JMD Ltd., New Delhi V. DCIT, Faridabad

ITA 3206/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5413 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 01-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR TIWARI
• Keywords: Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DLEHI BEFORE SHRI R.S.SYAL, VICE PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER I.T.A. NO.3206/DEL/2016 ASSESSMENT YEAR: 2009-10 M/S JMD LTD., VS DY. COMMISSIONER OF INCO ME-TAX , 6, DEVIKA TOWER, UPPER GROUND FLOOR CENTRAL CIRCLE -II, FARIDABAD. NEHRU PLACE, NEW DELHI. (PAN: AABCJ0244K) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI RAJAN BHATIA RESPONDENT BY: SHRI VIJAY KUMAR TIWARI, SR. DR DATE OF HEARING : 23.04.2018 DATE OF PRONOUNCEMENT : 26 .04.2018 ORDER PER K. NARASIMHA CHARY, JM CHALLENGING THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)- 3, GURGAON (FOR SHORT HEREINAFTER CALLED AS THE LEARNED CIT(A)) IN APPEAL NO.29/CIT(A)(C)/GGN/14-15 DATED 29.03.2016 , ASSESSEE PREFERRED THIS APPEAL. 2 2. BRIEF FACTS OF THE CASE ARE THAT PURSUANT TO THE SEARCH AND SEIZURE OPERATION U/S 132(1) OF THE INCOME-TAX ACT, 1961(THE ACT) C ARRIED OUT AT THE BUSINESS AND RESIDENTIAL PREMISES OF THE PERSONS ASSOCIATED WITH THE JMD GROUP, THE ASSESSEE WAS CALLED UPON TO FILE THE RETURN OF INCOME AND DU RING THE SCRUTINY OF SUCH INCOME AN ADDITION OF RS.10,58,234/- ON ACCOUNT OF TRAVELLING EXPENSES, RS.80 LACS ON ACCOUNT OF MISCELLANEOUS ADDITIONS ON DIFFERENT HEADS AND RS.7,80,37,000/- ON THE BASIS OF ENTRIES RECORDED IN THE LOOSE SLIPS AN D FOUND DURING THE COURSE OF SEARCH. SIMULTANEOUSLY, PENALTY PROCEEDINGS U/S 271A AA WAS INITIATED. BY WAY OF ORDER DATED 29.3.2014, LEARNED AO LEVIED A PENALTY O F RS.79,09,523/-. IN APPEAL, BY WAY OF IMPUGNED ORDER, LEARNED CIT(A) CONFIRMED T HE PENALTY. HENCE, THIS APPEAL BY THE ASSESSEE. 3. AT THE OUTSET, LEARNED AR BROUGHT TO OUR NOTICE THAT IN APPEAL NO.74/DEL/2013, A COORDINATE BENCH OF THIS TRIBUNAL DELETED/CONFIRMED THE DELETION OF ALL THE QUANTUM ADDITIONS. LEARNED DR DOES NOT DISPUTE THIS FACT SUBMITTED BY THE LEARNED AR. A COPY OF THE COMMON O RDER DATED 20.5.2016 IN ITA NO.74/DEL/2013 PREFERRED BY THE REVENUE AND IN ITA N OS.6425 TO 6430/DEL/2013 PREFERRED BY THE ASSESSEE IS PRODUCED. 4. WE HAVE PERUSED THE MATERIAL PAPERS ON RECORD AN D FOUND THAT VIDE PARAGRAPHS 7, 13 AND 23, A COORDINATE BENCH OF THIS TRIBUNAL DELETED THE ADDITION OF RS.10,58,234/-, CONFIRMED THE DELETION OF RS.80 LACS DONE BY THE FIRST APPELLATE AUTHORITY AND DELETED THE ADDITION OF RS.7,80,37,00 0/-. CONSEQUENT TO THIS DATED 20.5.2016 IN ITA NO.74/DEL/2013 PREFERRED BY THE REV ENUE AND IN ITA NOS.6425 TO 6430/DEL/2013 PREFERRED BY THE ASSESSEE, NO ADDITION SURVIVES. SINCE THE 3 QUANTUM IS DELETED, THE PENALTY CANNOT STAND. HENCE , IN THIS SET OF FACTS AND CIRCUMSTANCES, WE FIND THAT PENALTY CANNOT BE SUSTAI NED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ACCORDI NGLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2018. SD/- SD/- (R.S.SYAL) (K. NARSIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED: 26 TH APRIL, 2018 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSTT. REGISTRAR