×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
10-01-2019, SM & SM Resorts, Section 271AAB, 4, Tribunal Indore
This bunch of 16 appeals by four different assessees are directed against order of the CIT(A)-III, Indore dated 7.12.2016 for the assessment years 2007-08 to 2013-14.
All the appeals pertaining to the same group were taken up together and are being disposed of by way of this consolidated order for the sake of convenience and brevity. First we take up ITA No.78/Ind/2017 in the case of SM & SM Resorts N Hotels International Ltd. Vs. DCIT (Central)- 1, Indore. The assessee has raised following grounds of appeals:
1. On the facts and in the circumstances of the case, and, in law, the Hon'ble Commissioner of Income Tax (Appeals)-III, Indore erred in confirming the penalty of Rs.92,700/- levied u/s 271(1)(c) of the Income Tax Act, 1961 by the Assistant Commissioner of Income Tax (Central)-I, Indore.
2. The appellate order being not based on facts, and in law, is illegal and wrong.
3. The appellant company craves leave to add/alter/amend the above Grounds of Appeal, if and when, necessity or occasion arises.
2. Briefly stated facts are that a search & seizure operation was carried out in the business as well as residential premises of the appellant group, Indore including the assessee along with other concerns/business associates on 21.9.2012. Subsequently, a notice u/s 153A of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) was issued. In response thereto, the assessee filed return of income. The A.O. framed assessment u/s 153A r.w.s. 143(3) of the Act vide order dated 24.3.2015. While framing the assessment, the A.O. also initiated penalty proceedings u/s 271(1)(c) of the Act in the case of the assessee for the assessment years 2010-11 & 2011-12 and penalty u/s 271AAB of the Act for the assessment year 2012-13. Subsequently, the A.O. imposed a penalty u/s 271(1)(c) of the Act in respect of appeal under consideration vide order dated 23.9.2015 thereby the assessing officer imposed a penalty of Rs.92,700/- u/s 271(1)(c) of the Act. Against this, the assessee preferred an appeal before the Ld. CIT(A), who after considering the submissions dismissed the appeal. Now the assessee is in further appeal before this Tribunal.
3. Ld. Counsel for the assessee vehemently argued that the penalty is bad in law and is contrary to the judicial pronouncements, more particularly judgement of the