KUVAWALLA DRILL EQUIPMENT ,,PUNE vs. INCOME-TAX OFFICER, WARD - 14 (1),, PUNE

2 & 1375/PUN/2019 2. Since the identical facts and common issues are involved in all the above captioned two appeals, we proceed to dispose of the same by this common order.

For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.1374/PUN/2019 for the assessment year 2010-11 are stated herein. ITA No.1374/PUN/2019, A.Y. 2010-11 : 4. Briefly, the facts of the case are that the appellant is a partnership firm. It is engaged in the business of manufacturing in drilling equipments. The return of income for the assessment year 2010-11 was filed on 07.10.2010 declaring total income of Rs.81,67,464/- and no scrutiny assessment was made. Subsequently, on receipt of the information from the Investigation Wing of the Department that the appellant made purchase from Hawala dealers, the Income Tax Officer, HQ- 6(2), Pune (‘the Assessing Officer’) reopened the assessment and completed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (‘the Act’) vide 3 ITA Nos.1374 & 1375/PUN/2019 order dated 27.03.2015 after making addition on account of Hawala purchase. Subsequently, the assessment was annulled by this Tribunal in ITA Nos.2534 & 2535/PUN/2017 for the assessment years 2010-11 and 2011-12 vide order dated 26.10.2021 by holding that the reassessment proceedings were bad in law for the reasons that the re-assessment proceedings were initiated without independent application of mind by the Assessing Officer. Thus, the assessment order came to be annulled by this Tribunal. Therefore, the question of levy of penalty u/s 271(1)(c) does not arise.

In the result, the appeal of the assessee in ITA No.1374/PUN/2019 for A.Y. 2010-11 stands allowed.