2016 (2) TMI 1373

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n and untenable in law. 2. That the penalty order is barred by limitation and is liable to cancelled. 3. That no cause of action arose to levy penalty as the assessment order, which was the foundation of the penalty proceedings was not in existence at the time when such penalty order was passed. 4. That the order passed u/s 263 of the Income Tax Act, 1961 giving rise to assessment order dated 28.12.2011 was set aside by Hon'ble ITAT Lucknow vide order dated 18.01.2012 making the assessment order dated 28.12.2011 ceased to exist in the eyes of law. 5. That the appellant did not contravene the provisions of section 269SS of the Income Tax Act, 1961 rendering the penalty order erroneous and unwarranted. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the case of Baldev Singh vs. Addl. CIT in I.T.A. No.1125 & 1126/Chd/2011 dated 28/02/2012. He submitted a copy of this Tribunal order. 4. Learned D. R. of the Revenue supported the orders of the authorities below. 5. We have considered the rival submissions. We find that the only issue in dispute in the present case is regarding imposition of penalty by the Assessing Officer u/s 271D of the Act. The case of the assessee is that the original assessment order was passed by the Assessing Officer u/s 143(3) on 08/10/2009 and thereafter, learned CIT passed order u/s 263 of the Act as per which learned CIT set aside the said assessment order dated 08/10/2009 and directed the Assessing Officer to re do the assessment. Subsequently, the orde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ile completing the assessment relating to assessment year 2007-08 and therefore, there is no merit in the said initiation of penalty proceedings u/s 271D and 271E of the Act relating to assessment year 2005-06. The Tribunal has referred to a judgment of Hon'ble Punjab & Haryana High Court rendered in the case of CIT vs. Manohar Lal Thakral in I.T.A. No.812 of 2010 dated 14/01/2011. In this case, the question before Hon'ble High Court was as to whether the initiation of proceedings u/.s 271E were legal or illegal as no proceedings were pending before the Assessing Officer and Hon'ble High Court upheld the finding recorded by the Tribunal as per which it was held by the Tribunal that the grievance of the assessee is correct becaus....