Alcobex Metals Ltd, V. DCIT Circle 1 (1),

ITA 2006/DEL/2007

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97285 (ITAT-DELHI)
• Duration Of Justice: 8 year(s) 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 20-07-2015
• Assessment Year: 2001-2002
• Appeal Filed On: 23-04-2007
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: P K KAMAL S

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND AND AND AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER I II I TA NO. TA NO. TA NO. TA NO. 2006 2006 2006 2006 /DEL/20 /DEL/20 /DEL/20 /DEL/20 07 0707 07 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 200 200 200 200 1 11 1 - -- - 02 0202 02 M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, 4223/1, ANSARI ROAD, 4223/1, ANSARI ROAD, 4223/1, ANSARI ROAD, 4223/1, ANSARI ROAD, D DD DARYA GANJ, ARYA GANJ, ARYA GANJ, ARYA GANJ, DELHI. DELHI. DELHI. DELHI. PAN : AAACA3098H. PAN : AAACA3098H. PAN : AAACA3098H. PAN : AAACA3098H. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), 1(1), 1(1), 1(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GAUTAM JAIN AND SHRI P.K. KAMAL, ADVOCATES. RESPONDENT BY : SHRI K.K. JAISWAL , SR.DR. DATE OF HEARING : 20.07.2015 20.07.2015 20.07.2015 20.07.2015 DATE OF PRONOUNCEMENT : 18.09.2015 18.09.2015 18.09.2015 18.09.2015 ORDER ORDER ORDER ORDER PER N.K. SAINI, AM PER N.K. SAINI, AM PER N.K. SAINI, AM PER N.K. SAINI, AM : :: : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 16 TH NOVEMBER, 2004 OF LEARNED CIT(A)-IV, NEW DELHI. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL REL ATES TO THE PENALTY U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT) SUSTAINED BY THE LEARNED CIT(A). 3. THIS APPEAL WAS EARLIER DISPOSED OF BY THE ITAT DELH I BENCH A, NEW DELHI VIDE ORDER DATED 23 RD MAY, 2008 AND THE PENALTY WAS ITA-2006/DEL/2007 2 DELETED. THEREAFTER, THE DEPARTMENT PREFERRED AN A PPEAL TO THE HON'BLE JURISDICTIONAL HIGH COURT, WHEREIN, VIDE ORD ER DATED 23 RD SEPTEMBER, 2009, THEIR LORDSHIPS SET ASIDE THE SAID ORDE R OF THE ITAT AND THE MATTER WAS REMANDED BACK BY OBSERVING THAT T HE APPEAL WAS NOT DECIDED ON MERITS BUT ONLY ON THE GROUND THAT TH ERE WAS NO POSITIVE INCOME ASSESSED AND AS NO TAX WAS PAYABLE BY TH E ASSESSEE, THERE COULD NOT BE ANY PENALTY U/S 271(1)(C) OF THE ACT, BY FOLLOWING THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF VIRTUAL SOFTWARE SYSTEMS LTD. VS. CIT, DELHI REPORTED AT 289 ITR 83. T HEIR LORDSHIPS OBSERVED THAT THE AFORESAID JUDGMENT OF HON'BLE SUPRE ME COURT HAS BEEN OVERRULED BY THE HONBLE APEX COURT IN THE CASE OF CIT-I, AHMEDABAD VS. GOLD COIN HEALTH FOOD PVT.LTD. REPORTE D AT 304 ITR 308. NOW, ON THE DIRECTION OF THE HONBLE HIGH COU RT, THIS APPEAL IS FIXED FOR HEARING. 4. LEARNED COUNSEL FOR THE ASSESSEE, AT THE VERY OUTSET, SUBMITTED THAT THE ISSUE RELATING TO QUANTUM ADDITION HAS BEEN SE T ASIDE BY THE ITAT TO THE CIT(A) IN ITA NO.158/DEL/2005, BY OBSERV ING THAT THE ORDER OF LEARNED CIT(A) WAS NOT A SPEAKING ORDER, HE FURNI SHED THE COPY OF THE ORDER DATED 11 TH JANUARY, 2007 AND REQUESTED TO RESTORE THE ISSUE TO THE FILE OF THE LEARNED CIT(A) TO BE DECIDED AFT ER CONSIDERING THE OUTCOME OF THE DECISION ON QUANTUM ADDITION. 5. LEARNED DR HAD NO OBJECTION IF THE ISSUE RELATING TO THE LEVY OF PENALTY U/S 271(1)(C) IS RESTORED TO THE LEARNED CIT(A ). 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE DEEM IT APPROPRIATE TO SET ASIDE THIS ISSUE TO THE FILE OF THE L EARNED CIT(A) TO BE ADJUDICATED AFTER CONSIDERING THE OUTCOME OF THE APP EAL OF THE ASSESSEE ON QUANTUM ADDITION WHICH WAS DIRECTED TO BE DE CIDED AFRESH ITA-2006/DEL/2007 3 BY THE ITAT IN ITA NO.158/DEL/2005 VIDE ORDER DATED 11 TH JANUARY, 2007. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 18.09.2015 . SD/- SD/- (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG ) )) ) (N.K. SAINI (N.K. SAINI (N.K. SAINI (N.K. SAINI ) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER VK. COPY FORWARDED TO: - 1. APPELLANT : M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, M/S ALCOBEX METALS LIMITED, 4223/1, ANSARI ROAD, DARYA GANJ, DELHI. 4223/1, ANSARI ROAD, DARYA GANJ, DELHI. 4223/1, ANSARI ROAD, DARYA GANJ, DELHI. 4223/1, ANSARI ROAD, DARYA GANJ, DELHI. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR