Mohan Exports (India) Pvt. Ltd, New Delhi V. ACIT, New Delhi

ITA 2019/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5404 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2003-2004
• Appeal Filed On: 07-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R SENAPATI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SH.BHAVNESH SAINI, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER ITA NO.2019/DEL/2015 [ASSESSMENT YEAR: 2003-04] APPLICANT BY SH.NIREN GUPTA, CA RESPONDENT BY SH.S.R.SENAPATI, SR.DR DATE OF HEARING 24.04.2018 DATE OF PRONOUNCEMENT 26 .04.2018 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAI NST THE ORDER OF LD.CIT(A)-6, DELHI DATED 27.01.2015 FOR AY 2003-04, CHALLENGING THE LEVY OF PENALTY U/S 271(1)(C) OF INCOME TAX ACT, 1961 (IN S HORT ACT). 2. IN THIS CASE, THE AO PASSED THE ASSESSMENT ORDER U/S 147/143(3) OF THE ACT VIDE ORDER DATED 18.12.2009. THE AO MADE THE A DDITION OF RS.1,11,52,423/- ON ACCOUNT OF AMOUNT PAID TO ALIA, JORDAN TOWARDS CLEARING & HANDLING CHARGES IN RESPECT OF EXPORTS TO IRAQ. IT IS ALSO STATED THAT LD. CIT(A) ON THIS ISSUE CONFIRMED THE ADDITION TO THE EXTENT OF RS.53,50,446/- OUT OF THE TOTAL ADDITION AND LEVIED THE PENALTY ON THE ADDITION SO RESTRICTED BY LD.CIT(A). THE ASSESSEE, THUS, CHALLENGED THE PENA LTY ORDER BEFORE LD.CIT(A) WHO HAS DISMISSED THE APPEAL OF THE ASSESSEE. 3. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT THE ASSESSEE CHALLENGED THE RE-OPENING OF THE ASSESSMENT AS WELL AS ADDITION ON MERIT BEFORE MOHAN EXPORTS (INDIA) PVT. L TD., MOHAN HOUSE, 8-9, ZAMRUDPUR COMMUNITY CENTRE, KAILASH COLONY EXT., NEW DELHI-110048. PAN-AAACM4168J VS ACIT, CIRCLE-5(1), NEW DELHI. (APPLICANT) (RESPONDENT) ITA NO.2019/DEL/2015 PAGE | 2 ITAT, DELHI BENCH IN ITA NO.3050/DEL/2011 FOR AY 20 03-04 WHICH HAVE BEEN DECIDED BY THE TRIBUNAL VIDE ORDER DATED 13.07.2017 . THE TRIBUNAL UPHELD THE RE-OPENING OF THE ASSESSMENT WHEREAS THE ADDITIONS ON MERIT HAVE BEEN RESTORED TO THE FILE OF THE AO. COPY OF THE JUDGEM ENT IS PLACED ON RECORD. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE PENALTY IS NOT LEVIABLE AT THIS STAGE. THE PENALTY WAS LEVIED BY THE AO ON ACCOUNT OF MAKING THE ABOVE ADDITION IN PART. SINC E THE QUANTUM ADDITION HAS BEEN RESTORED TO THE FILE OF THE AO, THEREFORE, NOT HING SURVIVES IN FAVOUR OF THE REVENUE SO AS TO LEVY THE PENALTY AGAINST THE ASSES SEE AT THIS STAGE. 5. CONSIDERING THE ABOVE, WE SET ASIDE THE ORDERS O F THE AUTHORITIES BELOW AND CANCEL THE PENALTY U/S 271(1)(C) OF THE ACT AT THIS STAGE. HOWEVER, THE AO IS AT LIBERTY TO TAKE ACTION AS PER LAW, IF SO ADVI SED, AFTER PASSING THE ASSESSMENT ORDER AFRESH. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P.KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AMIT KUMAR* DATE:-26.04.2018 COPY FORWARDED TO: 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) CONCERNED 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI