DCIT (LTU), New Delhi V. M/s International Tractors Ltd., New Delhi

ITA 1459/DEL/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69273 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 11-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI T.S. KAPOOR ITA NO. 1459/DEL/2013 ASSTT. YR: 2005-06 DCIT (LTU), VS. M/S INTERNATIONAL TRACTORS LTD. , NEW DELHI. SONALIKA HOUSE, 283 AGCR ENCLAVE, KARKARDOOMA, DELHI. PAN: AAACI2270H ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI SATPAL SINGH SR. DR RESPONDENT BY : SHRI K. SAMPATH ADV. O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DAT ED 12-12-2012 RELATING TO A.Y. 2005-06. 2. SOLE EFFECTIVE GROUND RAISED IS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY LEVIED U/S 271(1)(C) IN RESPECT OF ADDITION OF RS. 1,89,25,000/- ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S 35(2AB) OF THE I.T. A CT AS THE DEPARTMENT HAS NOT ACCEPTED THE ORDER OF THE ITAT O N THIS ISSUE IN QUANTUM APPEAL AND HAS FILED AN APPEAL BEFORE HO NBLE HIGH COURT. 3. LD. DR FAIRLY CONCEDES THAT IN QUANTUM APPEAL TH E ITAT DELHI BENCH C VIDE ORDER DATED 11-5-2012 IN ITA NO. 6071/DEL/ 2010 HAS DELETED THE DISALLOWANCE U/S 35(2AB). ITA 1459/DEL/2013 INTERNATIONAL TRACTORS LTD. 2 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIAL AVAILABLE ON RECORD. SINCE THE QUANTUM DISALLOWANCE MADE U/S 35( 2AB) HAS BEEN DELETED BY THE ITAT, THE PENALTY U/S 271(1)(C) IMPOSED ON A CCOUNT OF SUCH DISALLOWANCE DOES NOT SURVIVE. 4.1. THE CIT(A) HAS DELETED THE PENALTY QUA ADDITIO N U/S 35(2AB) BY OBSERVING AS UNDER: 5. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE FA CTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LAW IN THIS REGARD. SO FAR AS THE FIRST GROUND OF ADDITION UNDER SECTION 35(2AB) IS CONCERN ED, SINCE THE ITAT, WHICH IS THE FINAL FACT FINDING BODY, HAD ALL OWED THE APPEAL ON THIS GROUND, KEEPING IN VIEW THE ABOVE REFERRED DECISION OF THE GUJARAT HIGH COURT, THERE IS IN FACT NO INSTANCE OF CONCEALMENT OR FURNISHING OF INACCURATE PARTICULARS. 5.2. HOWEVER, ON THE OTHER GROUND OF ADDITION OF RS . 2,10,875/- , THE APPELLANT COULD NOT FURNISH DETAIL AND ANY SU PPORTING EVIDENCE IN CLAIMING DEDUCTION UNDER SECTION 37 TIL L THE STAGE OF APPEAL BEFORE THE ITAT. SINCE THE ITAT IS THE FINAL FACT FINDING AUTHORITY WHICH HAS UPHELD THE DISALLOWANCE ON THIS GROUND AND THERE ARE NO EVIDENCES THAT SUCH EXPENSES WERE WHOL LY AND EXCLUSIVELY FOR BUSINESS PURPOSES AND WERE NOT CAPI TAL OR PERSONAL IN NATURE, I HOLD THAT THE APPELLANT COMPA NY HAD FURNISHED INACCURATE PARTICULARS OF INCOME IN RESPE CT OF VARIOUS EXPENSES EMBEDDED IN THE AMOUNT OF RS. 2,10,875/-. 5.3. IN VIEW OF THE ABOVE, LEVY OF PENALTY UNDER SE CTION 271(1)(C) IS CONFIRMED TO THE EXTENT OF THE ABOVE D ISALLOWANCE OF RS. 2,10,875/- UPHELD BY THE ITAT. THE APPELLANT CO MPANY GETS RELIEF ON THE BALANCE AMOUNT. ITA 1459/DEL/2013 INTERNATIONAL TRACTORS LTD. 3 4.2. SINCE THE QUANTUM ADDITION U/S 35(2AB) STANDS DELETED BY THE ITAT, WE SEE NO INFIRMITY IN THE ORDER OF CIT(A) IN DELET ING THE PENALTY U/S 271(1)(C) TO THAT EXTENT. THE ORDER OF CIT(A) IS AC CORDINGLY UPHELD. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 16-09-2013. SD/- SD/- ( T.S. KAPOOR ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH SEPT. 2013. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR