Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, JAIPUR BENCH ‘A’ VC JAIPUR
Before: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM
This is an appeal filed by the revenue against the order of ld. CIT (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 21.01.2022 for the assessment year 2012-13. The solitary ground raised by the revenue is as under :-
“ On the facts and the circumstances of the case and in law the ld. CIT (A) has erred in deleting penalty of Rs. 5,56,43,537/- u/s 271(1)(c) of the I.T. Act, 1961.”
The brief facts of the case are that the assessee Rajasthan Cricket Association is registered as Society Trust under Rajasthan Society Trust Registration Act, 1958 vide S.No. 267/86/87 dated 18.02.1987 and also registered under Sport Association’s Registration Accreditation Act, 2005 vide S.No. 020/2005 dated 27.04.2005 with the main object of promotion and development of the game of Cricket in the State of Rajasthan. The assessee society filed its return of income for the Assessment Year 2012-13 declaring total income of Rs. NIL on 30.09.2012 after claiming the exemption U/s 11 & 12 of the Income Tax Act, 1961. The assessment was completed u/s 143(3) of the Income Tax Act 1961 on 27.03.2015 disallowing the benefit exemption under section 11 & 12 against which the assessee filed the appeal before ld. CIT (Appeals) and the matter was pending under first appeal. The Assessing Officer initiated penalty proceedings under section 271(1)(c) of the IT Act, 1961 and imposed penalty of Rs 5,56,43,537/- on 30.09.2015 equivalent to 100 per cent of the tax on the amount of income assessed at Rs. 18,00,76,165/-.
Aggrieved by the penalty order, the assessee filed the appeal before the Ld CIT(A) on 06.01.2016 which has been decided by the Ld CIT(A), NFAC on 21.01.2022 in favour of the assessee by allowing the appeal. The assessee filed the submissions and the related case laws before the Ld CIT(A) which have been incorporated in the order of Ld. CIT(A). In the meanwhile, quantum appeal for the Assessment Year 2012-13 has been decided vide order dated 24.12.2021 in Appeal No. CIT(A)-3,Jaipur/11511/2019-20 (Manual appeal no. 615/15-16) by the Ld CIT(A) in favor of the assessee by deleting the additions made by the AO and allowing the appeal of the assessee. The operating part of the decision of Ld CIT(A), NFAC at paras 7.4.1 , 7.4.2 and 8 of the order are as under :
“7.4.1 On perusal of the penalty order it is seen that the AO has levied penalty equivalent to 100 per cent of the tax amount of Rs 5,56,537/- derived on the assessed income of Rs. 18,00,76,165/- based on the additions made in the assessment order u/s 143(3) dated 27.03.2015. However the appellant has filed an appeal against the additions made in the assessment order. The additions made in the assessment order have already been deleted in the appeal against the assessment order for AY 2012-13 based on the decisions of the Hon’ble ITAT Jaipur and Hon’ble High Court in the case of the appellant itself.”
“7.4.2 Vide appeal order DIN & Order No. ITBA/NFAC/S/250/2021- 22/1038107653(1) dated 24.12.2021, the above additions made in the assessment order for AY 2012-13 dated 27.03.2015 have been deleted and the appeal has been allowed. Since the quantum appeal has been decided in the favor of the appellant, the consequent penalty order u/s 271(1)(c) has no legs to survive. Accordingly, the AO is directed to delete the above penalty u/s 271(1)(c). Ground no. 1 to 3 raised by the appellant in the present appeal is allowed.” “8 In the result, the appeal is allowed.”
Aggrieved by the order of the Ld CIT(A), the revenue has filed the present appeal.
The ld D/R has submitted that the AO has levied the penalty u/s 271(1)(c) when the quantum order for the said assessment year was pending. Now since the quantum order of the ld CIT(A) has been passed in favor of the assessee, and the said order was appealed before the Tribunal in which has also been heard by the Tribunal and the matter may be dealt accordingly.
On the other hand, the ld A/R submitted that the AO has grossly erred in passing the order of the penalty against which the appeal of the assessee has been decided in favor of the assessee by the Ld CIT(A) as per the operative part of the decision mentioned at para 7.4.1, 7.4.2 and 8 of the order, supra. The quantum appeal for the Assessment Year 2012-13 decided by the Ld CIT(A) in favor of the assessee, has been challenged by the department before the Hon’ble Tribunal. The quantum appeal of the department has already been heard by the Tribunal in appeal no. 67/JP/2022. The ld A/R requested to consider the submissions and the decision on the quantum order and submitted that it has no legs to stand and requested to dismiss the appeal of the revenue.
We have heard the rival contentions, perused the material available on record and the orders of the lower authorities, and noted that the quantum appeal of the assessee has been decided by the ld. CIT (A) vide his order dated 21.01.2022 in favour of the assessee by allowing the appeal, decision cited supra. Further, since we have dismissed the appeal of the department against the quantum order in for the Assessment Year 2012-13 vide order of even date, hence the present appeal of the department has no legs to stand and accordingly the appeal of the revenue is dismissed.
In result the appeal of the revenue is dismissed.
Order pronounced in the open Court on 28/06/2022.