ITO, New Delhi V. M/s. Precision Agencies Pvt. Ltd., New Delhi

ITA 2710/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3318 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 02-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K JIWANI
• Keywords: Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.2710/DEL./2017 ASSESSMENT YEAR 2002-2003 THE INCOME TAX OFFICER, WARD 20(1), ROOM NO.218, 2 ND FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI110 002. VS. M/S. PRECISION AGENCIES PRIVATE LIMITED, 3/39, ROOP NAGAR, DELHI-110007 PAN AAACP5858Q (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI V.K. JIWANI, SR.D.R. FOR ASSESSEE : SHRI SHAILESH GUPTA, ADVOCATE DATE OF HEARING : 05.03.2018 DATE OF PRONOUNCEMENT : 08 .03.2018 ORDER THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-36, NEW DELHI, DATED 28 TH FEBRUARY, 2017, FOR THE A.Y. 2002-2003, CHALLENGING THE DELET ION OF PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT, 19 61. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT INFORMA TION IN THIS CASE WAS RECEIVED FROM DIRECTORATE OF INVESTIG ATION, NEW DELHI THAT THE ASSESSEE COMPANY WAS ENGAGED IN PROV IDING 2 ITA.NO.2710/DEL./2017 M/S. PRECISION AGENCIES PRIVATE LIMITED, DELHI ACCOMMODATION BOGUS ENTRIES DURING THE PERIOD UNDER CONSIDERATION. SUBSEQUENTLY ASSESSMENT WAS REOPENED . AS PER THE ASSESSMENT ORDER, THE ASSESSEE HAD INTRODUCED UNACCOUNTED AMOUNT OF RS.40,00,000/- IN THE BANK AC COUNT NO. 01000043145 WITH SBI, SHAKTI NAGAR, DELHI TO PR OVIDE ACCOMMODATION ENTRIES TO VARIOUS BENEFICIARIES. THE A.O. CONSIDERED THE ISSUE AND MADE THE ADDITION OF RS.40 LAKHS. THE LD. CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSE E AND CONFIRMED THE ADDITION OF RS.36 LAKHS. THE A.O. LEV IED THE PENALTY VIDE SEPARATE ORDER. 2.1. IT WAS SUBMITTED BEFORE LD. CIT(A) WHEN BANK ACCOUNT IS IN THE NAME OF THE ASSESSEE-COMPANY, THE LD. CIT(A) DID NOT CONSIDER THE ISSUE IN PROPER PERSPECTIVE ON QUANTUM. IT WAS SUBMITTED THAT SIMILAR ADDITION WAS MADE IN A.Y S. 2000- 2001 AND 2001-2002 ON WHICH PENALTY HAS BEEN DROPPE D BY THE A.O. THE LD. CIT(A) NOTED THAT SIMILAR INFORMAT ION WAS RECEIVED FOR OTHER YEARS AND IN THREE YEARS, QUANTU M APPEALS ARE PENDING BEFORE ITAT. THE A.O. DROPPED THE PENAL TY 3 ITA.NO.2710/DEL./2017 M/S. PRECISION AGENCIES PRIVATE LIMITED, DELHI PROCEEDINGS ON THE SAME FACTS FOR A.YS. 2000-2001 A ND 2001- 2002. THE LD. CIT(A) ACCEPTED THE EXPLANATION OF AS SESSEE AND ACCORDINGLY, DELETED THE PENALTY. ] 3. THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OU TSET, SUBMITTED THAT THE APPEAL OF THE ASSESSEE-COMPANY F OR ASSESSMENT YEAR UNDER APPEAL IN ITA.NO.7/DEL./2014 ALONG WITH OTHER APPEALS OF THE ASSESSEE-COMPANY AND THE DEPARTMENT, HAVE BEEN DECIDED BY ITAT, F-BENCH, VID E ORDER DATED 05 TH FEBRUARY, 2018 AND ALL THE FIVE APPEALS HAVE BEEN RESTORED TO THE FILE OF A.O. TO CARRY-OUT NECESSARY ENQUIRIES AND THEN DECIDE ABOUT THE TAXABILITY OF THE SUM INVOLVE D IN THE BANK ACCOUNT OF THE ASSESSEE-COMPANY WITH STATE BANK OF INDIA OPENED AND OPERATED BY SHRI PRADEEP JINDAL IN THE N AME OF THE ASSESSEE-COMPANY. COPY OF THE ORDER IS PLACED ON RE CORD. 4. THE LD. D.R. DID NOT DISPUTE THE ORDER OF THE TRIBUNAL. 5. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT OF THE ORDER OF THE TRIBUNAL DATED 05 TH FEBRUARY, 2018 ABOVE, I AM OF 4 ITA.NO.2710/DEL./2017 M/S. PRECISION AGENCIES PRIVATE LIMITED, DELHI THE VIEW THAT PENALTY IS NOT LEVIABLE AT THIS STAGE . IT IS AN ADMITTED FACT THAT FOR EARLIER YEARS, THE A.O. DROP PED THE PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT ON IDENTICAL ISSUE. FURTHER, ON THE QUANTUM, THE TRIBU NAL FOR ASSESSMENT YEAR UNDER APPEAL AS WELL AS FOR OTHER Y EARS, RESTORED THE MATTER BACK TO THE FILE OF THE A.O. TO DECIDE THE TAXABILITY OF THE AMOUNT INVOLVED IN THE BANK ACCOU NT MAINTAINED WITH STATE BANK OF INDIA. THEREFORE, THE RE IS NOTHING ON RECORD TO JUSTIFY LEVY OF THE PENALTY BE CAUSE THE MATTERS ARE STILL PENDING BEFORE A.O. IN THIS VIEW OF THE MATTER, PENALTY IS NOT LEVIABLE AT THIS STAGE. THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL AND THE SAME IS LIABLE TO BE DI SMISSED. HOWEVER, I CLARIFY THAT THE A.O. AFTER PASSING THE ASSESSMENT ORDER, MAY TAKE NECESSARY ACTION IF SO ADVISED, IN ACCORDANCE WITH LAW AGAINST THE ASSESSEE AS PER LAW. WITH THES E OBSERVATIONS, THE DEPARTMENTAL APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. 5 ITA.NO.2710/DEL./2017 M/S. PRECISION AGENCIES PRIVATE LIMITED, DELHI ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 08 TH MARCH, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.