Modern Radio House, New Delhi V. ITO, New Delhi

ITA 2653/DEL/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 9627 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 25-10-2010
• Assessment Year: 1997-1998
• Appeal Filed On: 07-08-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K RAINA
• Assessee Lawyers: R SANTHAN AM
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 2653/DEL/2008 ASSESSMENT YEAR: 1997-98 M/S. MODERN RADIO HOUSE, 24/32, OLD RAJINDER NAGAR, NEW DELHI VS. INCOME TAX OFFICER, WARD 31 (3), NEW DELHI PAN: AAAFM 7352 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R. SANTHAN AM, ADVOCATE RESPONDENT BY : SHRI R.K. RAINA, SR. DR O R D E R PER: C.L. SETHI, J.M. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 30.06.2008 PASSED BY THE LD. CIT(A) IN THE MATTER OF PENALTY LEVIED B Y THE AO U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) FOR THE A.Y. 1 997-98. 2. THE ASSESSEE HAS TAKEN A GROUND THAT THE CIT(A) HAS ERRED IN CONFIRMING THE PENALTY LEVIED BY THE AO. 3. IN THE PRESENT CASE, THE AO HAD LEVIED PENALTY U /S. 271(1)(C) IN RESPECT OF THE FOLLOWING ADDITIONS, WHICH WERE SUST AINED BY THE APPELLATE AUTHORITY:- (A) ADDITION OF RS. 2,57,000/- AS CREDIT IN THE BOO KS OF THE FIRM IN THE NAME OF SMT. VANDANA BAGGA, PARTNER. (B) ADDITION OF RS. 4,77,000/- AS CREDIT IN THE BOO KS OF THE FIRM IN THE NAME OF SHRI HARESH THAKUR, PARTNER. ITA NO. 2653/DEL/2008 PAGE 2 OF 3 (C) ADDITION OF RS. 4,40,000/- AS CREDIT IN THE BOO KS OF THE FIRM IN THE NAME OF SHRI HARESH THAKUR, PARTNER. (D) TRADING ADDITION OF RS. 50,000/-. 4. ON AN APPEAL, THE CIT(A) UPHELD THE PENALTY IN R ESPECT OF THE FOLLOWING AMOUNTS:- I. ADDITION OF RS. 7,34,000/- (RS. 2,57,000/- BEING CREDIT IN THE NAME OF SMT. VANDANA BAGGA AND RS. 4,77,000/ - IN THE NAME OF SHRI HARESH THAKUR) II. RS. 3,90,000/- ON ACCOUNT OF UNEXPLAINED CASH C REDIT. 5. HOWEVER, WITH REGARD TO ADDITION OF RS.50,000/- MADE ON ACCOUNT OF LOW G.P., THE CIT(A) DELETED THE PENALTY BY OBSERVI NG THAT THIS ADDITION IS BASED ON ESTIMATE OF THE AO ONLY, AND SUCH NO PENAL TY IS LEVIABLE. 6. WE HAVE HEARD BOTH THE PARTIES AND HAVE CAREFULL Y GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 7. THE ADDITION OF RS. 2,57,000/- AND RS. 4,77,000/ - BEING THE CREDIT IN THE NAME OF SMT. VANDANA BAGGA AND SHRI HARESH THAK UR, STAND NOW DELETED VIDE OUR ORDER OF EVEN DATE IN ITA NO. 4643 /DEL/2000, WHICH HAS BEEN FRESHLY DISPOSED OF IN PURSUANCE TO THE DIRECT ION OF REMAND GIVEN BY THE HONBLE HIGH COURT TO DECIDE THE MATTER AFRESH. THEREFORE, PENALTY LEVIABLE U/S. 271(1)(C) IN RESPECT OF THE AFORESAID ADDITION DOES NOT SURVIVE. WE, THEREFORE, DIRECT THE AO TO DELETE THE PENALTY. ITA NO. 2653/DEL/2008 PAGE 3 OF 3 8. WITH REGARD TO THE ADDITION OF RS. 3,90,000/- BE ING THE CASH CREDIT IN THE NAME OF SHRI HARESH THAKUR, THE MATTER ALONGWIT H THE ADDITION OF RS. 50,000/- ON ACCOUNT OF ADDITION OF CASH CREDIT IN T HE NAME OF SHRI HARESH THAKUR, HAS BEEN RESTORED BACK BY US VIDE ORDER OF EVEN DATE TO THE FILE OF THE CIT(A), AND, THEREFORE, THE MATTER OF PENALTY I S ALSO BEEN RESTORED TO THE FILE OF THE CIT(A) FOR HIS FRESH ADJUDICATION HAVIN G REGARD TO HIS DECISION WITH REGARD TO THE ADDITION OF RS. 4,40,000/- MADE BY THE AO ON ACCOUNT OF THE CASH CREDIT IN THE NAME OF SHRI HARESH THAKUR. 9. THE PENALTY IN RESPECT OF THE TRADING ADDITION H AS ALREADY BEEN DELETED BY THE CIT(A). HOWEVER, THIS ADDITION OF RS. 50,00 0/- HAS BEEN DELETED BY US VIDE OUR ORDER OF EVEN DATE. 10. IN THE RESULT, THIS APPEAL FILED BY ASSESSEE IS ALLOWED IN THE MANNER AS INDICATED ABOVE. 11. THIS DECISION IS PRONOUNCED IN THE OPEN COURT O N 29 TH JANUARY, 2010. SD/- ( B.P. JAIN) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 29 TH JANUARY, 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR