M/s. Naksha Enterprises Ltd., New Delhi V. DCIT, New Delhi

CO 129/DEL/2015

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1431 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 21-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 11-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Assessee Lawyers: HARISH CHOUDHARY CAS; ASHOK AGRAWAL
• Keywords: Depreciation
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC- -- -1 11 1 : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 2161/DEL/2014 2161/DEL/2014 2161/DEL/2014 2161/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009 - -- - 10 1010 10 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), 13(1), 13(1), 13(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S NAKSHA ENTERPRISES LIMITE M/S NAKSHA ENTERPRISES LIMITE M/S NAKSHA ENTERPRISES LIMITE M/S NAKSHA ENTERPRISES LIMITE D, D,D, D, B BB B- -- -458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 065. 110 065. 110 065. 110 065. PAN : AACCN2102R. PAN : AACCN2102R. PAN : AACCN2102R. PAN : AACCN2102R. (APPELLANT) (RESPONDENT) CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION NO NONO NO .129/DEL/2015 .129/DEL/2015 .129/DEL/2015 .129/DEL/2015 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S NAKSHA ENTERPRISES M/S NAKSHA ENTERPRISES M/S NAKSHA ENTERPRISES M/S NAKSHA ENTERPRISES LIMITED, LIMITED, LIMITED, LIMITED, B BB B- -- -458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 065. 110 065. 110 065. 110 065. PAN PAN PAN PAN : AACCN2102R. : AACCN2102R. : AACCN2102R. : AACCN2102R. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), 13(1), 13(1), 13(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI AMRIT LAL, DR. ASSESSEE BY : SHRI ASHOK AGRAWAL AND SHRI HARISH CHOUDHARY, CAS. DATE OF HEARING : 21.09.2015 21.09.2015 21.09.2015 21.09.2015 DATE OF PRONOUNCEMENT : 05.10.2015 05.10.2015 05.10.2015 05.10.2015 ORDER ORDER ORDER ORDER THE APPEAL BY THE REVENUE AND THE CROSS-OBJECTION B Y THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-10 ARE DIRECTED AGAIN ST THE ORDER OF LEARNED CIT(A)-XVI, NEW DELHI DATED 20 TH JANUARY, 2014. THESE ARE BEING DISPOSED OF WITH THIS CONSOLIDATED ORDER. ITA NO.2161 ITA NO.2161 ITA NO.2161 ITA NO.2161/DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 REVENUES APPEAL : REVENUES APPEAL : REVENUES APPEAL : REVENUES APPEAL :- -- - 2. THE ONLY EFFECTIVE GROUND OF APPEAL OF THE REVEN UE IS GROUND NO.1, WHICH IS REPRODUCED BELOW:- ITA-2161/D/2014 & C.O.129/D/2015 2 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT (A) HAS ERRED IN DELETING THE PENALTY OF RS.3,10,474/- IM POSED BY THE AO U/S 271(1)(C) OF THE ACT HOLDING THAT THE ASSESSEE HAS NOT FURNISHED ANY INACCURATE PARTICULARS. 3. LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUBMI TTED THAT ASSESSMENT AND TAX IN THIS CASE WERE DETERMINED UNDER THE PROVISIONS OF SECTION 115JB OF THE INCOME-TAX ACT, 1961 AND TH E AMOUNT IN QUESTION WAS SHOWN IN THE PROFIT & LOSS ACCOUNT AND DEP RECIATION CHART SEPARATELY AND THEREFORE, NO PENALTY U/S 271(1)(C) OF THE ACT COULD BE LEVIED ON THE ASSESSEE. HE SUBMITTED THAT THE ISSUE IS CO VERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF HON'BLE DELH I HIGH COURT IN CIT VS. NALWA SONS INVESTMENTS LTD. 194 TAXMAN 387 (D ELHI). HE SUBMITTED THAT THE AMOUNT IN QUESTION WAS INADVERTENTL Y NOT SHOWN IN THE COMPUTATION OF INCOME BY THE ASSESSEE. 4. LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMITTED THAT THE LEARNED CIT(A) HAS NOT GONE INTO THE FACTS OF THE CASE AND THE ADDITION IN THE QU ANTUM CASE OF THE ASSESSEE WAS CONFIRMED BY THE LEARNED CIT(A). HE RELIED ON THE ORDER OF THE ASSESSING OFFICER. 5. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARN ED CIT(A). I FIND THAT THE TAX IN THIS CASE WAS DETERMINED UNDER TH E SPECIAL PROVISIONS OF SECTION 115JB OF THE ACT AND THIS SUBMISSI ON OF THE ASSESSEE COULD NOT BE CONTROVERTED ON BEHALF OF THE REV ENUE. THE ISSUE BEFORE ME IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF NALWA SON S INVESTMENTS LTD. (SUPRA). THE ASSESSEES BONA-FIDE ARE ESTABLISHED IN THIS CASE AS THE AMOUNT IS SHOWN IN THE PROFIT & LOSS ACCOUNT AND ALSO I N THE DEPRECIATION CHART AND THE CLAIM OF THE ASSESSEE IS THAT IT COULD NOT ITA-2161/D/2014 & C.O.129/D/2015 3 SHOW THE SAME INADVERTENTLY IN THE COMPUTATION OF IN COME. IN THESE FACTS AND RESPECTFULLY FOLLOWING THE DECISION OF HON'B LE DELHI HIGH COURT IN THE CASE OF NALWA SONS INVESTMENTS LTD. (SUPRA), I CA NCEL THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT AND THE GROUND OF AP PEAL OF THE REVENUE IS DISMISSED. ASSESSEES CROSS ASSESSEES CROSS ASSESSEES CROSS ASSESSEES CROSS- -- -OBJECTION NO.129/DEL/2015 : OBJECTION NO.129/DEL/2015 : OBJECTION NO.129/DEL/2015 : OBJECTION NO.129/DEL/2015 :- -- - 6. THE GROUNDS OF THE CROSS-OBJECTION OF THE ASSESSEE ARE MERELY SUPPORTIVE TO THE ORDER OF THE LEARNED CIT(A) AND, A CCORDINGLY, NEED NO ADJUDICATION, AND ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDE VICE PRESIDE VICE PRESIDE VICE PRESIDE NT NTNT NT VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TAX , DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 2. RESPONDENT : M/S NAKSHA ENTERPRISES LIMITED, M/S NAKSHA ENTERPRISES LIMITED, M/S NAKSHA ENTERPRISES LIMITED, M/S NAKSHA ENTERPRISES LIMITED, B BB B- -- -458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, 458, NEW FRIENDS COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 065. 110 065. 110 065. 110 065. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR