Prasad & Co. Pvt. Ltd., V. DCIT, CC-3,

ITA 1956/DEL/2006

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3482 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-07-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 30-05-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRENDRA KUMAR
• Assessee Lawyers: MANOJ GARG
• Keywords: Bad and doubtful debts
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER ITA NO.1956/DEL/2006 ASSESSMENT YEAR : 2000-01 PRASAD & CO. PVT. LTD., W-149, GREATER KAILASH PART I, NEW DELHI 110 018. PAN : AAACP4487H VS. DCIT, CENTRAL CIRCLE-3, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MANOJ GARG, CA REVENUE BY : SHRI AMRENDRA KUMAR, SR. DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DI RECTED AGAINST THE ORDER OF THE CIT (A) DATED 6 TH MARCH, 2006 FOR ASSESSMENT YEAR 2000-01. GROUNDS O F APPEAL READ AS UNDER:- 1. THAT THE FACTS & CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (HEREINAFTER CALLED CIT) ERRED IN UPHOLDING THE DECISION OF DY. COMMISSIONER OF INCOM E TAX IN IMPOSING PENALTY OF RS.63,91,264/- U/S 271(1)(C). 2. THAT THE FACTS & CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (HEREINAFTER CALLED CIT) ERRED IN UPHOLDING THE DECISION OF DY. COMMISSIONER OF INCOM E TAX IN MAKING ASSESSMENT U/S 271(1)(C) WHILE APPEAL IS PEN DING BEFORE INCOME TAX APPELLATE TRIBUNAL. 3. THAT THE APPELLANT CRAVES LIBERTY TO ADD, ALTER , VARY OR AMEND ANY GROUND OF APPEAL. ITA NO.1956/DEL/2006 2 2. AT THE TIME OF HEARING, IT WAS INFORMED BY THE L D. AR OF THE ASSESSEE THAT PENALTY HAS BEEN LEVIED IN RESPECT OF TWO ITEMS OF ADDITIONS; ONE ADDITION MADE ON ACCOUNT OF BAD DEBTS AMOUNTING TO RS.1,62,96,953 /- AND THE OTHER ON ACCOUNT OF PENALTY PAID TO NSE AND DSE OF RS.1,99,836/-. I T WAS SUBMITTED THAT BOTH THE ADDITIONS HAVE BEEN DELETED BY THE TRIBUNAL VIDE IT S ORDER DATED 31 ST MARCH, 2010 IN ITA NO.4665/DEL/2003 VIDE PARA 11 AND 15. HE HA S PLACED BEFORE US THE COPY OF THE SAID ORDER WHICH WAS ALSO GIVEN TO LD. DR. IT WAS SUBMITTED THAT WHEN ADDITIONS ITSELF HAVE BEEN DELETED IN QUANTUM, THE LEVY OF PENALTY CANNOT SURVIVE AND, FOR THIS PURPOSE, LD. AR HAS PLACED RELIANCE O N THE DECISION IN THE CASE OF CIT VS. PARKASH INDUSTRIES LTD. (2010) 322 ITR 622 (P&H). 3. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER OF ASSESSING OFFICER AND CIT (A). 4. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. THE ADDITIONS ON WHICH THE PENALTY HAS BEEN IMPOSED HAVE ALREADY BEEN DELETED BY THE TRIBUNAL VIDE THE AFOREMENTIONED ORDER. THEREFORE, WHEN THE ADDITIONS HAVE BEEN DELETED, TH ERE IS NO QUESTION OF UPHOLDING THE CONCEALMENT PENALTY ON THAT. THEREFO RE, WE DELETE THE PENALTY AND THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 6. THE ORDER PRONOUNCED IN THE OPEN COURT ON 23.07. 2010. SD/- SD/- [K.D. RANJAN] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 23.07.2010. DK ITA NO.1956/DEL/2006 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES