DCIT, New Delhi V. M/s Aditya Landcon Pvt. Ltd., New Delhi

ITA 2829/DEL/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7371 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 17-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Tax effect
• Section: 271(1)(c); 143(3); 68

Judgement Text

1 ITA NO. 2829/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 2829/DEL/20 16 (A.Y 2009-10) DCIT CENTRAL CIRCLE-28 NEW DELHI (APPELLANT) VS ADITYA LANDON PVT. LTD. E-9, PANCHSHEEL PARK, NEW DELHI AACHA0191N (RESPONDENT) APPELLANT BY MS. ASHIMA NEB, SR. DR RESPONDENT BY SH. M. P. RASTOGI, ADV ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 22/02/2016 PASSED BY CIT(A)-29, NEW DELHI FOR ASSESSMENT YEAR 2009-10. 2. AT THE TIME OF HEARING, THE LD. AR SUBMITTED THA T INCOME WAS ASSESSED U/S 153A/143(3) OF THE INCOME TAX ACT, VIDE ASSESSM ENT ORDER DATED 29/3/2014 AT RS. 40,00,000/-. ADDITION WAS MADE ON ACCOUNT OF SALE PROCEEDS OF MALBA OF BUILDING SOLD TO MR. ABDUL RAH MAN WHICH WAS CREDITED TO THE LAND AND BUILDING ACCOUNT. THE ASSESSING OFFIC ER TREATED THE SAME AS CASH CREDIT U/S 68 OF THE ACT AND HAD CREDITED THE FOLLO WING EXTRA DEMANDS:- DATE OF HEARING 07.01.2019 DATE OF PRONOUNCEMENT 15.01.2019 2 ITA NO. 2829/DEL/2016 TAX 12,36,000/- INTEREST U/S 234A 1,11,240/- INTEREST U/S 234A 7,41,600/- TOTAL 20,88,840/- LESS: CIT(A) VIDE ORDER DATED 27.11.2015 TREATED RS . 40,00,000/- AS PART OF THE TRADING RECEIPT AND COMPUTED THE PROFIT @ 8% AT RS. 3,20,000/- AND ALLOWED THE RELIEF. RS. 36,80,000 INCOME FINALLY ASSESSABLE AFTER APPEAL EFFECT. RS. 3,20,000/- 3. THE LD. AR SUBMITTED THAT THE REVENUES APPEAL A GAINST ORDER OF CIT(A) IN QUANTUM HAS ALREADY BEEN DISMISSED BY THE TRIBUN AL VIDE ORDER DATED 2/8/2018 BEING ITA NO. 782/DEL/2016 ON ACCOUNT OF L OW TAX EFFECT. THE LD. AR FURTHER SUBMITTED THAT THE ASSESSING OFFICER LEV IED THE PENALTY U/S 271(1)(C) VIDE ORDER DATED 29/9/2014 BEFORE THE ORDER OF CIT( A) U/S 143(3) THEREBY TREATING THE AMOUNT OF RS. 40 LACS AS CONCEALED INC OME AT RS. 20,88,840/- (WRONGLY ADOPTED THE EXTRA DEMAND CREDITED ON ASSES SMENT AS TAXED ON CONCEALED INCOME, IN-FACT EXTRA TAX WAS ONLY RS. 12 ,36,000/-. THE CIT(A) DELETED THE PENALTY. THE LD. AR SUBMITTED THAT ACT UAL TAX ON THE FINAL INCOME ASSESSED WAS RS.98,880/- FOR THE INCOME OF RS.3,20, 000/-. HOWEVER, AFTER THE CIT(A)S ORDER, THE BASIS OF NATURE OF AMOUNT OF RS . 40 LACS CHANGED AND HENCE THE LEVY OF PENALTY ON OLD BASIS BY ASSESSING OFFIC ER IS NOT IN ACCORDANCE WITH LAW. THE LD. AR RELIED UPON DECISION OF THE HONBL E GUJRAT HIGH COURT IN CASE OF CIT VS. LAKDHIR LAL JI 85 ITR 77. 4. THE LD. DR RELIED UPON THE ORDER OF THE PENALTY BUT COULD NOT CONTROVERT THE FACT THAT THE APPEAL FILED BY THE REVENUE IS HA VING LOW TAX EFFECT AS PER CIRCULAR DATED 03 OF 2018 DATED 11TH JULY, 2018. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE CIT(A) HAS RIGHTLY DELETED THE PENALTY AND THE APPEAL OF THE 3 ITA NO. 2829/DEL/2016 REVENUE IS ALSO COMING UNDER THE PURVIEW OF LOW TAX EFFECT. THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED. 6. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 15/01/2019 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 2829/DEL/2016 DATE OF DICTATION 14.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15 .01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 1 5 .01.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 5 .01.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 5 .01.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK