Case Number: ITA 5420/DEL/2019
Appellant: CFM Materials LP (earlier known as GE Aviation Materials LP), Gurgaon
Respondent: DCIT, Circle-1(3)(1), New Delhi
Assessment Year: 2006-07
Case Filed on: 2019-06-17
Order Type: Final Tribunal Order
Date of Order: 2022-07-29
Pronounced on: 2022-07-29
The case of CFM Materials LP (earlier known as GE Aviation Materials LP) versus DCIT, Circle-1(3)(1), New Delhi, pertains to the assessment year 2006-07. The appeal was filed by CFM Materials LP on 17th June 2019 against an order dated 22nd May 2018 passed by the assessing officer, imposing a penalty under Section 271(1)(c) of the Income Tax Act, 1961.
The appellant, CFM Materials LP, filed the appeal challenging the assessment order issued by the DCIT, Circle-1(3)(1), New Delhi. The primary issue in this case involved the imposition of a penalty under Section 271(1)(c) of the Income Tax Act. The appellant sought to contest the validity and justification of the penalty imposed by the assessing officer.
The case was heard on 30th June 2022 before a bench comprising Shri Saktijit Dey, Judicial Member, and Dr. BRR Kumar, Accountant Member. The appellant was represented by S/Shri Sachit Jolly and Ms. Disha Jham, Advocates, while the respondent was represented by Shri Bhagwati Charan, Senior Departmental Representative.
The appellant raised a preliminary ground challenging the validity of the orders passed by the assessing officer imposing penalty under Section 271(1)(c) on the grounds that they were barred by limitation. The appellant argued that the penalty orders were passed beyond the period of limitation prescribed under Section 275(1) of the Income Tax Act.
After considering the submissions of both parties and reviewing the material on record, the tribunal noted that the penalty orders were indeed passed beyond the period of limitation prescribed under Section 275(1) of the Income Tax Act. The tribunal observed that the order passed by the Tribunal disposing of quantum appeals was received by the Commissioner of Income-Tax (Judicial) on 17th April 2017, and the penalty orders were passed on 26th April 2018, which was beyond the prescribed limitation period.
The tribunal referred to the decision of the Hon’ble jurisdictional High Court in similar cases, where it was held that penalty orders passed beyond the period of limitation prescribed under Section 275(1) are invalid and without jurisdiction. The tribunal quashed the penalty orders on the grounds that they were barred by limitation and allowed the appeals filed by the appellant.
The final judgment in the case of CFM Materials LP vs DCIT, Circle-1(3)(1), New Delhi, resulted in the appeal being allowed. The tribunal quashed the penalty orders imposed under Section 271(1)(c) of the Income Tax Act on the grounds that they were barred by limitation as prescribed under Section 275(1) of the Act.
The order was pronounced in the open court on 29th July 2022 by Shri Saktijit Dey, Judicial Member, and Dr. BRR Kumar, Accountant Member.
Order Date: 29th July 2022
Pronounced by: Shri Saktijit Dey, Judicial Member, and Dr. BRR Kumar, Accountant Member
Assistant Registrar: ITAT Delhi Benches
Copy forwarded to:
Date of dictation: 22.07.2022
Date on which the draft of order is placed before the Dictating Member: 26.07.2022
Date on which the draft of order is placed before the other Member:
Date on which the approved draft of order comes to the Sr. PS/PS: 27.07.2022
Date on which the fair order is placed before the Dictating Member for pronouncement: 27.07.2022
Date on which the fair order comes back to the Sr. PS/PS: 27.07.2022
Date on which the final order is uploaded on the website of ITAT: 29.07.2022
Date on which the file goes to the Bench Clerk: 29.07.2022
Date on which files goes to the Head Clerk:
Date on which file goes to the Assistant Registrar for signature on the order:
Date of dispatch of order:
CFM Materials LP vs DCIT, Circle-1(3)(1), New Delhi – Penalty Imposition Under Section 271(1)(c)
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