ASSISTANT COMMISSIONER OF INCOME TAX vs. SUBHASH SHANKAR PAKALE, RATNAGIRI

The appeal of Revenue is time barred by 122 days. The Revenue has filed application seeking condonation of delay in filing of present appeal. After perusal of application we are satisfied that the delay in filing of appeal is not intentional or willful but has occurred due to bonafide reasons mentioned in the application. Accordingly, the delay of 122 days in filing of appeal is condoned and the appeal is admitted to be heard and disposed of on merits.

Shri S.N. Puranik appearing on behalf of the assessee submitted at the outset that the appeal of Revenue is liable to be dismissed as the Tribunal has deleted the addition in appeal filed by the assessee in ITA No. 641/PN/2006 for Block Period 1998-99 to 2004-05 decided on 13-05- 2016. The ld. AR pointed that the penalty u/s. 158BFA(2) has been levied in respect of undisclosed income of Rs.37,19,502/-. The assessee challenged the validity of assessment proceedings in the block assessment on the ground of limitation. The Tribunal vide order dated 13-05-2016 allowed the appeal of assessee holding the assessment order framed u/s. 158BC being barred by limitation.

Shri Subhash Chandra representing the Department fairly admitted that the Tribunal has struck down the validity of block assessment proceedings in the assessee’s case.

Both sides heard. Orders of the authorities below perused. The Revenue in appeal has assailed the order of Commissioner of Income Tax (Appeals) in deleting the penalty. A perusal of impugned order shows that the First Appellate Authority has deleted the penalty by placing reliance on the decision of Tribunal in ITA No. 641/PN/2006 (supra). Since, the substratum for levy of penalty has eroded, the penalty proceedings would not survive. We do not find any infirmity in the impugned order. Accordingly, the same is upheld and the appeal of Revenue is dismissed.

In the result, the appeal by the Revenue is dismissed.

The assessee has filed cross objections in the appeal filed by the Revenue. The cross objections has been filed with the delay of 7 days. The assessee has filed an affidavit citing reasons for delay in filing of cross objections. After examining the same, we are satisfied that the assessee has been able to show reasonable cause for delay in filing of cross objections. The delay of 7 days in filing of cross objections is condoned and the same is admitted to be heard and disposed of on merits.

Since, the appeal of Revenue has been dismissed the cross objections does not survive. Accordingly, the same are dismissed as infructuous.

To sum up, the appeal of Revenue and Cross Objections by the assessee are dismissed.