ACIT, New Delhi V. Diwan Chand Satyapal, New Delhi

ITA 2042/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61759 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-07-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V K SINGH
• Assessee Lawyers: R K KAPOOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `B : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.2042/DEL./2012 (ASSESSMENT YEAR : 2007-08) ACIT, CIRCLE 37(1), VS. M/S DIWAN CHAND SATYAPAL, NEW DELHI 10-B, KASTURBA GANDHI MARG, NEW DELHI. (PAN/GIR NO.AACFD3872F) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. KAPOOR, CA REVENUE BY : SHRI K.V.K. SINGH, SR.DR ORDER PER U.B.S. BEDI, JM THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A)- XXVIII, NEW DELHI, DATED 15.02.2011, RELEVANT TO AS SESSMENT YEAR 2007-08, WHEREBY DELETION OF PENALTY U/S 271(1)(C) OF THE I.T. ACT, 1961 OF RS.8,49,379/- ON ACCOUNT OF DEFAULT WITHIN THE MEANING OF SECTION 40(A)(IA) REA D WITH S.194C OF THE ACT, HAS BEEN CHALLENGED. 2. AT THE VERY OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN QUANTUM APPEAL, D BENCH OF THE ITAT, DELHI IN I.T.A. NO.2597/DEL. /2010 FOR ASSESSMENT YEAR 2007-08 VIDE ORDER DATED 05.08.2010 (COPY FILED), ITS OWN C ASE HAS DELETED THE ADDITION/DISALLOWANCE WHILE HOLDING THAT NO TDS WAS REQUIRED TO BE DEDUCTED AT SOURCE ON PAYMENT MADE FOR SPARES SUPPLIED FOR REPLACEMENT AND CIT(A) WHILE CONSIDERING THE I.T.A. NO.2042/DEL./2012 (A.Y. : 2006-07) 2 FACT THAT THE DISALLOWANCE MADE BY THE ASSESSING OF FICER HAS BEEN DELETED, SO PENALTY LEVIED U/S 271(1)(C) OF THE ACT, WITH RESPECT TO SU CH DISALLOWANCE, DOES NOT SURVIVE AND IS LIABLE TO BE DELETED WHICH HAS RIGHTLY BEEN DELETED BY LD.CIT(A). THUS, IT WAS PLEADED FOR CONFIRMATION OF THE IMPUGNED ORDER. 3. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE MATERIAL ON RECORD, WE FIND THAT DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOU NT OF DEFAULT HAVING BEEN COMMITTED WITHIN THE MEANING OF SECTION 40(A)(IA) R EAD WITH S.194C OF THE ACT, HAS SINCE BEEN DELETED BY ITAT VIDE ORDER CITED SUPRA, LD. CI T(A) WHILE CONSIDERING THIS ASPECT HAS DELETED THE PENALTY IMPOSED BY THE ASSESSING OF FICER. SINCE THE DISALLOWANCE ON THE BASIS OF WHICH PENALTY WAS IMPOSED HAS BEEN DEL ETED, PENALTY DOES NOT SURVIVE, SO ACTION OF LD. CIT(A) IS FOUND TO BE PROPER AND JUST IFIED IN THE ABSENCE OF ANY CONTRARY MATERIAL OR ANY HIGHER COURTS ORDER IN THIS REGARD. AS SUCH, WHILE CONCURRING WITH THE FINDING AND CONCLUSION AS DRAWN BY THE CIT(A), WE U PHOLD HIS ORDER AND DISMISS THE APPEAL OF THE REVENUE. 7. AS A RESULT, THE APPEAL FILED BY THE DEPARTMENT GETS DISMISSED. ORDER PRONOUNCED IN OPEN COURT SOON AFTER THE CONC LUSION OF THE HEARING ON 05.07.2012. SD/ SD/- (SHAMIM YAHYA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : JULY 05, 2012 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XXVIII, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT I.T.A. NO.2042/DEL./2012 (A.Y. : 2006-07) 3