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TMI Blog2018 (2) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the facts and the issues involved in these appeals are common, these were heard together and are being disposed of by this consolidated order. In all these cases, in the grounds of appeal, the assessees have raised identical legal grounds as well as grounds on merits. 3. First we take up the appeal of the assessee in ITA No.694/LKW/2016 wherein ground No.2 relates to legal issue. The contention of the assessee is that the penalty order passed under section 158BFA(2) of the Act is barred by limitation. 4. The brief facts with regard to the legal issue are that the original proceedings under section 158BC of the Act were concluded by the Assessing Officer on 30/3/2001, against which assessee's appeal was decided by the ld. CIT(A) on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en passed on 28/2/2014. The ld. CIT(A) on this issue has held that levy of penalty by the Assessing Officer was done within the period of limitation prescribed under the law and the contentions of the Assessing Officer was upheld. 5. We have perused the case record, heard the rival contentions and we find that the mute question to be decided is which order - whether the order of ITAT or that of the ld. CIT(A) in the second inning is relevant for the purpose of calculating the period of limitation for levying the penalty under section 158BFA(2) of the Act. Undisputedly, the law itself permits the Assessing Officer to keep levy of penalty in abeyance till appeal proceedings are decided by the ld. CIT(A) or by the ITAT. The undisputed fact is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the law. Thus, the legal ground (grounds No.2) taken by the assessee is dismissed. 6. Grounds No.1, 3, 4, 5 and 6 are on merit and they relate to the grievance of the assessee against imposition of penalty under section 158BFA(2) of the Act. 7. The brief facts regarding these grounds are that a search and seizure operations under section 131(1) of the Act were carried out in the Sub-post Office, Kidwai Nagar, Kanpur on 26/3/1999 and Kisan Vikash Patra (KVPs) having face value of Rs. 12,71,000/- (including KVPs of Rs. 5,61,000/- already encashed earlier) were found in the Sub-post Office, Kidwai Nagar, Kanpur. These KVPs were found in the name of family members of the assessee in joint names with different permutations and combinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that assessee could not produce any detail and evidence in support of his claim. Penalty notice under section 158BFA dated 30.12.2008 was issued fixing the date of hearing. On the schedule date i.e. 12.2.2014, which was the last opportunity to the assessee, the assessee has furnished his written submission and opposed the penalty proceedings under section 158BFA(2) of the Act. The submissions of the assessee included that ITAT, Lucknow Bench has given substantial relief and this shows genuineness of ground and all other additions on account of technicalities involved in filing of income tax return of block assessment period and the Tribunal never rejected the submission of the assessee that assessee has filed his return and details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the judicial pronouncements placed before us. In the cases of Palakkaran Bankers & Chit Funds vs. DCIT in IT(SS)A No.03/Coch/2014 decided by the Cochin Bench of ITAT; Hari Om Verma vs. DCIT in ITA No.768/LKW/2016 decided by the Lucknow Bench of ITAT and CIT vs. Satyendra Kumar Dosi in ITA No.195 of 2008 decided by Hon'ble Bomaby High Court, the proposition of law is that penalty imposed under the provisions of section 158BFA(2) is not automatic. The Hon'ble Bombay High Court in the case of CIT Vs. Dodsal Ltd., 218 CTR 430 (Bombay) has held that section 158BFA(2) of the Act provides discretion to the Assessing Officer for levy of penalty and what is to be examined is whether there exists appropriate reason for levy of penalty. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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