ITO, New Delhi V. M/s. Quantum Coders Ltd., New Delhi

ITA 176/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7657 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 12-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 09-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKHI BIM AL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI C.M. GARG: JUDICIAL MEMBER ITA NO. 176/DEL/2014 ASSTT. YR: 2007-08 INCOME-TAX OFFICER, VS. QUANTUM CODERS LTD., WARD-14(4), NEW DELHI. 501-502, PLOT NO. 1, DDA BLDG. DISTT. CENTER, JANAKPURI, NEW DELHI. PAN: AAACQ 1197 M ( APPELLANT ) (RESPONDENT) APPELLANT BY : MS. RAKHI BIMAL SR DR. RESPONDENT BY : SHRI VED JAIN CA DATE OF HEARING : 12/05/2016. DATE OF ORDER : 27/05/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 2 3.10.2013, PASSED BY THE LD. CIT(A)-XVII, NEW DELHI, RELATING TO A.Y . 2007-08. 2. BRIEF FACTS OF THE CASE ARE THAT DURING THE YEA R THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF SOFTWARE EXPORTS. IT HAD CLAIMED DEDUCTION OF RS. 38,98,220/- U/S 10A FOR THE YER UNDER ASSESSMEN T. THE AO NOTICED THAT ASSESSEE COMPANY GOT APPROVAL FROM SOFTWARE TECHNOL OGY PARKS OF INDIA (STPI) ON 8.12.2006, WHEREAS IT HAD CLAIMED DEDUCTI ON FOR THE COMPLTE YEAR VIZ. FROM 1.4.2006 TO 31.3.2007. HE POINTED OUT THA T AS PER THE APPROVAL FROM STPI DATED 8.12.2006, LETTER OF PERMISSION WAS VALID FOR 3 YEARS FROM ITS DAE OF ISSUE WITHIN WHICH THE PROJECT WAS TO BE IMPLEMENTED AND 2 COMMERCIAL PRODUCTION COMMENCED. THE AO, THEREFORE, ALLOWED DEDUCTION U/S 10A OF RS. 12,17,526/- FOR THE PERIOD FROM 8.12 .2006 TO 31.3.2007 AND DISALLOWED THE DEDUCTION CLAIMED TO THE EXTENT OF RS. 26,80,695/-(RS. 38,98,220 RS. 12,17,526). HE INITIATED PENALTY PR OCEEDINGS U/S 271(1)(C) AND AFTER CONSIDERING THE ASSESSEES SUBMISSIONS LE VIED A PENALTY OF RS. 13,12,154/-. 3. LD. CIT(A) DELETED THE PENALTY BY OBSERVING THAT IN QUANTUM APPEAL THE ITAT VIDE ITS ORDER DATED 30.4.2013 HAD DELETED THE ADDITION AND THEREFORE NO GROUND FOR LEVY OF PENALTY REMAINED. 4. AGGRIEVED THE DEPARTMENT IS IN APPEAL BEFORE US AND HAS TAKEN FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 13, 12,134/- IMPOSED BY THE ASSESSING OFFICER U/S 271( 1)( C) OF THE ACT ON THE ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S 10A OF THE ACT. 1.1 ON THE FACTS & IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 13, 12,134/- KEEPING IN VIEW THE FAVORABLE DECISION MADE BY THE HON'BLE ITAT IN RESPECT OF QUANTUM APPEAL BUT IGNORING THE FACT THAT REVENUE IS IN APPEAL IN THE HON'BLE HIGH COURT AGAI NST THE SAID DECISION OF THE ITAT. HENCE THE ISSUE HAS NOT ATTAI NED ITS FINALITY. 2. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FR ESH GROUNDS OF APPEAL AND/OR DELETE OR AMEND ANY OF THE GROUNDS OF APPEAL. 5. AT THE TIME OF HEARING LD. COUNSEL FOR THE ASSES SEE REFERRED TO GROUNDS OF APPEAL AND POINTED OUT THAT THE DEPARTMENT HAD S PECIFICALLY TAKEN A GROUND THAT AGAINST TRIBUNALS ORDER IN QUANTUM, T HE MATTER WAS PENDING BEFORE HONBLE HIGH COURT. HE FILED BEFORE US A COP Y OF HONBLE HIGH 3 COURTS DECISION DATED 4.2.2014 IN ITA NO. 542/2013 , WHEREIN THE HONBLE HIGH COURT HAS DISMISSED THE DEPARTMENTS APPEAL AN D THE REVIEW PETITION ALSO FILED BY THE DEPARTMENT WAS DISMISSED ON 1.8.2 014. IN VIEW OF THESE FACTS, THE PENALTY LEVIED BY THE REVENUE HAS NO LEG S TO STAND. ACCORDINGLY, ORDER OF LD. CIT(A), DELETING THE PENALTY LEVIED U/ S 271(1)(C) IS UPHELD. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCEMENT IN OPEN COURT ON 27/05/2016. SD/- SD/- (C.M. GARG) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27/05/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.