M/s. D.S. Doors (P) Ltd., New Delhi V. ACIT, Faridabad

ITA 32/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6216 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-03-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 03-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R SONBHADRA
• Section: 32; 37; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. H. S. SIDHU , JM IT A NOS. 32, 34 TO 37/DEL/2014 : ASSTT. YEAR S : 200 1 - 0 2 , 2003 - 04 TO 2006 - 07 M/S D. S. DOORS (P ) LTD. 11/7, MATHURA ROAD, FARIDABAD VS ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 1, FARIDABAD (APPELLANT) (RESPONDENT) PAN NO. A AA CD5805B ASSESSEE BY : SH. SOMIL AGARWAL , CA REVENUE BY : SH. V. R. SONBHADRA , SR. DR DATE OF HEARING : 30 .03 .201 6 DATE OF PRONOUNCE MENT : 30 .03 .201 6 ORDER PER BENCH : THESE APPEALS BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2001 - 02, 2003 - 04 TO 2006 - 07 ARE DIRECTED AGAINST COMMON THE ORDER DATED 29.11.2013 OF LD. CIT(A) ( CE NTRAL ) , GURGAON . 2. COMMON ISSUE IS INVOLVED IN THESE APPEALS WHICH WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. THE ONLY G RIEVANCE OF THE ASSESSEE IN THESE APPEAL S RELATES TO THE SUSTENANCE OF PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HERE INAFTER REFERRED ITA NO S. 32 , 34 TO 37 /DE L/2014 D. S. DOORS PVT. LTD. 2 TO AS THE ACT) AMOUNTING TO RS. 19,77,836, RS.29,27,048/ - , RS.43,74,834/ - , RS.20,93,458/ - AND RS.7,04,362/ - FOR THE ASSESSMENT YEARS 2001 - 02 & 2003 - 04 TO 2006 - 07 RESPECTIVELY. 4 . DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE QUANTUM ADDITION S ON THE BASIS OF WHICH THE AFORESAID PENALTIES WERE LEVIED BY THE AO , HAVE BEEN DELETED BY THE ITAT IN ITA NO S . 1986 & 1988 TO 1991 /DEL/2011 FOR THE ASSESSMENT YEARS 2001 - 02 & 2003 - 04 TO 2006 - 07 VIDE COMMON ORDER DATED 12.03 .2015 (COPY OF THE SAID ORDER WAS FURNISHED WHICH IS PLACED ON RECORD). THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE WAS NOT CON TROVERTED BY THE LD. DR. 5 . AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND MATERIAL ON RECORD, IT IS NOTICED THAT THE ADDITIONS ON THE BASIS OF WHICH THE IMPUGNED PENALTIES U/S 271(1)(C) OF THE ACT AMOUNTING T O RS.19,77,836, RS.29,27,048/ - , RS .4 3,74,834/ - , RS.20,93,458/ ANDRS.7,04,362/ - FOR THE ASSESSMENT YEARS 2001 - 02 & 2003 - 04 TO 2006 - 07 RESPECTIVELY WERE CONFIRMED BY THE LD. CIT(A), HA D BEEN DELETED BY THE ITAT VIDE AFORESAID REFERRED TO ORDER DATED 12.03 .2015. IN THE PRESENT CASE , THE ADDI TION S ON THE BASIS ITA NO S. 32 , 34 TO 37 /DE L/2014 D. S. DOORS PVT. LTD. 3 OF WHICH THE IMPUGNED PENALTIES U/S 271(1)(C) OF THE ACT WERE LEVIED , ARE NOW NOT IN EXISTENCE, T HEREFORE, THE SAID PENALTIES U/S 271(1)(C) OF THE ACT DO NOT SURVIVE, IN VIEW OF THE RATIO LAID DOWN, O N A SIMILAR ISSUE BY THE HON BLE SUPR EME COURT IN THE CASE OF K.C BUILDERS VS ACIT REPORTED AT 265 ITR 562 WHEREIN IT HAS BEEN HELD AS UNDER: WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. 6 . IN VIEW OF THE ABOVE, THE IMPUGNED PENALTIES U/S 271(1)(C) OF THE ACT LEVIED BY THE AO AND SUSTAINED BY THE LD. CIT( A) ARE DELETED. 7 . IN THE RESULT, APPEAL S OF THE ASSESSEE ARE ALLOWED . ( ORDER PRON OUNCED IN THE COURT ON 30 /03 / 2016 ) SD/ - SD/ - ( H. S. SIDHU ) ( N. K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 /03 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR