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2020 (1) TMI 1020 - AT - Income TaxRectification u/s 254 - initiation of levying penalty u/s 271(1)(c) instead of 271AAA - HELD THAT - It is pertinent to note that the Hon ble Delhi High Court 2019 (10) TMI 1248 - DELHI HIGH COURT has admitted the appeal filed by the Revenue, on the same issue contested in the present Misc. Application filed by the Revenue. Therefore, the Misc. Application does not survive. Besides this reason, the Revenue is also seeking review of the order 2019 (4) TMI 1029 - ITAT DELHI which is beyond the scope of Section 254 of Income Tax Act, 1961. There is no mistake apparent from the record.
Issues:
1. Applicability of penalty under section 271AAA of the Income Tax Act for A.Y. 2010-11. 2. Multiplicity of proceedings due to an appeal filed before the Hon'ble Delhi High Court. 3. Review of the order dated 16.04.2019 beyond the scope of Section 254 of the Income Tax Act. Analysis: 1. Applicability of penalty under section 271AAA of the Income Tax Act for A.Y. 2010-11: The issue revolved around the applicability of penalty under section 271AAA of the Income Tax Act for the assessment year 2010-11. The Ld. DR contended that since the assessee had already filed the original return under section 139(1) before the search date, A.Y. 2010-11 did not qualify as a specified year under section 271AAA. Therefore, the Ld. DR argued that penalty under section 271(1)(c) of the Act should be levied instead. It was emphasized that the initiation of penalty under section 271(1)(c) was the correct course of action by the Revenue. The Ld. AR, on the other hand, did not agree with this stance, highlighting that the Revenue had already filed an appeal before the Hon'ble Delhi High Court, making the Miscellaneous Application redundant. 2. Multiplicity of proceedings due to an appeal filed before the Hon'ble Delhi High Court: The Ld. AR brought to light that the Revenue had filed an appeal before the Hon'ble Delhi High Court, which was admitted on a similar issue as raised in the present Miscellaneous Application. This led to the argument that the Miscellaneous Application had become infructuous due to the existence of parallel proceedings. It was contended that the filing of the Miscellaneous Application was unnecessary given the pendency of the appeal before the High Court, suggesting that the application should be dismissed on these grounds. 3. Review of the order dated 16.04.2019 beyond the scope of Section 254 of the Income Tax Act: The Tribunal, after hearing both parties and examining the relevant materials on record, concluded that the Miscellaneous Application filed by the Revenue was not sustainable. The Tribunal noted that the Hon'ble Delhi High Court had already admitted the Revenue's appeal on the same issue, rendering the Miscellaneous Application redundant. Additionally, the Tribunal pointed out that the Revenue's attempt to seek a review of the order dated 16.04.2019 was beyond the purview of Section 254 of the Income Tax Act, as there was no apparent mistake in the record. Consequently, the Tribunal dismissed the Miscellaneous Application, affirming that it did not survive and was not maintainable. In conclusion, the Tribunal dismissed the Miscellaneous Application filed by the Revenue, citing the pendency of the appeal before the Hon'ble Delhi High Court and the lack of grounds for review under Section 254 of the Income Tax Act as primary reasons for the dismissal.
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