a prior ITAT order. The consequence of fresh penalty proceedings on existing appeals against earlier penalty orders.

Which sections of the Income-tax Act were involved?

Section 271A,Section 271(1)(b)

AI-generated summary — verify with the full judgment below

Before: Shri Duvvuru RL Reddy & Shri S. Jayaraman

Hearing: 14.06.2021Pronounced: 17.06.2021

Karandhai Tamil Sangam, The Joint/Additional Commissioner of No. 1922, Seshaiya Sasthriyar Road, Vs. Income Tax, Karuthattangudi, Thanjavur. Non Corporate Ward 6(5), Chennai. [PAN:AABTK6593K] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri K. Meenakshisundaram, ITP ��थ� की ओर से/Respondent by : Shri Suresh Periasamy, JCIT सुनवाई की तारीख/ Date of hearing : 14.06.2021 घोषणा की तारीख /Date of Pronouncement : 17.06.2021 आदेश /O R D E R PER BENCH: The appeals in to 3038/Chny/2017 filed by the assessee are directed against the common order of the ld. Commissioner of Income Tax (Appeals) 1, Tiruchirapalli, dated 27.09.2017 relevant to the assessment years 2004-05 to 2009-10 challenging the order passed under section 271A of the Income Tax Act, 1961 [“Act” in short]. The assessee has also filed appeals in I.T.A. Nos. 3039 to 3044/Chny/2017 against the common order of the ld. CIT(Appeals) 1, Tiruchirapalli, dated 27.09.2017 relevant to the assessment years 2004-05 to 2009-10 challenging the order passed under section 271(1)(b) of the Act.

2.

When the appeals were taken up for hearing, the ld. Counsel for the assessee has submitted that the appeals of the assessee against quantum addition as well as penalty under section 272(A)(2)(e)of the Act for the assessment years 2004-05 to 2009-10 were subject matter in appeal before the ITAT and the Tribunal has set aside the quantum addition to the file of the Assessing Officer for fresh adjudication as well cancelled the penalty levied under section 272(A)(2)(e) of the Act. It was further submission of the ld. Counsel that the set aside assessments for the above assessment years had already been initiated afresh and fresh show-cause notices under section 271A of the Act as well as 271(1)(b) of the Act have been served on the assessee for initiating penalty proceedings. It was further submission that the original penalty orders under section 271A and 271(1)(b) of the Act passed by the appellate authority may be cancelled as the said penalty orders do not survive any longer since the Assessing Officer has initiated fresh penalty proceedings as per the directions of the Tribunal in to 3024/Chny/2017 dated 07.08.2018.

3.

On the other hand, the ld. DR has submitted that since the Assessing Officer has initiated fresh penalty proceedings and issued show-cause notices under 271A and 271(1)(b) of the Act, the original appellate order passed against penalty orders became infructuous and the accordingly, the appeals filed against the original penalty orders are liable to be dismissed.

4.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. We have also perused the copies of show-cause notices filed by the assessee, which were issued under section 271A and 271(1)(b) of the Act, for initiating fresh penalty proceedings by the Assessing Officer. Under these facts and circumstances, the appeals filed against the original penalty orders are liable to be dismissed as infructuous and accordingly, the above appeals of the assessee are dismissed.

7.

In the result, all the appeals are dismissed. Order pronounced on the 17th June, 2021 in Chennai.

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