SPM Auto Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1935/DEL/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3799 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2005-2006
• Appeal Filed On: 19-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHORE B
• Assessee Lawyers: B L GUPTA T P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : G NEW DELHI) BEFORE SHRI R.P. TOLANI , JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER I.T.A. NO. 1935/DEL./2011 (ASSESSMENT YEAR : 2005-06) SPM AUTO PVT. LTD. VS. ACIT, CIRCLE 9(1), S.S. PODDAR & CO., NEW DELHI. 204-205, ANSAL IMPERIAL TOWER, C-BLOCK, COMMUNITY CENTRE, NARIANA VIHAR, NEW DELHI. (PAN/GIR NO.AABCS4821P) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI B.L. GUPTA, T.P REVENUE BY : SHRI KISHORE B., DR ORDER PER K.D. RAJNAN, AM THIS APPEAL BY THE ASSESSEE FOR ASSESSMENT YEAR 2005 -06 ARISES OUT OF THE ORDER OF CIT(A)-XII, NEW DELHI. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO CONFIRM ING THE PENALTY OF `2,34,427/- IMPOSED U/S 271(1)(C) OF THE I.T. ACT, 19 61. AT THE OUTSET, LD.AR OF THE ASSESSEE SUBMITTED THAT QUANTUM APPEAL IN RELATION TO WHICH THE PENALTY IMPOSED HAS BEEN SET ASIDE BY ITAT, DELHI BEN CH G, NEW DELHI, IN A CONSOLIDATED ORDER IN I.T.A. NO.280/DEL./09 AND 573/ DEL./10 FOR ASSESSMENT YEARS 2005-06 AND 2006-07. HE, THEREFORE, SUBMITTED TH AT THE MATTER MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER. ON THE OTHER HAND, THE LD.DR SUPPORTED THE ORDER OF CIT(A). 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE M ATERIAL AVAILABLE ON RECORD. WE HAVE ALSO GONE THROUGH THE O RDER OF ITAT DATED 27.4.2010 WHEREIN THE ASSESSMENT ORDER FOR ASSESSMENT YEAR 2005-06 HAS BEEN SET ASIDE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO I.T.A. NO.1935/DEL./2011 (A.Y. : 2005-06) 2 EXAMINE THE CASE OF THE ASSESSEE IN THE LIGHT OF DECISI ON IN THE CASE OF S.A. BUILDERS, 288 ITR 01 (SC) WHEREIN IT HAS BEEN HELD TH AT INTEREST FREE ADVANCE CAN BE GIVEN TO SISTER CONCERN/ASSOCIATE CONCERN FOR C OMMERCIAL EXPEDIENCY. SINCE THE ASSESSEE HAD RAISED THE PLEA BEFORE THE ASSE SSING OFFICER NOT WITH FULL DETAILS, THE TRIBUNAL SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTIONS TO DECIDE THE ISSUE AFRESH I N ACCORDANCE WITH DECISION OF HONBLE SUPREME COURT IN THE CASE OF S.A. BUILDERS (SUPRA). SINCE THE QUANTUM ADDITION ON THE BASIS OF WHICH PENALTY IMPOS ED HAS BEEN SET ASIDE, WE FEEL IT PROPER TO SET ASIDE THE APPEAL FILED AGAINST ORDER IMPOSING PENALTY TO THE FILE OF THE ASSESSING OFFICER. IN CASE THE ASSESSING OFFICER AGAIN INITIATES THE PENALTY PROCEEDINGS, HE WILL DECIDE THE MATTER ON MERITS. WE ORDER ACCORDINGLY. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 17.06.2011. SD/- SD/- (R.P. TOLANI) (K.D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: JUNE 17, 2011 SKB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XII, NEW DELHI. 5. DR DEPUTY REGISTRAR