DCIT, New Delhi V. M/s. Quadrant EPP Surlon Uttaranchal (P) Ltd., New Delhi

ITA 2081/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86585 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 01-12-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 10-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J P CHANDRAKAR
• Section: 143(3); 115JB

Judgement Text

1 ITA NO. 2081/DEL/2013 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K.: JUDICIAL MEMBER ITA NO. 2081/DEL/2013 A.Y. 2005-06 DCIT, CIRCLE-14(1), VS. QUARDANT EPP SURON UTTARAN CHAL (P) LTD., NEW DELHI. 4, POCKET-1, JASOLA VIHAR, NEW DELHI . PAN: AAACQ 0944 J ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : NONE RESPONDENT BY : SHRI J.P. CHANDRAKAR SR. DR DATE OF HEARING : 01-12-2014 DATE OF ORDER : 09-01-2015. O R D E R PER S.V. MEHROTRA, A.M:- THIS APPEAL, PREFERRED BY THE DEPARTMENT, IS DIR ECTED AGAINST THE ORDER DATED 31-01-2013, PASSED BY THE CIT(APPEALS) -XVII, NEW DELHI IN APPEAL NO. 21/CIT(A)XVII/DEL/2011-12, DELETING THE PENALTY LEVIED BY AO U/S 271(1)(C) OF THE I.T. ACT, 1961, RELATING TO A .Y. 2007-08. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HAD FI LED RETURN DECLARING TOTAL INCOME AT RS. NIL, BUT HAD PAID TAXES U/S 115JB OF THE ACT. THE AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT, DET ERMINING THE TOTAL INCOME AT RS. 15,98,290/-. THE AO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) AND LEVIED PENALTY AT RS. 5,84,855/-. LD. CIT(A) DELETED THE PENALTY BY FOLLOWING THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. NALWA SONS INVESTMENTS LTD. 327 ITR 543, WH EREIN IT HAS BEEN HELD 2 ITA NO. 2081/DEL/2013 THAT NO PENALTY CAN BE LEVIED U/S 271(1)(C) WHEN TH E INCOME U/S 115JB IS HIGHER THAN THE INCOME ASSESSED UNDER NORMAL PROVIS IONS OF THE ACT. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. SR. DR AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND, FROM THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, THAT AFTER GIVING EFFECT TO CIT(A) S ORDER IN THE QUANTUM APPEAL, THE INCOME DETERMINED UNDER THE NORMAL PROV ISIONS OF THE I.T. ACT, WAS ONLY S. 2,90,956/- AND NOT RS. 15,98,285/-. IT IS FURTHER POINTED OUT THAT THE TAX PAYABLE ON THIS INCOME COMES TO RS. 87,287 /- AND, THEREFORE, THE DEPARTMENT SHOULD NOT HAVE FILED THE SECOND APPEAL IN VIEW OF THE CBDT CIRCULAR NO. 3/2011 DATED 9-2-2011, WHEN THE AMOUNT PAYABLE WAS BELOW RS. 3,00,000/-. LD. DR COULD NOT CONTROVERT THE FAC TUAL POSITION AS NARRATED IN THE WRITTEN SUBMISSIONS. THUS, IN ANY VIEW OF TH E MATTER, PENALTY LEVIED U/S 271(1)(C) HAS NO LEGS TO STAND. ACCORDINGLY, DE PARTMENTS APPEAL IS LIABLE TO BE DISMISSED AND WE DO SO. 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 09-01-2015. SD/- SD/- ( GEORGE GEORGE K. ) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09-01-2015. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3 ITA NO. 2081/DEL/2013