M/s. Nath Bros. Exim International Ltd., New Delhi V. ACIT, New Delhi

ITA 2673/DEL/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1710 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 09-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAN KANT GARG
• Assessee Lawyers: S K SARKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2, NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 2673/DEL./2014 : ASSTT. YEAR : 2007-08 NATH BROS, EXIM INTERNATIONAL LTD. 102-A, BANGLA SAHIB MARG (REAR SIDE), GOLE MARKET NEW DELHI VS ACIT CIRCLE-13(1) NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAACN0495R APPELLANT BY : SH. S. K.SARKAR, C.A. RESPONDENT BY : SH. RAMAN K ANT GARG, SR. DR DATE OF HEARING : 09.09.2015 DATE OF PRONOUNCEMENT : 9.10.2015 ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-XVI, NE W DELHI DATED 11.03.2014, FOR THE ASSESSMENT YEAR 2007-08, WHERE A PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C), WAS CONFIRMED. 2. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINES S OF MANUFACTURING AND EXPORT OF READYMADE GARMENTS, GAR MENT MADE- UPS AND SILK FABRICS. THE ISSUE ON WHICH PENALTY W AS LEVIED ON THE ASSESSEE U/S 271(1)(C) OF THE ACT IS A DISALLOWANCE BY THE A.O. OF RS. 2,64,784/-, CLAIMED AS DEDUCTION U/S 43(B) OF THE ACT BY THE ASSESSEE. ITA NO.2673/DEL/2014 NATH BROS. EXIM INTERNATIONAL LTD. N.D. 2 3. THE ASSESSEE EXPLAINED THAT IT WAS DUE TO A BON AFIDE ACCOUNTING MISTAKE, THE AMOUNT IN QUESTION WAS CLAI MED BOTH FOR THE ASSESSMENT YEAR 2006-07, AS WELL AS USING THE CURRE NT ASSESSMENT YEAR 2007-08. THE ASSESSING OFFICER AS WELL AS THE CIT(A) CAME TO THE CONCLUSION THAT THE ASSESSEE FURNISHED INACCURA TE PARTICULARS AND THAT THE CLAIM IN THIS YEAR WAS CONCEDED, ONLY AFTE R DETECTED BY THE DEPARTMENT. THEY HELD, THAT PENALTY U/S 271(1)(C) I S RIGHTLY LEVIED. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD SHRI S.K. SARKAR LD. COUNSEL FOR THE ASSESSEE AND SHRI RAMAN KANT GARG, THE LD. SR. DR ON BEHALF OF THE REVENUE. 5. ON HEARING THE RIVAL CONTENTIONS, I AM OF THE CONSIDERED OPINION THAT THE CLAIM OF RS. 2,64,854/- WAS DUE TO A HUMAN ERROR. THE AMOUNT WAS PAID, AFTER THE END OF THE FINANCIAL YEAR 2005-06, BUT BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006-07. THIS WAS CLAIMED AS DEDUCTION DURING THE ASSESSMENT YEAR 2006-07. THE ACCOUNTANT MADE A MISTAKE OF NOT EXCLUDING THIS AMOUNT, FROM THE EXPENDITURE RECORDED IN THE BOOKS FOR THE ASSESSMENT YEAR 2007-08. HENCE, I APPLYING THE RATI O LAID DOWN THE HONBLE SUPREME COURT IN THE CASE OF 322 ITR 158 (S C) IN THE CASE OF RELIANCE PETRO PRODUCTS AND THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE REPORTED IN 328 ITR 44 IN TH E CASE OF CIT VS. ESCORTS FINANCE LTD. (2010) DELETE THE PENALTY LEVIED. ITA NO.2673/DEL/2014 NATH BROS. EXIM INTERNATIONAL LTD. N.D. 3 6. IN THE RESULT THIS APPEAL OF THE ASSESSEE IS AL LOWED. (ORDER PRONOUNCED IN THE COURT ON 9/10/2 015). (J.SUDHAKAR REDDY) A CCOUNTANT MEMBER DATED: 9 /10/2015 *B.RUKHAIYAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGIS TRAR ITA NO.2673/DEL/2014 NATH BROS. EXIM INTERNATIONAL LTD. N.D. 4 DATE INITIAL 1. DRAFT DICTATED ON 1.10.2015 2. DRAFT PLACED BEFORE AUTHOR 1.10.2015 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 09/10/2015 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.