Govind Nagar Sugar Ltd., New Delhi V. Addl. CIT, New Delhi

ITA 1439/DEL/2011

• Counselvise Citation: 143920114 RSA 2011
• Duration Of Justice: 3 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-10-2014
• Assessment Year: 2000-2001
• Appeal Filed On: 22-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH

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 C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1439/DEL/2011 1439/DEL/2011 1439/DEL/2011 1439/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2000 2000 2000 2000 - -- - 01 0101 01 M/S GOVIND NAGAR SUGAR M/S GOVIND NAGAR SUGAR M/S GOVIND NAGAR SUGAR M/S GOVIND NAGAR SUGAR LIMITED, LIMITED, LIMITED, LIMITED, 207, ESSEL HOUSE, 207, ESSEL HOUSE, 207, ESSEL HOUSE, 207, ESSEL HOUSE, 1 11 10, ASAF ALI ROAD, 0, ASAF ALI ROAD, 0, ASAF ALI ROAD, 0, ASAF ALI ROAD, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACG4297N. PAN : AAACG4297N. PAN : AAACG4297N. PAN : AAACG4297N. VS. VS. VS. VS. ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, RANGE RANGE RANGE RANGE- -- -12, 12, 12, 12, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.S.R. KRISHNA, CA. RESPONDENT BY : SHRI SATPAL SINGH, SR.DR. ORDER ORDER ORDER ORDER PER G.D PER G.D PER G.D PER G.D. AGRAWAL, VP . AGRAWAL, VP . AGRAWAL, VP . AGRAWAL, VP : :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-X, NEW DELHI DATED 22 ND DECEMBER, 2010 FOR THE AY 2000-01. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE LEVY OF PENALTY OF `1,23,970/- UNDER SECTION 271D OF THE IN COME-TAX ACT, 1961. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSEE I S A SUGAR MILL. FOR THE YEAR UNDER CONSIDERATION, IT FILED THE RETURN D ISCLOSING THE LOSS OF `3,78,45,250/- WHICH WAS ASSESSED AT THE LOSS OF `3 ,02,58,070/-. 4. AT THE TIME OF HEARING BEFORE US, IT WAS SUBMITT ED BY THE LEARNED COUNSEL THAT THE SUM OF `98,969/- WAS TAKEN FROM BA STI SUGAR MILLS CO.LTD. WHICH IS A SISTER CONCERN AND ANOTHER SUM O F `25,000/- WAS TAKEN FROM M.M. BAGAI WHO IS THE DIRECTOR OF THE AS SESSEE COMPANY. IT ITA-1439/DEL/2011 2 WAS EXPLAINED THAT THE CASH ADVANCE WAS ACCEPTED FR OM THE SISTER CONCERN/DIRECTOR BECAUSE THE CASH WAS URGENTLY REQU IRED FOR PAYMENT OF WAGES. AFTER CONSIDERING THE FACTS OF THE CASE AND THE ARGUMENTS OF BOTH THE SIDES, WE DO NOT CONSIDER IT TO BE A FIT C ASE FOR LEVY OF PENALTY UNDER SECTION 271D OF THE ACT. THE LOAN/ADVANCE IS TAKEN FROM THE SISTER CONCERN/DIRECTOR, THAT TOO, FOR PAYMENT OF W AGES. THE ASSESSEE SUFFERED HUGE LOSSES WHICH SUPPORTS THE CONTENTIONS OF THE ASSESSEES COUNSEL THAT THE ASSESSEE URGENTLY REQUIRED CASH ON CERTAIN DATES FOR PAYMENT OF WAGES. AFTER CONSIDERING ALL THE FACTS, WE ARE OF THE OPINION THAT THE LEVY OF PENALTY UNDER SECTION 271D OF THE ACT WAS NOT JUSTIFIED. THE SAME IS CANCELLED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER, 2014. SD/- SD/- ( (( ( CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 17.10.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S GOVIND NAGAR SUGAR LIMITED, M/S GOVIND NAGAR SUGAR LIMITED, M/S GOVIND NAGAR SUGAR LIMITED, M/S GOVIND NAGAR SUGAR LIMITED, 207, ESSEL HOUSE, 10, ASAF ALI ROAD, 207, ESSEL HOUSE, 10, ASAF ALI ROAD, 207, ESSEL HOUSE, 10, ASAF ALI ROAD, 207, ESSEL HOUSE, 10, ASAF ALI ROAD, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : ADDITIONAL COMMISSIONER OF INCOME T AX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE RANGE RANGE RANGE- -- -12, NEW DELHI. 12, NEW DELHI. 12, NEW DELHI. 12, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR