The State Trading Corporation of India Ltd., New Delhi V. DCIT, New Delhi

ITA 2974/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3156 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 25-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R SENAPATI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO.2974/DEL/2016 ASSESSMENT YEAR : 2009-10 THE STATE TRADING CORPORATION OF INDIA LTD., JAWAHAR VYAPAR BHAWAN, TOLSTOY MARG, NEW DELHI. VS. DCIT, CIRCLE- 25(1), NEW DELHI. PAN : AAACT0102F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KAMAL KISHAN JETALEY, ADV. SHRI RISHABH JETALEY, ADV. DEPARTMENT BY : SHRI S.R. SENAPATI, SR.DR DATE OF HEARING : 22-02-2018 DATE OF PRONOUNCEMENT : 27-02-2018 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 31.03.2016 OF THE CIT(A)- 33, NEW DELHI RELATING TO ASSESSMENT YEAR 2009-10. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THEY ALL RELATE TO THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE PENALTY LEVIED U/S 271(1)(C) OF THE I.T. ACT, 1961 BY THE ASSESSING OF FICER ON ACCOUNT OF DISALLOWANCE OF PROVISION FOR LEAVE ENCASHMENT. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET F ILED A COPY OF THE ORDER OF THE TRIBUNAL AND SUBMITTED THAT THE ISSUE HAS BEEN RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION AS PER PAR A 7 OF THE ORDER. THEREFORE, 2 ITA NO.2974/DEL/2016 THE VERY BASIS OF LEVY OF PENALTY DOES NOT SURVIVE AND THE PENALTY SO LEVIED SHOULD BE DELETED. 4. THE LD. DR WHILE CONCEDING THE ABOVE ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT A DIRECTION MAY BE GIVEN TO THE ASSESSING OFFICER TO INITIATE THE PENALTY PROCEEDINGS AFTER THE ORDER IS PASSED IN THE LIGHT OF THE DECISION OF THE TRIBUNAL. 5. AFTER HEARING BOTH THE SIDES, WE FIND THE PENALT Y HAS BEEN SUSTAINED BY THE LD. CIT(A) ON THE ADDITION MADE ON ACCOUNT OF D ISALLOWANCE OF PROVISION FOR LEAVE ENCASHMENT. FROM THE ORDER OF THE TRIBUNAL I N ASSESSEES OWN CASE IN ITA NO.2383/DEL/2013 ORDER DATED 21.01.2016, WE FIN D THE TRIBUNAL AT PARA 7 OF THE ORDER HAS RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION OF THE ISSUE. THEREFORE, PENALTY AT P RESENT DOES NOT SURVIVE AND THE SAME IS LIABLE TO BE DELETED. HOWEVER, THE ASSESSI NG OFFICER IS AT LIBERTY TO INITIATE PENALTY PROCEEDINGS AFTER COMPLETION OF TH E ASSESSMENT ON THE BASIS OF THE DIRECTION OF THE TRIBUNAL. IN VIEW OF THE ABOV E, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH FEBRUARY, 2018. SD/- SD/- (BEENA A. PILLAI) (R. K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27-02-2018. SUJEET 3 ITA NO.2974/DEL/2016 COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI