2013 (5) TMI 898 - AT - Income Tax

Summary

Issues involved: The judgment involves a common issue regarding the penalty levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 for the assessment years 1999-2000, 2000-01, and 2002-03.

Assessment Year 2001-02:
- The appeal was against the penalty imposed by the Assessing Officer u/s 271(1)(c) for concealment of income related to the disallowance of deduction under Section 10A of the Act.
- The Tribunal allowed the appeal as the quantum proceedings were remitted back to the Assessing Officer for determination afresh, rendering the penalty proceedings invalid.
- The penalty levied was deleted, with the direction for the Assessing Officer to proceed in accordance with the law after deciding the quantum proceedings.

Assessment Year 2002-03:
- The Assessing Officer imposed a penalty for partial disallowance of deduction under Section 10A of the Act, which was later scaled down by the CIT(A).
- The Tribunal ruled that since the quantum proceedings were restored back to the Assessing Officer, the penalty proceedings could not survive, leading to the deletion of the penalty.
- The Assessing Officer was directed to proceed in accordance with the law after deciding the quantum proceedings.

Assessment Year 2000-01:
- Similar to the previous years, the penalty was imposed for partial disallowance of deduction under Section 10A of the Act, which was later reduced by the CIT(A).
- The Tribunal held that as the quantum proceedings were remitted back to the Assessing Officer, the penalty proceedings were no longer valid, resulting in the deletion of the penalty.
- The Assessing Officer was instructed to proceed in accordance with the law after deciding the quantum proceedings.

Assessment Year 1999-2000:
- The penalty was imposed for partial disallowance of deduction under Section 10A of the Act, which was later reduced by the CIT(A).
- Following the same pattern as the other years, the Tribunal ruled that since the quantum proceedings were restored back to the Assessing Officer, the penalty proceedings were nullified, leading to the deletion of the penalty.
- The Assessing Officer was directed to proceed in accordance with the law after deciding the quantum proceedings.

Remaining Appeals:
- The appeals filed by the assessee against the common order of the CIT(A) for the assessment years 1999-2000, 2000-01, and 2002-03 were dismissed as infructuous due to being filed belatedly and the issues raised being similar to those addressed in the earlier paragraphs.

This judgment highlights the interplay between quantum proceedings and penalty proceedings under Section 271(1)(c) of the Income Tax Act, emphasizing the need for coherence between the two processes for a fair and just outcome.