M/s. Nanda Mint & Pine Chemicals Ltd., New Delhi V. DCIT, New Delhi

ITA 184/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2916 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 11-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RAJ KUMAR
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH CNEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA. NO.184/DEL/2017 ASSESSMENT YEAR: 2010-11 NANDA MINT & PINE CHEMICALS LTD., VS DCIT, CIRCLE-13(1), 1/10, MUNSHI NIKETAN, NEW DELHI. ASAF ALI ROAD, NEAR KAMLA MARKET, NEW DELHI PAN : AACCN0965G (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI V. RAJ KUMAR, ADVOCATE DEPARTMENT BY: MS. RINKU SINGH, SR. DR DATE OF HEARING: 20/08/2019 DATE OF ORDER : 03/09/2019 ORDER PER K. NARASIMHA CHARY, J.M. AGGRIEVED BY THE ORDER DATED 23.09.2016 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-6{CIT(A)}, NEW DELHI IN APPEAL NO.187/13-14 FOR THE ASSTT. YEAR 2010-11, ASSESSEE PREFERRED THIS APPEAL. 2. FOR THE ASSTT. YEAR 2010-11, ASSESSEE FILED RETURN OF INCOME SHOWING A LOSS OF RS.36,03,952/- AND THE AO MADE CERTAIN DISALLOWANCES U/S 40A(3) AND ALSO ON ACCOUNT OF ADDITIONAL SALES-TAX DEMAND BESIDES SOME ADMINISTRATIVE EXPENSES AND CONCLUDED THE ASSESSMENT AT A LOSS OF 2 RS.6,11,550/-. ASSESSEE FILED APPEAL AGAINST THE QUANTUM ADDITION AND BY ORDER DATED 11.4.2016, THE LD. AO NOT ONLY DISMISSED THE APPEAL BUT ENHANCED THE EXPENSES MADE BY THE AO BYRS.7,17,540/-. HE SIMULTANEOUSLY INITIATED PENALTY PROCEEDINGS AND CONCLUDED THEM BY ORDER DATED 29.3.2016 WITH THE LEVY OF PENALTY AT 100% TAX ON THE ENHANCED AMOUNT. HENCE, THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A) LEVYING THE PENALTY. 3. AT THE OUTSET, IT IS BROUGHT TO OUR NOTICE THAT THE TRIBUNAL IN ASSESSEES APPEAL AGAINST THE QUANTUM ADDITION IN ITA NO.3829/DEL/2016 BY ORDER DATED 19.8.2019 DELETED THE QUANTUM ADDITION AND THEREBY RENDERING PENALTY UNSUSTAINABLE. 4. A COPY OF THE ORDER DATED 19.8.2019 IS PRODUCED AND WE HAVE GONE THROUGH THE SAME. VIDE PARA 9, THE TRIBUNAL GAVE A CATEGORICAL FINDING THAT THE ASSESSEE HAD TO MAINTAIN THE PLANT AND MACHINERY IN RUNNING CONDITION EVEN THOUGH NO SALE TAKES PLACE BY INCURRING SOME EXPENSES AND, THEREFORE, THE QUANTUM ADDITION HAS TO BE DELETED. SINCE THE QUANTUM ADDITION IS DELETED, PENALTY CANNOT BE SUSTAINED. WE, THEREFORE, ALLOW THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN OPEN COURT ON 3 RD SEPTEMBER, 2019. SD/- SD/- ( PRASHANT MAHARISHI) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 RD SEPTEMBER, 2019/VJ 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DRAFT DICTATED 20.8.2019 DRAFT PLACED BEFORE AUTHOR 21.8.2019 APPROVED DRAFT COMES TO THE SR.PS/PS ORDER SIGNED AND PRONOUNCED ON FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. DATE OF UPLOADING ON THE WEBSITE