M/s. A B Movies Pvt. Ltd., Noida V. ACIT, New Delhi

ITA 1063/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2821 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 24-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN SENIOR
• Assessee Lawyers: ANANYA KAPOOR S; SALIL KAPOOR MS SOUMYA SINGH
• Section: 80IB

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 A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI BHAVNESH SAINI SHRI BHAVNESH SAINI SHRI BHAVNESH SAINI SHRI BHAVNESH SAINI, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA ITAITA ITA NO NONO NO . .. . 1063/DEL/2014 1063/DEL/2014 1063/DEL/2014 1063/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., (NOW MERGED WITH WAVE (NOW MERGED WITH WAVE (NOW MERGED WITH WAVE (NOW MERGED WITH WAVE INFRATECH PVT. INFRATECH PVT. INFRATECH PVT. INFRATECH PVT.LTD.), LTD.), LTD.), LTD.), C CC C- -- -1, SECTOR 1, SECTOR 1, SECTOR 1, SECTOR- -- -3, 3,3, 3, NOIDA, NOIDA, NOIDA, NOIDA, UTTAR PRADESH UTTAR PRADESH UTTAR PRADESH UTTAR PRADESH 201 301. 201 301. 201 301. 201 301. PAN : AADCA2334D. PAN : AADCA2334D. PAN : AADCA2334D. PAN : AADCA2334D. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -4, 4,4, 4, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SALIL KAPOOR, MS. SOUMYA SINGH AND MS. ANANYA KAPOOR, ADVOCATES. RESPONDENT BY : SHRI S.K. JAIN, SENIOR DR. DATE OF HEARING : 08.06.2017 08.06.2017 08.06.2017 08.06.2017 DATE OF PRONOUNCEMENT : 13.06.2017 13.06.2017 13.06.2017 13.06.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-1 0 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XII, N EW DELHI DATED 4 TH NOVEMBER, 2013. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IN THIS APPEAL IS AGAINST THE LEVY OF PENALTY OF `75,720/- U/S 271(1)(C) OF TH E INCOME-TAX ACT, 1961. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND P ERUSED THE MATERIAL PLACED BEFORE US. THE FACTS OF THE CASE ARE THAT ADMITTEDLY THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80IB(7A) OF THE ACT. FOR THE ITA-1063/DEL/2014 2 YEAR UNDER CONSIDERATION, THE ASSESSEE CLAIMED DEDUCTION OF `1,99,66,840/-. THE ASSESSING OFFICER WAS OF THE OPINIO N THAT ASSESSEE WAS NOT ENTITLED TO THE DEDUCTION IN RESPECT OF CERTA IN INCOME I.E., INTEREST ON FDR, MISCELLANEOUS INCOME AND INTEREST ON SE CURITIES. ACCORDINGLY, HE REDUCED THE DEDUCTION CLAIMED BY TH E ASSESSEE BY `2,22,776/-. HE ALSO LEVIED THE PENALTY FOR REDUCTI ON IN THE DEDUCTION U/S 80IB WHICH IS SUSTAINED BY THE CIT(A). 4. AFTER CONSIDERING THE FACTS OF THE CASE, WE ARE OF THE OPINION THAT ON THE FACTS OF THE ASSESSEES CASE, THE DECISION OF HONBL E APEX COURT IN THE CASE OF CIT VS. RELIANCE PETROPRODUCTS PVT.LTD . (2010) 322 ITR 158 (SC) WOULD BE SQUARELY APPLICABLE, WHEREIN THEI R LORDSHIPS HELD AS UNDER :- WHERE THERE IS NO FINDING THAT ANY DETAILS SUPPLIED B Y THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE THERE IS NO QUESTION OF INVITING TH E PENALTY UNDER SECTION 271(1)(C). A MERE MAKING OF A CLAIM, WHICH IS NOT SUSTAINABLE IN LAW, BY ITSELF, WILL NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS REGARDIN G THE INCOME OF THE ASSESSEE. SUCH A CLAIM MADE IN THE RETU RN CANNOT AMOUNT TO FURNISHING INACCURATE PARTICULARS. 5. IN FACT, IN THE CASE UNDER APPEAL, EVEN THE ASSESSEE IS NOT FOUND TO BE NOT ENTITLED TO DEDUCTION. THE ASSESSEE IS HELD T O BE ENTITLED TO DEDUCTION U/S 80IB BUT THERE WAS A MINOR MODIFICATION IN THE QUANTUM OF DEDUCTION FOR WHICH PENALTY U/S 271(1)(C) HAS BEEN LEVIED. IN OUR OPINION, MERELY BECAUSE THE QUANTUM OF DEDUCTION CLA IMED HAS BEEN REDUCED WOULD NOT AMOUNT TO CONCEALMENT OF INCOME. IT IS NOT THE CASE OF THE REVENUE THAT THE ASSESSEE FURNISHED ANY WRONG FACTS OR INACCURATE PARTICULARS. MERELY BECAUSE SOME PART OF INCOME, IN THE OPINION OF THE ASSESSING OFFICER, IS NOT ELIGIBLE FOR D EDUCTION U/S ITA-1063/DEL/2014 3 80IB(7A), IT WILL NOT AMOUNT TO CONCEALMENT. WE, T HEREFORE, CANCEL THE PENALTY IMPOSED U/S 271(1)(C) OF THE ACT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 13.06.2017. SD/- SD/- (BHAVNESH SAINI (BHAVNESH SAINI (BHAVNESH SAINI (BHAVNESH SAINI ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER PRESIDENT PRESIDENT PRESIDENT PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., M/S AB MOVIES PVT.LTD., (NOW MERGED WITH WAVE INFRATECH PVT.LTD.), (NOW MERGED WITH WAVE INFRATECH PVT.LTD.), (NOW MERGED WITH WAVE INFRATECH PVT.LTD.), (NOW MERGED WITH WAVE INFRATECH PVT.LTD.), C CC C- -- -1, SECTOR 1, SECTOR 1, SECTOR 1, SECTOR- -- -3, NOIDA, UTTAR PRADESH 3, NOIDA, UTTAR PRADESH 3, NOIDA, UTTAR PRADESH 3, NOIDA, UTTAR PRADESH 201 301. 201 301. 201 301. 201 301. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOM ASSISTANT COMMISSIONER OF INCOM ASSISTANT COMMISSIONER OF INCOM ASSISTANT COMMISSIONER OF INCOME TAX, E TAX, E TAX, E TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -4, NEW DELHI. 4, NEW DELHI. 4, NEW DELHI. 4, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR