M/s. Jinvani Systech. (P) Ltd., Saharanpur V. DCIT, Saharanpur

ITA 1766/DEL/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0213 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 29-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 16-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAURAV DUDEJA
• Assessee Lawyers: PRATIYUS H JAIN
• Keywords: Non-deduction of tax
• Section: 154

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI H.S. SIDHU: JUDICIAL MEMBER ITA NOS. 1765 & 1766/DEL/2012 ASSTT. YR: 2008-09 JINVANI SYSTECH (P) LTD., VS. DCIT CIRCLE, C/O PRATIYUSH JAIN & CO., SAHARANPUR. CHANDRA NIKUNJ, COURT ROAD, NEAR PUNJAB & SIND BANK, SAHARANPUR. PAN: AABCJ 3393 D ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI PRATIYUSH JAIN CA RESPONDENT BY : SHRI GAURAV DUDEJA SR. DR DATE OF HEARING : 30/06/2015. DATE OF ORDER : 22/07/2015. O R D E R PER S.V. MEHROTRA, A.M: THESE APPEALS, PREFERRED BY THE ASSESSEE, ARE DI RECTED AGAINST CIT(A)S SEPARATE ORDERS DATED 18-01-2012 PASSED U/S 154 AND 271(1)(C) OF THE ACT, RELATING TO A.Y. 2008-09. BOTH THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CO NVENIENCE. ITA NO. 1765/DEL/2012 (AY 2008-09 U/S 154 OF THE I.T. ACT): 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE SUBMITTED THAT HE DOES NOT WANT TO PRESS ITA NO. 1765/DEL/2012, FILED BY T HE ASSESSEE AGAINST THE ORDER OF 2 LD. CIT(A) DATED 18-1-2012 IN APPEAL NO. 162/11-12/ MZR. HE PRAYED THAT THE ASSESSEE MAY BE PERMITTED TO WITHDRAW THE APPEAL. 3. LD. DR DID NOT RAISE ANY OBJECTION TO THE REQUES T MADE ON BEHALF OF THE ASSESSEE. ACCORDINGLY, APPEAL NO. 1765/DEL/2015 IS DISMISSED AS WITHDRAWN. ITA NO. 1766/DEL/2012 (AY 2008-09 U/S 271(1)(C)) : 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY, IN THE RELEVANT ASSESSMENT YEAR, WAS ENGAGED IN DEVELOPMENT OF SOFT WARE. THE ASSESSEE FILED ITS RETURN DECLARING NIL INCOME ON 29-3-2009. THE AO NOTICED THAT ASSESSEE HAD DEBITED A SUM OF RS. 2,85,000/- AS REN T OF THE PREMISES, BUT DID NOT DEDUCT TDS AS PRESCRIBED U/S 194-I. HE, ACCORDI NGLY, MADE DISALLOWANCE U/S 40(A)(IA) OF THE I.T. ACT AND INITIATED PENALTY PROCEEDINGS U/S 271(1)(C). 5. IN HIS ORDER PASSED U/S 271(1)(C) OF THE I.T. AC T THE AO HAS OBSERVED THAT ASSESSEE HAD FILED APPLICATION U/S 154 IN WHIC H IT WAS STATED THAT RENT FOR THREE MONTHS AMOUNTING TO RS. 1,71,000/-, TAX WAS DEDUCTED AND DEPOSITED IN THE GOVT. A/C. HOWEVER, HE NOTICED THAT FROM TH 4E RECORD AS WELL AS FROM THE COMPUTATION FILED, IT WAS EVIDENT THAT THERE WA S NO SUPPORTING DOCUMENT FOR DEDUCTION OF TAX AND DEPOSIT IN GOVT. ACCOUNT. HE NOTED THAT THE PETITION U/S 154 WAS, ACCORDINGLY, REJECTED. HE LEVIED PENAL TY U/S 271(1)(C) AMOUNTING TO RS. 90,000/-, WHICH WAS CONFIRMED BY L D. CIT(A). 6. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PENALTY U/S 271(1)(C) COULD NOT BE LEVIED FOR THE DEFAULT IN MAKING TDS B ECAUSE THE SAME IS LEVIABLE U/S 271C AND NOT U/S 271(1)(C) OF THE I.T. ACT. 7. HAVING HEARD BOTH THE PARTIES, WE FIND THAT PENA LTY FOR FAILURE TO DEDUCT TAX AT SOURCE IS LEVIABLE U/S 271C AND, THER EFORE, THE IMPUGNED PENALTY LEVIED BY AO U/S 271(1) (C) AND CONFIRMED BY LD. CIT(A), CANNOT 3 STAND IN THE EYE OF LAW. ACCORDINGLY, THE SAME IS C ANCELLED. ASSESSEES APPEAL IS ALLOWED. 8. IN THE RESULT, ITA NO. 1765/DEL/2012 IS DISMISSE D AND ITA NO. 1766/DEL/2012 IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 22, 07,2015. SD/- SD/- (H.S. SIDHU) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 22-07-2015. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT(A) 4. CIT 5. DR (ITAT)