M/s. Solid Projects (P) Ltd., New Delhi V. ACIT, New Delhi

ITA 2200/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0136 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 24-03-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 10-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHORE B
• Assessee Lawyers: SUSHANT KUMAR

Judgement Text

ITA NO. 2200/DEL/2010 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 2200/DEL/2010 A.Y. : 2006-07 M/S SOLID PROJECTS (P) LTD. A-13, KAILASH COLONY, NEW DELHI 110 048 (PAN/GIR NO. : AAKCS3596E) VS. ADDL. COMMISSIONER OF INCOME TAX, RANGE-9, NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : MR. SUSHANT KUMAR DEPARTMENT BY : MR. KISHORE B. (D.R.) ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 03/2/2 010 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) HAS ERRED IN CONFIRMING THE PENALTY OF ` 3 ,61,920/- U/S 271D OF THE IT ACT. 3. IN THIS CASE ASSESSING OFFICER NOTED THAT ASSES SEE COMPANY HAD BORROWED A SUM OF ` 64,61,920/- FROM ONE ITS SH ARE HOLDER MS. ITA NO. 2200/DEL/2010 AYESHA SOOD. UPON EXAMINATION OF THE BANK STATEMEN T IN THIS REGARD, ASSESSING OFFICER HELD THAT HE HAS NOTED PART OF LOAN AMOUNTING TO ` 3,61,920/- HAD NOT BEEN CREDITED TO THE ASSESSEE CO MPANY BANK ACCOUNT. ASSESSING OFFICER PROCEEDED TO HOLD THAT THERE IS VIOLATION OF SECTION 269SS AND THEREFORE, HE IMPOSED A PENALTY O F ` 3,61,920/- U/S 271D OF THE IT ACT. 4. DURING THE APPELLATE PROCEEDINGS, IT WAS PLEADED THAT THE SAID PAYMENT WAS MADE THROUGH BANK. IT WAS ALSO CONTENDE D THAT THE SAID AMOUNT WAS DIRECTLY GIVEN BY MS. AYESHA SOOD ON BEHA LF OF THE ASSESSEE COMPANY. FOR THE PURPOSE, IDBI BANK STATEME NT OF MS. AYESHA SOOD WAS PRODUCED WHICH SHOWS DEBIT ENTRY OF ` 3,00,000/- ON 17.12.2005. ASSESSEE ALSO FILED CONFIRMATION FROM SHRI RANBIR SINGH. LD. COMMISSIONER OF INCOME TAX (APPEALS) PROCEEDED T O CONFIRM THE LEVY OF PENALTY. 5. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BEF ORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. WE FIND THAT IT IS A CLAIM OF THE ASSESSEE THAT T HE IMPUGNED AMOUNT WAS PAID DIRECTLY BY MS. AYESHA SOOD ON BEHALF OF T HE ASSESSEE COMPANY. FOR THIS PURPOSE, THERE IS ALSO A CONFIRMA TION OF THE PAYEE I.E. MR. RANBIR SINGH TO THIS EFFECT. UNDER SUCH CIRCUMSTANCES, IN OUR CONSIDERED OPINON, THE PENALTY IS NOT LEVIABLE U/S 271D OF THE IT ACT. ITA NO. 2200/DEL/2010 ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE AUTHOR ITIES BELOW AND DELETE THE LEVY OF PENALTY OF ` 3,61,920/-. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/03/2011, U PON CONCLUSION OF HEARING. SD/- SD/- [C.L. SETHI] [C.L. SETHI] [C.L. SETHI] [C.L. SETHI] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 24/03/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES