M/s. Somdatt Landmark Hotels & Recreations Pvt. Ltd., Kolkata V. DCIT, Kanpur

ITA 2227/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2856 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH DUBEY
• Assessee Lawyers: ROHIT ROHATGI
• Section: 271(1)(c); 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI G BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI AMIT SHUKLA, JUDICIAL MEMB ER ITA NO. 2227/DEL/2017 [A.Y 2012-13] M/S SOMDATT LANDMARK HOTELS & VS. THE DY. C.I.T RECREATIONS PVT LTD CENTRAL CIRCLE - 2 D 20, SITE NO. 2 NEW DELHI PANKHI INDUSTRIAL AREA KANPUR PAN: AAOCS 1821 N [APPELLANT] [RESP ONDENT] ASSESSEE BY : SHRI ROHIT ROHATGI, CA REVENUE BY : SHRI PRAKASH DUBEY, SR. DR DATE OF HEARING : 17.06.2021 DATE OF PRONOUNCEMENT : 17.06.2021 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A)-27, NEW DELHI DATED 08.02.2017 PERTAINING T O A.Y 2012-13. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMED THE PENALTY OF RS. 1,54,500 LEVIED U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'T HE ACT']. 3. THE ROOTS FOR LEVY OF PENALTY LIE IN THE ASSESSM ENT ORDER DATED 30.03.2014 FRAMED U/S 143(3) OF THE ACT. WHILE COMP LETING ASSESSMENT, THE ASSESSING OFFICER, INTER ALIA, MADE ADDITION OF RS. 5 LAKHS BEING ADHOC DISALLOWANCE OF EXPENSES STATING THAT THE SAME WERE UNVERIFIED. 4. WE HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE OR DERS OF THE AUTHORITIES BELOW. THE UNDISPUTED FACT IS THAT WHIL E COMPLETING ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A SSESSING OFFICER HAS MADE DISALLOWANCE OF RS. 5 LAKHS OBSERVING THAT CON SUMABLES ARE MOSTLY IN CASH AND SOME OF THE EXPENSES REMAINED UN VERIFIED. IN OUR CONSIDERED VIEW, SINCE THE DISALLOWANCE IS ON ADHOC BASIS AND ON THE BASIS OF GENERAL OBSERVATION THAT THE EXPENSES WERE INCURRED IN CASH AND REMAINED UNVERIFIABLE, WE ARE OF THE OPINION TH AT SINCE THE ASSESSEE IS A HOTELIER AND SINCE CERTAIN EXPENSES O N CONSUMABLES NEED TO BE INCURRED IN CASH, SUPPORTED BY INTERNAL VOUCH ERS, WOULD NOT 3 TANTAMOUNT TO FILING OF INACCURATE PARTICULARS OF I NCOME OR CONCEALMENT OF INCOME. 5. WE DO NOT FIND ANY MERIT IN THE PENALTY SO LEVIE D BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A). WE, ACCOR DINGLY DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY OF RS. 1,54 ,500/-. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO. 2227/DEL/2017 IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT IN THE PR ESENCE OF BOTH THE REPRESENTATIVES ON 17.06.2021. SD/- SD/- [ AMIT SHUKLA ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 TH JUNE, 2021 VL/ 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER