Income Tax Appellate Tribunal - Jaipur
Ito, Jaipur vs Kheti Lal Sharma Huf, Jaipur on 2 January, 2017
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 885/JP/2016
fu/kZkj.k o"kZ@Assessment Year : 2006-07.
The Income Tax Officer,
Ward 7(2),
Jaipur.
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Vs.
Shri Kheti Lal Sharma HUF,
Village : Sarangpura,
Tehsil: Sanganer, Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAHHK 3191D
vihykFkhZ@Appellant
izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by : Shri Rajendra Singh (Addl. CIT)
fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (CA)
lquokbZ dh rkjh[k@ Date of Hearing : 02.01.2017.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 02/01/2017.
vkns'k@ ORDER
PER SHRI KUL BHARAT, JM.
The appeal by the revenue is directed against the order of ld. CIT (Appeals)-3, Jaipur dated 25.07.2016 pertaining to assessment year 2006-07. The revenue has raised the following grounds of appeal :-
On the facts and circumstances of the case, the CIT (A) has erred in deleting penalty u/s 271(1)(c) imposed by the AO of Rs. 62,10,000/- holding that quantum addition has been deleted by the ITAT Jaipur but the department has not accepted the decision dated 18.03.2016 of the ITAT in this case and appeal has been filed against it before the Hon'ble Rajasthan High court in September, 2016 (CBITA No. 170/2016).
2. The appellant craves for leave to add, alter, amend, withdraw or insert any ground or grounds of appeal before or at the time of hearing of the appeal.
2. Briefly stated the facts are that the assessee is having income from long term capital gain and interest income. In response to notice under section 142(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) the assessee filed its return of income declaring total income of Rs. 2,57,794/- under the head "Income from Other sources" as interest from bank on 27.09.2007. The case of the assessee has been scrutinized u/s 144/147 of the Act. The AO after recording the satisfaction u/s 147 of the Act issued notice under section 148 of the Act on 15.01.2010 for filing the return. In response to notice u/s 148 of the Act, the ld. Counsel for the assessee submitted that the return filed originally be treated as return in response to this notice. While framing the assessment, the AO computed the long term capital gain at Rs. 2,75,09,939/- and initiated penalty proceedings. Subsequently, the AO levied penalty of Rs. 62,10,000/- on the entire additions of Rs. 2,75,09,939/-. The assessee preferred appeal before ld. CIT (A), who after considering the submissions deleted the penalty and allowed the appeal of the assessee.
3. Now the revenue is in appeal before this Tribunal.
4. The ld. D/R supported the order of the A.O. and prayed that order of ld. CIT (A) be set aside.
4.1. At the outset, the ld. Counsel for the assessee supported the order of ld. CIT (A). The ld. Counsel submitted that in quantum proceedings in ITA No. 103/JP/2012 dated 18.03.2016 the issue of quantum addition has been set aside by the Coordinate Bench by allowing the appeal of the assessee. Therefore, the penalty levied on this amount does not survive. The ld. Counsel prayed that the order of ld. CIT (A) deleting the penalty may be confirmed.
4.2. We have heard rival contentions, perused the material available on record and gone through the orders of the authorities below. We find that the Coordinate Bench on the issue of quantum addition, set aside the order of ld. CIT (A) by deleting the addition and allowed the appeal of the assessee. In the light of above facts, the penalty levied does not survive, we, therefore confirm the order of ld. CIT (A) who has rightly deleted the penalty levied by the AO.
5. In the result, appeal of the revenue is dismissed.
Order pronounced in the open court on 02/01/2017. Sd/- Sd/- ¼foØe flag ;kno½ ( dqy Hkkjr) (VIKRAM SINGH YADAV) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 02/01/2017. Das/ vkns'k dh izfrfyfi vxzsf"kr@Copy of the order forwarded to: 1. The Appellant- The Income Tax Officer, Ward 7(2), Jaipur. 2. The Respondent- Shri Kheti Lal Sharma HUF, Jaipur. 3. The CIT, 4. The CIT (A) 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 885/JP/2016) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar 4 ITA No. 885/JP/2016 Shri Kheti Lal Sharma HUF