Shree Radhey Technologies Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1762/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6934 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 23-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K CHATURVEDI
• Section: 271(1)(c)

Judgement Text

ITA NO.- 1762/DEL/2017. SHREE RADHEY TECHNOLOGIES PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: G: NEW DELHI) BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1762/DEL/2017 ( ASSESSMENT YEAR: 2006-07) SHREE RADHEY TECHNOLOGIES PVT. LTD. VS. ACIT, C. CIRCLE-14, NEW DELHI. PAN NO: AAHCS5469H APPELLANT RESPONDENT ASSESSEE BY : SHRI S.K. CHATURVEDI, CA REVENUE BY : SHRI N.K. BANSAL, SR. DR ORDER PER ANADEE NATH MISSHRA, AM THIS APPEAL BY ASSESSEE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-14, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 30.11.2016 FOR ASSESSMENT YEAR 2006-07, ON THE FOLLOWING GROUNDS: 1. THAT THE COMMISSIONER OF INCOME TAX (APPEALS)-1 4, NEW DELHI HAS ERRED BY CONFIRMING THE PENALTY IMPOSED BY THE ACIT, CENT RAL CIRCLE-14, NEW DELHI UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT , 1961 AT RS. 41,11,525/-. THE SAME IS ARBITRARY, ILLEGAL AND AG AINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THAT THE APPELLANT CRAVES LEAVE TO ADD/DELETE/MO DIFY THE GROUNDS OF APPEAL BEFORE OR DURING THE HEARING OF THE APPEAL. ITA NO.- 1762/DEL/2017. SHREE RADHEY TECHNOLOGIES PVT. LTD. PAGE 2 OF 4 (2) THE ASSESSMENT ORDER DATED 31.03.2009 WAS PASSED U /S 153C OF THE INCOME TAX ACT, 1961 (I.T. ACT, FOR SHORT) WHEREIN AN ADDITI ON OF RS. 1,22,14,870/- WAS MADE BY ASSESSING OFFICER (AO, FOR SHORT). THEREAFTER, PE NALTY U/S 271(1)(C) WAS LEVIED BY THE AO VIDE ORDER DATED 27.03.2015, AMOUNTING TO RS. 41 ,11,525/- WHICH WAS @100% TAX SOUGHT TO BE EVADED, IN RESPECT OF THE AFORESAID AD DITION OF RS. 1,22,14,870/-. VIDE IMPUGNED ORDER DATED 30.11.2016 OF LD. CIT(A), THIS PENALTY WAS CONFIRMED. THE PRESENT APPEAL BEFORE INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS BEEN FILED BY THE ASSESSEE AGAINST THE AFORESAID ORDER DATED 30.1 1.2016 WHEREIN THE LD. CIT(A) CONFIRMED THE PENALTY. AT THE TIME OF HEARING BEFO RE US, THE LD. AUTHORIZED REPRESENTATIVE (AR, FOR SHORT) FOR THE ASSESSEE S UBMITTED THAT VIDE ORDER DATED 06/04/2018, ITAT HAS ALREADY DELETED THE QUANTUM AD DITION OF THE AFORESAID AMOUNT OF RS. 1,22,14,870/- IN ITA NO. -3228/DEL/2013. HE AL SO FILED A COPY OF THE AFORESAID ORDER DATED 06/04/2018 IN ITA NO.- 3228/DEL/2013. THE L D. AR OF THE ASSESSEE SUBMITTED THAT THE PENALTY LEVIED U/S 271(1)(C) OF I.T. ACT S HOULD BE DELETED TOO, AS THE CORRESPONDING QUANTUM ADDITION HAS ALREADY BEEN DEL ETED BY ITAT. THE LD. SR. DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHOR T) APPEARING FOR REVENUE DID NOT DISPUTE THE FACT CLAIMED BY THE LD. AR OF THE ASSES SEE THAT THE QUANTUM ADDITION (CORRESPONDING TO AFORESAID AMOUNT OF RS. 41,11,525 /- WHICH THE PENALTY WAS LEVIED BY THE ASSESSING OFFICER, U/S 271(1)(C) OF I.T. ACT; W HICH IS DISPUTED IN THE PRESENT APPEAL) HAS ALREADY BEEN DELETED BY ITAT. HOWEVER, HE RELI ED ON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO.- 1762/DEL/2017. SHREE RADHEY TECHNOLOGIES PVT. LTD. PAGE 3 OF 4 (2.1) AFTER HEARING BOTH SIDES, WE ARE OF THE VIEW THAT PENALTY U/S 271(1)(C) OF I.T ACT OF RS. 41,11,525/- LEVIED BY AO HAS NO LEGS TO STAND A T PRESENT, WHEN THE CORRESPONDING ADDITIONS MADE BY THE AO HAVE ALREADY BEEN DELETED BY ITAT VIDE ITS AFORESAID ORDER DATED 06.04.2018. IT HAS NOT BEEN DISPUTED BY LD. D R THAT THE AFORESAID QUANTUM ADDITION DOES NOT SURVIVE, THE PENALTY LEVIED U/S 271(1)(C) OF I.T. ACT ON THE CORRESPONDING QUANTUM ADDITION ALSO CANNOT SURVIVE. WE TAKE SUPP ORT FROM JUDICIAL PRECEDENT IN THE CASE OF K.C. BUILDERS VS. ACIT 135 TAXMAN 461 (SC), IN WHICH THE HONBLE APEX COURT HELD THAT WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORD ER, ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT WAS LEVIED, ARE DELETED, BY ITAT OR OTH ERWISE, THE PENALTY CANNOT STAND BY ITSELF AND IS LIABLE TO BE CANCELLED. IN SUCH A SIT UATION, THERE REMAINS NO BASIS AT ALL AT PRESENT FOR LEVYING THE PENALTY U/S 271(1)(C) OF I. T. ACT , AND THEREFORE, IN SUCH A CASE, NO SUCH PENALTY CAN REMAIN PRESENTLY. IN VIEW OF THE FOREGOING, THE PENALTY LEVIED U/S 271(1)(C) OF I.T. ACT (IN RESPECT OF QUANTUM ADDITI ON ALREADY DELETED BY ITAT IN AFORESAID ORDER DATED. 06.04.2018 IN ITA NO.- 3228/DEL/2013) IS HEREBY CANCELLED. ACCORDINGLY, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DAY OF JULY, 2019. SD/- SD/- (BHAVNESH SAINI) (ANADEE NATH MISS HRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 30.07.2019 POOJA/- ITA NO.- 1762/DEL/2017. SHREE RADHEY TECHNOLOGIES PVT. LTD. PAGE 4 OF 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER