ACIT, New Delhi V. M/s. Multiple Zones India (P) Ltd., New Delhi

ITA 1403/DEL/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3896 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 19-05-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 18-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA SENIOR
• Keywords: Bonafide mistake

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) SHRI I.P. BANSAL, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.1403/DEL./2011 (ASSESSMENT YEAR : 2006-07) ACIT, CIRCLE 5 (1), VS. M/S. MULTIPLE ZONES INDIA PVT. LTD. NEW DELHI. C-40, OKHLA INDUSTRIAL AREA, PHASE-I I, NEW DELHI. (PAN : AAACM8638D) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI A.K. MONGA, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT(A)-VIII, NEW DELHI DATED 13.01.2011 FOR THE ASSESSMENT YEAR 2006-07. THE GROUNDS OF APPEAL TAKEN BY THE REVENUE READ AS UNDER :- 1. THE ORDER OF THE LEARNED CIT (APPEALS) IS ERRON EOUS & CONTRARY TO FACTS & LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED CIT (A) HAS ERRED IN DELETING THE PENALTY OF RS.6,05,977/- LEVIED U/S 271(1)(D) OF THE INCOME-TA X ACT. 2.1 THE LD. CIT (A) IGNORED THE FINDING RECORDED BY THE A.O AND THE FACT THAT THE ASSESSEE DISCLOSED INCORRECT PARTICULARS OF ITS FRINGE BENEFITS. ITA NO.1403/DEL./2011 2 THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND A NY OF THE ABOVE GROUNDS OF THE APPEAL AT THE TIME OF HEARING. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PURCH ASE AND SALE OF COMPUTER HARDWARE & SOFTWARE AND OTHER RELATED IT S ERVICES. THE RETURN OF INCOME AND FRINGE BENEFIT TAX (FBT) FILED ON 30.11. 2006 WHEREIN THE FRINGE BENEFITS WERE DECLARED AT RS.8,12,043/-. DURING TH E ASSESSMENT PROCEEDINGS, THE ASSESSEE REVISED THE FRINGE BENEFITS BY RS.26,1 2,334/- BY STATING THAT WITH AN INADVERTENT MISTAKE, THE AMOUNT OF CONVEYANCE, T OUR AND TRAVEL, REPAIR, RUNNING AND MAINTENANCE OF MOTOR CYCLE AND DEPRECIA TION ON CAR WERE LEFT OUT FOR THE PURPOSE OF FBT. THE ASSESSING OFFICER INIT IATED THE PROCEEDINGS U/S 271((1)(D) OF THE INCOME-TAX ACT FOR LEVYING THE PE NALTY. THE ASSESSING OFFICER LEVIED THE PENALTY WHICH THE CIT (A) HAD DE LETED AGAINST WHICH THE REVENUE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE REVENUE. NONE ATTENDED ON BEH ALF OF THE ASSESSEE. AFTER HEARING THE LEARNED DR, WE FIND THAT THE ASSE SSEE HIMSELF REVISED THE AMOUNT OF FBT DURING THE ASSESSMENT PROCEEDINGS. A SSESSEE SUO MOTO OFFERED THE ADDITIONAL AMOUNT WHICH WAS LEFT OUT IN ADVERTENTLY. FROM NOWHERE IT IS ESTABLISHED THAT THIS REVISION CAME A FTER PINPOINTING BY THE ASSESSING OFFICER. THERE IS NO EVIDENCE ON RECORD WHICH COULD PROVE THAT ENHANCEMENT OF THE FRINGE BENEFITS FROM RS.8,12,043 TO RS.26,12,334/- WAS IN CONSEQUENCE TO ANY ENQUIRY OR ANY INVESTIGATION CON DUCTED BY THE ASSESSING ITA NO.1403/DEL./2011 3 OFFICER. IN VIEW OF THIS MATTER, THE EXPLANATION F URNISHED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER TO THAT EFFECT THAT TH ERE WAS NO ELEMENT OF DELIBERATENESS ON THE PART OF THE ASSESSEE AND IT W AS BONAFIDE AND INADVERTENT MISTAKE IS CORRECT. KEEPING THESE FACTS IN VIEW, W E HOLD THAT THE REVISION OF COMPUTATION OF FRINGE BENEFITS WAS VOLUNTARY. IT W AS A BONAFIDE MISTAKE WHICH HAD BEEN VOLUNTARILY CORRECTED AND FOR SUCH A N ACTION, ASSESSEE DID NOT DESERVE TO BE VISITED BY PENALTIES. IN VIEW OF THI S, WE SUSTAIN THE ORDER OF THE CIT (A) FOR DELETING THE PENALTY LEVIED U/S 271(1)( D) OF THE INCOME-TAX ACT. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 27 TH DAY OF MAY, 2011. SD/- SD/- (I.P. BANSAL) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 27 TH DAY OF MAY, 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT, DELHI-VIII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.