M/s. Craftpac Containers Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 2962/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2971 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 12-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: ASHISH GOEL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES B: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA.NO.2962/DEL./2017 ASSESSMENT YEAR 2011-2012 M/S. CRAFTPAC CONTAINERS PVT. LTD., M-259, GREATER KAILASH- II, NEW DELHI 110048 PAN AAACC0305M VS., THE INCOME TAX OFFICER, WARD-3(4), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI ASHISH GOEL, C.A. FOR REVENUE : MS. ASHIMA NEB, SR. D.R. DATE OF HEARING : 0 5 .1 2 .2017 DATE OF PRONOUNCEMENT : 07 .12.2017 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE-COMPANY HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-2, NEW DELHI, D ATED 28 TH FEBRUARY, 2017, FOR A.Y. 2011-2012, CHALLENGING THE LEVY OF P ENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT, 1961. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSM ENT IN THIS CASE WAS COMPLETED UNDER SECTION 143(3) OF THE I.T. ACT ON 28 TH 2 ITA.NO.2962/DEL.2017 M/S. CRAFTPAC CONTAINERS PVT. LTD., NEW DELHI. FEBRUARY, 2014, AT AN INCOME OF RS.1,32,71,231 AFTE R MAKING ADDITION OF RS.1,00,35,866 ON ACCOUNT OF DEEMED DIV IDEND APPLYING THE PROVISIONS OF SECTION 2(22)(E) OF THE I.T. ACT. THE ASSESSEE FILED APPEAL BEFORE LD. CIT(A) CHALLENGING THE ABOVE ADDI TION. THE LD. CIT(A) VIDE ORDER DATED 12 TH OCTOBER, 2016 DELETED THE PROTECTIVE ADDITION OF RS.1,00,35,866 UNDER SECTION 2(22)(E) O F THE I.T. ACT. HOWEVER, THE INCOME OF THE ASSESSEE-COMPANY WAS ENH ANCED BY RS.4 CRORES BY LD. CIT(A) VIDE THE SAME ORDER DATED 12 TH OCTOBER, 2016. PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT WERE ALSO INITIATED IN THE SAME ORDER. THE LD. CIT(A) VIDE IM PUGNED ORDER DATED 28 TH FEBRUARY, 2017 IN THE ABSENCE OF ANY EXPLANATION F ROM THE SIDE OF THE ASSESSEE-COMPANY LEVIED PENALTY UNDER SECTIO N 271(1)(C) OF THE I.T. ACT ON THE ADDITION OF RS.4 CRORES MADE ABOVE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE QUANTUM ORDER OF THE LD. CIT(A) DATED 12 TH OCTOBER, 2016 WHEREBY ADDITION WAS ENHANCED BY RS.4 CRORES WAS SUBJECT MA TTER IN APPEAL BEFORE ITAT B BENCH IN ITA.NO.547/DEL./2017 FOR A .Y. 2011-2012 AND VIDE ORDER DATED 28 TH AUGUST, 2017, THE ADDITION OF RS.4 CRORES HAVE BEEN DELETED BY THE TRIBUNAL. COPY OF THE ORDE R IS PLACED ON 3 ITA.NO.2962/DEL.2017 M/S. CRAFTPAC CONTAINERS PVT. LTD., NEW DELHI. RECORD. HE HAS, THEREFORE, SUBMITTED THAT SINCE ADD ITION HAVE BEEN DELETED, THEREFORE, PENALTY WOULD NOT SURVIVE. 4. THE LD. D.R. DID NOT DISPUTE THAT ADDITION OF R S.4 CRORES ON WHICH PENALTY HAVE BEEN LEVIED, HAS BEEN DELETED BY THE ITAT, DELHI BENCH IN THE CASE OF THE ASSESSEE-COMPANY. 5. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE P ARTIES, WE ARE OF THE VIEW THAT PENALTY UNDER SECTION 271(1)(C ) OF THE ACT WOULD NOT SURVIVE IN THE FACTS AND CIRCUMSTANCES OF THE C ASE. THE PENALTY ORDER LEVIED BY THE LD. CIT(A) ON THE BASIS OF ADDI TION MADE AT RS.4 CRORES WHILE PASSING THE APPELLATE ORDER DATED 12 TH OCTOBER, 2016. THE PENALTY WAS INITIATED ON THE ADDITION OF RS.4 C RORES WHICH HAVE ULTIMATELY BEEN DELETED BY THE TRIBUNAL VIDE ORDER DATED 28 TH AUGUST, 2017. THEREFORE, NOTHING SURVIVE IN FAVOUR OF THE R EVENUE SO AS TO LEVY PENALTY UNDER SECTION 271(1)(C) OF THE ACT. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AN D CANCEL THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 4 ITA.NO.2962/DEL.2017 M/S. CRAFTPAC CONTAINERS PVT. LTD., NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (PRASHANT MAHARISHI) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 07 TH DECEMBER, 2017 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT B BENCH 6. GUARD FILE //BY ORDER// ASST. REGISTRAR : ITAT : DELHI BENCHES : DELHI.