ACIT, New Delhi V. M/s Sandhu Contractors Pvt. Ltd., New Delhi

ITA 1772/DEL/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9144 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 30-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: A N KHURANA
• Section: 271(1)(c)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1772/DEL/2015 (A.Y. 2007-08) ACIT, CIRCLE 22(1), NEW DELHI VS. M/S SANDHU CONTRACTORS PVT. LTD. C-153A, MOTI NAGAR, NEW DELHI 15 (PAN: AAACS2782A) REVENUE BY MS. ASHIMA NEB, SR. DR. ASSESSEE BY SH. A.N. KHURANA, CA ORDER PER H.S. SIDHU, JM REVENUE HAS FILED THIS APPEAL AGAINST THE IMPUGNE D ORDER DATED 14.1.2015 PASSED BY LD. CIT(A)-8, NEW DELHI ON THE FOLLOWING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE PENALTY IMPOSED BY THE AO U/S. 271(1)(C) OF THE INC OME TAX ACT, 1961 ON THE GROUND THAT SINCE THE QUANTUM ASSESSMENT IS QUASHED AND ADDITIONS DELETED PENALTY CANNOT BE CONFIRMED. 2 2. SINCE THE DEPARTMENT HAS SEPARATELY FILED APPEAL AG AINST QUASHING OF ASSESSMENT ORDER, APPEAL AGAINST PENALT Y ORDER IS PREFERRED. 3. THE APPELLANT CRAVES TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE O R DURING THE HEARING OF THIS APPEAL. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING, LD. DR RELIED UPON THE O RDER OF THE AO AND REITERATED THE CONTENTS MENTIONED IN THE GROUNDS OF APPEAL. 4. ON THE CONTRARY, LD. COUNSEL FOR THE ASSESSEE SU BMITTED THAT LD. CIT(A) HAS DELETED THE PENALTY IN DISPUTE BECAUSE T HE QUANTUM ASSESSMENT WAS QUASHED AND ALSO THE ADDITION IN DIS PUTE WERE DELETED BY THE LD. CIT(A), HENCE, LD. CIT(A) HAS RIGHTLY DELET ED THE PENALTY. FURTHER HE SUBMITTED THAT THE TRIBUNAL IN ITA NO. 1771/DEL/ 2015 AY 2007-08 VIDE ORDER DATED 12.6.2019 HAS DISMISSED THE REVENUES A PPEAL IN QUANTUM ASSESSMENT, HENCE, THE PENALTY IN DISPUTE DOES NOT STAND IN THE EYES OF LAW AND NEEDS TO BE DELETED BY UPHOLDING THE ORDER OF THE LD. CIT(A) AND ACCORDINGLY, THE REVENUES APPEAL MAY BE DISMISSED. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS ESPECIALLY THE IMPUGNED ORDER AS WELL AS THE TRIBUNALS ORDER DATED 12.6.2019 IN REVENUES APPEAL. WE FIND THAT LD. CIT(A) HAS DELET ED THE PENALTY IN 3 DISPUTE BECAUSE THE QUANTUM ASSESSMENT WAS QUASHED AND ALSO THE ADDITION IN DISPUTE WERE DELETED BY THE LD. CIT(A). WE FURTHER NOTE THAT THE TRIBUNAL IN ASSESSEES OWN CASE IN DEPARTMENTS APPEAL NO. 1771/DEL/2015 AY 2007-08 VIDE ORDER DATED 12.6.2019 HAS DISMISSED THE REVENUES APPEAL IN QUANTUM PROCEEDINGS, HENCE, THE PENALTY IN DISPUTE IN THE PRESENT CASE, DOES NOT STAND IN THE EYES OF LAW, THEREFORE, WE UPHOLD THE ORDER OF THE LD. CIT(A) AND REJECT THE G ROUNDS RAISED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON THIS 09 TH DAY OF JULY, 2019. SD/- SD/- (B.R.R. KUMAR) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 09 TH DAY OF JULY, 2019 SRB COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A), NEW DELHI. 5. CIT(ITAT), NEW DELHI AR, ITAT 4