ACIT, New Delhi V. M/s. Religare Securities Ltd., New Delhi

ITA 2768/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3467 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 04-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUSHMA SINGH
• Assessee Lawyers: ROHIT JAIN
• Keywords: Depreciation
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 2768/DEL/2017 : ASSTT. YEAR : 2010-11 ACIT, CIRCLE 21(2), NEW DELHI VS M/S. RELIGARE SECURITIES LTD. D-3, P3B, DISTRICT CENTRE, SAKET NEW DELHI-110017 (APPELLANT) (RESPONDENT) PAN NO. AAACF1952D ASSESSEE BY : SH. ROHIT JAIN, ADV. REVENUE BY : MS. SUSHMA SINGH, CIT, DR DATE OF HEARING: 05.11.2020 DATE OF PRONOUNCEMENT : 10.11.2020 ORDER PER AMIT SHUKLA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF THE LD. CIT(A)-7, NEW DELHI DATED 27.0 2.2017. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 71,25,588/- LEVY BY THE AO U/S 271(1)(C) OF I.T. ACT, 1961 2. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY U/S 271(1)(C) OF I.T. ACT, 1961 ONLY ON THE GROUND THAT THE QUANTUM ADDITION ON SIMILAR ISSUE HAD BEEN DELETED BY THE HONBLE ITAT IN ANOTHER CASE I.E. RELIGARE COMMODITIES PVT. LTD. WHEREAS THE QUANTUM ADDITION IN THE CASE OF ASSESSEE HAD BEEN UPHELD BY THE LD. CIT(A) HOLDING THAT THE LOSS ON ITA NO. 2768/DEL/2017 RELIGARE SECURITIES LTD. 2 ACCOUNT OF SAR EXPENSES WAS CAPITAL IN NATURE AND NOT ALLOWABLE AS REVENUE EXPENSE. 3. THE AO LEVIED PENALTY OF RS.1,03,58,000/- U/S 27 1(1)(C) OF THE INCOME TAX ACT, 1961. THE PENALTY HAS BEEN LEVIED B Y THE AO OWING TO THE DISALLOWANCES MADE BY THE REVENUE ON ACCOUNT OF DEPRECIATION CLAIMED ON UPS, CLAIM OF PRIOR PERIOD ITEMS AND SAR SCHEME EXPENSES. 4. THESE EXPENSES HAVE BEEN ALLOWED BY THE ORDER OF THE TRIBUNAL IN ITA NO.4644/DEL/2015 VIDE ORDER DATED 09.10.2017. HE NCE, AT THIS JUNCTURE, PENALTY LEVIED U/S 271(1)(C) IS NOT SUSTA INABLE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/11/2020. SD/- SD/- (DR. B. R. R. KUMAR) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10/11/2020 *SUBODH/BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR