DCIT, Circle- 1, LTU, New Delhi V. The Oriental Insurance Co. Ltd., New Delhi

ITA 1749/DEL/2018

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116055 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 11-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER ITA No.1411/Del/2018 Assessment Year: 2011-12 The Oriental Insurance Co. Ltd. A-25/27, Asaf Ali Road, New Delhi PAN No.AAACT0627R Vs DCIT, Circle-1 LTU, New Delhi (APPELLANT) (RESPONDENT) ITA No.1749/Del/2018 Assessment Year: 2011-12 DCIT, Circle-1 LTU, New Delhi Vs. The Oriental Insurance Co. Ltd. A-25/27, Asaf Ali Road, New Delhi PAN No.AAACT0627R (APPELLANT) (RESPONDENT) Appellant by Sh. Tarandeep Singh, Advocate Respondent by Sh. T. James Singson, CIT DR Date of hearing: 10/08/2023 Date of Pronouncement: 16/08/2023 ORDER PER N. K. BILLAIYA, AM: ITA No.1411/Del/2018 and 1749/Del/2018 are cross appeals by the assessee and the revenue preferred against the 2 order of the CIT(A)-22, New Delhi dated 29.12.2017 pertaining to A.Y.2011-12. 2. Both these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity. The common grievance in both these appeals relates to the levy of penalty u/s.271 (1)(c) of the Act. 3. The roots for the levy of penalty lie in the assessment order dated 13.01.2014 framed u/s.143(3) of the Act wherein the following additions were made :- S.No. Particulars Amount (in Rs.) 1 Profit on sale of investment 10,27,94,88,259/- 2 Interest income not provided as income 80,52,21,000/- 3 Disallowance of depreciation u/s. 32 1,04,90,324/- 4 Disallowance u/s. 14A 49,84,91,810/- 5. Disallowance of guest house expenses 47,43,236/- 6 Provision for standard assets 2,94,82,474/- 4. Penalty proceedings were separately initiated and penalty were levied accordingly on the additions sustained. 3 5. Before us the Counsel for the assessee stated that all the quantum additions have been deleted by this Tribunal, therefore, the penalty does not have any legs to stand. The DR fairly conceded to this. 6. We have carefully perused the orders of the authorities below. We find force in the contention of the Counsel. This Tribunal in ITA No.200/Del/2016 order dated 22.11.2022 had the occasion to consider the quarrel relating to the quantum additions. A careful perusal of the order of the Tribunal shows that the quantum additions have been deleted. However, we find that the issue relating to the disallowance of depreciation has been set aside to the files of the AO, therefore, to this extent the AO is directed to decide the issue of levy of penalty after deciding the quantum. 7. Since all other additions have been deleted we do not find any merit in the levy of penalty u/s. 271 (1) (c) of the Act. 8. In the result, the appeal of the revenue is dismissed and that of the assessee is allowed. Order pronounced in the open court on 16.08.2023. Sd/- Sd/- [YOGESH KUMAR US] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: .08.2023 *Neha*