Indian Sugar Exim Corporation Ltd., New Delhi V. DCIT, Circle- 12(1), New Delhi

CO 153/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7238 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 3 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 24-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER CO NO.153/DEL./2018 (IN ITA NO.3476/DEL./2018) (ASSESSMENT YEAR : 2010-11) M/S. INDIAN SUGAR EXIM CORPORATION LTD., VS. DCIT, CIRCLE 12 (1), C-BLOCK, ANSAL PLAZA, NEW DELHI. AUGUST KRANTI MARG, NEW DELHI 110 049. (PAN : AACCJ4265F) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SUMIT JAIN, CA REVENUE BY : MS. ANIMA BARNWAL, SENIOR DR DATE OF HEARING : 18.08.2021 DATE OF ORDER : 27.08.2021 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER THE CROSS OBJECTOR, M/S. INDIAN SUGAR EXIM CORPORAT ION LTD. (HEREINAFTER REFERRED TO AS THE ASSESSEE) BY FILI NG THE PRESENT CROSS OBJECTIONS SOUGHT TO SUPPORT THE IMPUGNED ORDER DAT ED 28.02.2018 PASSED BY THE LD. COMMISSIONER OF INCOME-TAX (APPEA LS) QUA THE ASSESSMENT YEAR 2010-11 ON THE GROUNDS INTER ALIA T HAT :- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE ID CIT(A) OUGHT TO HAVE QUASHED THE IMPUGNED ORDER U/S 271 (1)(C ) OF THE INCOME TAX ACT ON THE GROUND THAT NOTICE U/S 271 (1 )(C) OF CO NO.153/DEL/2018 2 THE INCOME TAX ACT DID NOT SPECIFIED WHETHER THE PE NALTY PROCEEDINGS ARE FOR CONCEALMENT OF INCOME OR FOR FU RNISHING OF INACCURATE PARTICULARS OF INCOME. 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ORDER OF PENALTY U/S 271 (1 )(C ) OF THE INCOME TAX ACT DATE D 22.3.2016 IS BAD IN LAW AND NOT IN ACCORDANCE WITH THE LAW. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WITHOUT PREJUDICE, THE ID CIT(A) OUGHT TO HAVE HELD THAT AS THE ASSESSEE HAS OFFERED REASONABLE EXPLANATION REGARDING THE FO REIGN EXCHANGE DERIVATIVE LOSS ALLOWED AS SPECULATIVE LOS S, AND THEREFORE NO PENALTY COULD HAVE BEEN LEVIED . 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WITHOUT PREJUDICE, THE ID CIT(A) OUGHT TO HAVE HELD THAT AS ASSESSEE HAD BONA FIDE BELIEF THAT FOREIGN EXCHANGE DERIVATIVE L OSS IS A NORMAL BUSINESS LOSS NO PENALTY IS LEVIABLE IN THE CASE EV EN ON THIS GROUND. 5 THAT THE ID CIT(A) OUGHT TO HAVE HELD THAT THERE WAS NO PENALTY LEVIABLE IN VIEW OF THE FACT THAT THERE WAS HUGE BROUGHT FORWARD BUSINESS LOSS AND IN INSTANT YEAR, ONLY MAT WAS APPLICABLE. 2. SINCE THE APPEAL FILED BY THE REVENUE BEARING IT A NO.3476/DEL/2018 HAS BEEN DISMISSED VIDE ORDER DATE D 27.08.2021, HENCE THE CROSS OBJECTIONS FILED BY THE ASSESSEE STANDS DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 27 TH DAY OF AUGUST, 2021. SD/- SD/- (ANIL CHATURVEDI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 27 TH DAY OF AUGUST , 2021 TS CO NO.153/DEL/2018 3 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-35, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.