2014 (5) TMI 848 - AT - Income Tax

Concealment of income - Penalty u/s 271(1)(c) of the Act - CIT(A) deleted the penalty on the ground that, original assessment order dated 31.12.2008 u/s 143(3) r.w.s. 153A and u/s 143(3) r.w.s. 250 dated 25.6.2010 has been annulled and treated as infructuous Held that - As decided in assessee s own case for the earlier assessment year, it has been held that the AO s orders giving effect to the then CIT (A) s order are not maintainable, the quantum appeals based on the original assessment orders have been knocked down - CIT (A) was justified in coming to a conclusion that the appeals preferred by the assessee against the orders of the AO giving effect to the then CIT (A) s order were not maintainable - CIT (A) was also justified in treating the assessees appeals as infructuous against the penalty orders passed by the AO u/s 271(1)(c) of the Act which emanated from the original assessment orders Decided against Revenue.

Summary

Issues:
- Appeal against consolidated orders of CIT (A)-VI, Bangalore for multiple individuals and assessment years.
- Validity of assessments in connection with joint warrant issue.
- Confirmation of penalties under section 271(1)(c) of the Act.

Analysis:

Issue 1: Appeal against CIT (A)-VI Orders
The appeals by the Revenue were directed against the consolidated orders of the CIT (A)-VI, Bangalore for various individuals for the assessment years 2004-05, 2005-06, and 2006-07. The Tribunal considered twelve appeals together due to identical issues and disposal convenience.

Issue 2: Validity of Assessments and Joint Warrant
The search and seizure operation in the premises led to assessments under dispute. The original assessment orders were annulled by the ITAT due to the issuance of a joint warrant, rendering subsequent assessment orders void. The CIT (A) treated the appeals as infructuous based on this annulment, supported by the judgment of the jurisdictional High Court.

Issue 3: Confirmation of Penalties under Section 271(1)(c)
Penalties under section 271(1)(c) were levied based on the annulled assessment orders. The CIT (A) annulled the penalties as well, considering the assessments void. The Revenue challenged this decision, arguing that the annulment was solely based on the joint warrant issue and not on the merit of additions made in the assessments.

The Tribunal upheld the CIT (A)'s decision, noting that the annulled assessments made the penalties infructuous. The Revenue's appeals were treated as infructuous pending the outcome of appeals filed before the jurisdictional High Court. The Tribunal concluded that the Department's appeals were non-maintainable and infructuous, pending further judicial decisions.

In conclusion, the Revenue's appeals in ITA Nos.611 to 622 were treated as infructuous, and the Tribunal pronounced the order on 30th April 2014.