Mr.althi Venkata Narendraraju v. Income Tax Officernon-Corporate Ward 22(3)Tambaramchennai-45

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 11.06.2019 Coram THE HONOURABLE MR. JUSTICE M.SUNDAR W.P.No.12940 of 2019and WMP.No. 13100 of 2019 Mr.Althi Venkata Narendraraju ...Petitioner vs. Income Tax OfficerNon-Corporate Ward 22(3)TambaramChennai-45.... Respondent Writ Petition filed under Article 226 of theConstitution of India praying for issuance of a Writ ofCertiorarified Mandamus, calling for the records comprised inthe order of the Respondent under section 271(1)(c) Income TaxAct,1961,inPANACUPN4840MinordernumberPAN:ACUPM4840M/2014-15 dated 19.03.2019 on the file of theRespondent, quash the same and direct the Respondent to hear thematter afresh after giving the Petitioner an opportunity ofbeing heard. For Petitioner : Mr.N.V.Balaji For Respondents : Mrs.Hema Muralikrishnan Senior Standing Counsel. ORDER Mr.N.V.Balaji, learned counsel on record for writ petitionerand Mrs.Hema Muralikrishnan, learned Senior Standing Counsel onbehalf of sole respondent are before this Court. 2.This matter is listed under the caption “ADJOURNEDADMISSION” today(11.06.2019). 3.With the consent of both learned counsel, the main writpetition itself is being taken up, heard out and disposed of. 4. In the light of the trajectory which the proceedingspertaining to the Income Tax assessment qua CASS have beentaken, the entire matter now turns on a very narrow compass. https://hcservices.ecourts.gov.in/hcservices/ 5. An order dated 19.03.2019 bearing reference No.PANACUPN4840M/2014-15' (hereinafter 'impugned order' for brevity)has been called in question in the instant writ petition by thewrit petitioner assessee. The impugned order is one that leviespenalty on the writ petitioner assessee under Section 271(1)(c)of the 'Income Tax Act, 1961' (hereinafter 'IT Act' for brevity)and the relevant assessment year is AY 2014 -2015. 6. It is submitted that assessment out of which the impugnedorder came to be passed was assailed before the Commissioner(Appeals) and thereafter carried to the 'Income Tax AppellateTribunal' ( hereinafter 'ITAT' for brevity). 7. It is submitted that pending proceedings before ITAT,wherein the parent assessment for AY 2014 -2015 itself is underchallenge, the impugned order of imposing penalty under Section271(1)(c) of IT Act came to be passed. 8. Pending writ petition, it is now submitted by both theaforesaid learned counsel without any disputation ordisagreement that ITAT has since disposed of the appealpreferred by the writ petitioner/assessee being ITANo.2840/Chny/2018 in and by an order dated 17.05.2019. 9. Suffice to say that by the aforesaid order, the ITAT hasremitted the matter back to the original authority i.e.,respondent in the instant writ petition. 10. Therefore, both the learned counsel jointly makes asubmission in unison that impugned order also deserves to be setaside albeit with a rider that the penalty proceedings can berevived subject to and depending on the outcome of theproceedings before original authority post remand by ITAT quathe parent assessment. 11. In the light of the aforesaid trajectory pending writpetition, particularly the order of ITAT as well as the hearingin the instant case today before this Court, the following orderis passed: a) Impugned order dated 19.03.2019 bearingreference No.PAN /2014-15 is set aside.b) Respondent/original authority, shallfirst redo the assessment pursuant to theaforesaid remand order passed by ITAT in ITANo.2840/Chny/2018 dated 17.05.2019. c) Post assessment, in accordance with theremission made by the ITAT subject to outcome ofthe assessment proceedings before the respondent https://hcservices.ecourts.gov.in/hcservices/ and obviously depending on the assessment, it isopen to the respondent to initiate penaltyproceedings afresh. 11. In the light of the aforesaid trajectory pending writpetition, particularly the order of ITAT as well as the hearingin the instant case today before this Court, the following orderis passed: a) Impugned order dated 19.03.2019 bearingreference No.PAN /2014-15 is set aside.b) Respondent/original authority, shallfirst redo the assessment pursuant to theaforesaid remand order passed by ITAT in ITANo.2840/Chny/2018 dated 17.05.2019. c) Post assessment, in accordance with theremission made by the ITAT subject to outcome ofthe assessment proceedings before the respondent https://hcservices.ecourts.gov.in/hcservices/ and obviously depending on the assessment, it isopen to the respondent to initiate penaltyproceedings afresh. With the above direction, instant writ petition is disposedof. There shall be no order as to costs. Consequently, connectedmiscellaneous petition is closed. Sd/- Deputy Registrar (CJ Conf.,) //True Copy// Sub Assistant Registrarmp/rmToIncome Tax OfficerNon-Corporate Ward 22(3)TambaramChennai-45.+1 cc to Mr.N.V.Balaji, Advocate, S.R.No.47201+1 cc to M/s.Hema Muralikrishnan, Advocate, S.R.No.47162W.P.No.12940 of 2019and WMP.No. 13100 of 2019RSI(CO)SSM(03/07/2019)