M/s. Intercontinental Consultants and Technocrats Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 2361/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4171 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAVEEN DWIVEDI
• Keywords: Double taxation relief

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO.2361/DEL/2015 ASSESSMENT YEAR: 2007-08 INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD., A-8, GREEN PARK, NEW DELHI. V. DY. CIT, CIRCLE-74(1), NEW DELHI. TAN/PAN: AAACI 1674B (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI PRAVEEN DWIVEDI, CA RESPONDENT BY: SHRI AMIT JAIN, SR.D.R. DATE OF HEARING: 27 06 2018 DATE OF PRONOUNCEMENT: 08 2018 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER DATED 20.02.2015, PASSED BY THE CIT(APPEALS)-XIII, NEW DELHI IN RELATION TO PENALTY PROCEEDINGS INITIATED U/S.271C FOR THE ASSESSMENT YEAR 2006-07. THE ASSESSEE IS MAINLY AGGRIEVED BY LEVY OF PENALTY U/S . 271C OF RS.16,57,266/-. 2 . AT THE OUTSET, THE LEARNED AUTHORIZED REPRESENTATI VE SUBMITTED THAT THE ISSUE INVOLVED, REGARDING LEVY O F PENALTY U/S.271C OF THE INCOME-TAX ACT, 1961 (FOR SHORT TH E ACT) IN THIS APPEAL, HAS ALREADY BEEN DECIDED IN ASSESSEES OWN CASE VIDE ORDER DATED 07.08.2018, IN I.T.A. NO.2362/DEL/ 2015 FOR ASSESSMENT YEAR 2007-08 AND IN THE PRESENT APPEAL S AME I.T.A. NO.2361/DEL/2015 2 FACTS AND CIRCUMSTANCES ARE PERMEATING, THEREFORE S AME SHOULD BE FOLLOWED. 3 . ON THE OTHER HAND, THE LEARNED DR COULD NOT CONTRO VERT THE AVERMENTS MADE BY THE LEARNED AUTHORIZED REPRESENTATIVE. 4 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GONE THROUGH THE MATERIAL ON RECORD. WE FIND THAT THE TR IBUNAL VIDE ORDER DATED 07.08.2018 IN ITA 2362/DEL/2015 (SUPRA) , HAS ALREADY DECIDED THE SIMILAR ISSUE IN DISPUTE, IN FA VOUR OF THE ASSESSEE. THE RELEVANT FINDINGS OF THE TRIBUNAL ARE REPRODUCED AS UNDER: 5. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL O F THE IMPUGNED ORDER, IT IS SEEN THAT ON THE PAYMENT OF P ROFESSIONAL CHARGES, THERE WAS A SHORT DEDUCTION OF TDS. THE EX PLANATION OF THE ASSESSEE WAS THAT IT WAS UNDER A BONA FIDE BELIEF T HAT TDS WAS NOT DEDUCTIBLE AS THE RELEVANT PORTIONS OF THE PAYMENT WERE COVERED UNDER THE DTAA. FURTHER, THE TDS HAS ALREADY BEEN D EPOSITED VOLUNTARILY AND SUO MOTO IMMEDIATELY ON THE DEFAULT BEING POINTED OUT AND MUCH BEFORE THE DEFAULT COMING TO THE KNOWL EDGE OF THE DEPARTMENT ON 11.02.2008 UNDER THE SURVEY PROCEEDIN GS. THUS, IF THE ASSESSEE HAS VOLUNTARILY SUO MOTO DEPOSITED THE TAX MUCH BEFORE THE DEFAULT COMING INTO NOTICE AND AT THE TI ME OF PAYMENT IF THERE WAS A BONA FIDE BELIEF THAT THE PAYMENTS ARE COVERED UNDER DTAA IT CANNOT BE HELD THAT THERE WAS ANY CONTUMACI OUS CONDUCT ON THE PART OF THE ASSESSEE FOR NOT DEDUCTING / SHO RT DEDUCTING THE TDS. ACCORDINGLY, WE HOLD THAT UNDER THESE FACTS, T HE ASSESSEE HAD REASONABLE AND BONA FIDE REASON FOR NON-DEDUCTION O F TDS ON PAYMENTS MADE TO NONRESIDENTS AND WILL FALL IN THE REALM OF BONA FIDE BELIEF AS CONTEMPLATED U/S.273B; AND ACCORDING LY, THE PENALTY I.T.A. NO.2361/DEL/2015 3 LEVIED BY THE ASSESSING OFFICER AND CONFIRMED BY TH E LD. CIT (A) IS DIRECTED TO BE DELETED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. 5 . RESPECTFULLY FOLLOWING THE FINDINGS OF THE TRIBUNA L IN ASSESSEES OWN CASE PASSED FOR ASSESSMENT YEAR 2007 -08 (SUPRA), WE DELETE THE PENALTY LEVIED BY THE ASSESS ING OFFICER. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH AUGUST, 2018. SD/- SD/- [L.P. SAHU] [AMIT SHUKLA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH AUGUST, 2018 PKK: