M/s CHL Ltd., New Delhi V. DCIT, New Delhi

ITA 327/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6924 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 19-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB SR DR
• Section: 271(1)(c)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI ! ! ! ! $ $$ $ $ $$ $ $ $$ $ $ $$ $ %&% %&% %&% %&% ' ' ' ' BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER & DR. B.R.R.KUMAR, ACCOUNTANT MEMBER ! ! ! !$ $$ $ / ITA NO:- 327/DEL/2017 (( (( (( (( / ASSESSMENT YEAR: 2009-10 M/S. CHL LTD., HOTEL CROWN PLAZA, NEW FRIENDS COLONY, NEW DELHI-110025. PAN-AAACC2587M .......... )* /APPELLANT VS DCIT, CIRCLE-6(1), NEW DELHI. . +,)* / RESPONDENT )*-.% / APPELLANT BY : SH.SATISH KHOSLA, ADV. +,)*-.% / RESPONDENT BY : MS. ASHIMA NEB, SR.DR - /0& / DATE OF HEARING : 07.10.2019 12-/0& / DATE OF PRONOUNCEMENT: 16.10.2019 % % % % / ORDER PER SUSHMA CHOWLA, JM: THE APPEAL FILED BY ASSESSEE IS AGAINST ORDER OF C IT(A)-2, NEW DELHI, DATED 28.10.2016 RELATING TO ASSESSMENT YEAR 2009-10 AGAINST PENALTY LEVIED U/S SECTION 271(1)(C) OF THE INCOME -TAX ACT, 1961 (IN SHORT THE ACT). ITA NO:327/DEL/2017 ASSESSMENT YEAR: 2009-10 PAGE | 2 2. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST THE LEVY OF PENALTY FOR CONCEALMENT U/S 271(1)(C) OF THE ACT. 3. BRIEFLY THE FACTS AND CIRCUMSTANCES OF THE CASE ARE THAT THE ASSESSEE HAS FURNISHED INCOME DECLARING TOTAL INCOM E OF RS.23.43 CRORES. THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY AND VARIOUS ADDITIONS WERE MADE IN THE HANDS OF THE ASSESSEE. THE ASSESS ING OFFICER WHILE MAKING THE DIFFERENT ADDITIONS IN THE HANDS OF THE ASSESSEE RECORDED SATISFACTION UNDER EACH ADDITION MADE IN THE HANDS OF THE ASSESSEE FOR INITIATING PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT, HOLDING THAT THE ASSESSEE TO HAVE CONCEALED THE INCOME/FILED INACCUR ATE PARTICULARS. WHILE LEVYING THE PENALTY, THE ASSESSING OFFICER HE LD THE ASSESSEE TO HAVE CONCEALED THE PARTICULARS OF INCOME AND FURNISHED I NACCURATE PARTICULARS OF INCOME AND THE ASSESSEE WAS HELD LIABLE TO PENAL TY U/S 271(1)(C) OF THE ACT IN RESPECT OF ADDITIONS TOTALING TO RS.21,09,08 0/-. HENCE, PENALTY OF RS.7,16,876/- WAS LEVIED UPON THE ASSESSEE U/S 271( 1)(C). 4. THE LIMITED ISSUE WHICH ARISES IN THE PRESENT AP PEAL IS WHETHER WHERE THE ASSESSING OFFICER HAS FAILED TO RECORD TH E SATISFACTION IN THE ASSESSMENT ORDER AS TO WHICH LIMB OF SECTION 271(1) (C) OF THE ACT HAS NOT BEEN FULFILLED BY THE ASSESSEE, IS THE LEVY OF PENA LTY TO BE UPHELD IN THE CASE OF THE ASSESSEE. 5. PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT AR E ATTRACTED WHERE THE ASSESSEE HAD EITHER CONCEALED ITS INCOME OR FUR NISHED INACCURATE PARTICULARS OF INCOME. FOR DEFAULT OF EITHER OF TH E LIMBS OF THE SAID ITA NO:327/DEL/2017 ASSESSMENT YEAR: 2009-10 PAGE | 3 SECTION, THE ASSESSEE CAN BE HELD LIABLE FOR LEVY O F PENALTY OF CONCEALMENT. HOWEVER, THE ASSESSING OFFICER WHILE INITIATING PEN ALTY PROCEEDINGS HAS TO COME TO A FINDING IN THIS REGARD. IN THE PRESENT C ASE, WE FIND THAT THE ASSESSING OFFICER HAS FAILED TO RECORD THE SATISFAC TION AS TO WHICH LIMB OF THE SAID SECTION HAS NOT BEEN FULFILLED BY THE ASSE SSEE. IN THE ABSENCE OF THE SAME I.E. WHERE THE ASSESSEE HAS NOT BEEN GIVEN ANY SHOW CAUSE NOTICE AS TO WHICH LIMB OF SECTION 271(1)(C) OF THE ACT HAS NOT BEEN FULFILLED BY THE ASSESSEE, THE LEVY OF THE PENALTY IN THIS CIRCUMSTANCES IS NOT JUSTIFIED. IN THIS REGARD, WE FIND SUPPORT FRO M THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. SHRI SAMSON PERINCHERY (2017) 392 ITR 4 (BOM) . APPLYING THE SAID RATIO, WE DELETE THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH DAY OF OCTOBER, 2019. SD/- SD/- (B.R.R.KUMAR) (SUSHMA CH OWLA) %& %& %& %& /ACCOUNTANT MEMBER /JUDICIAL MEMBER / ! DATED : 16 TH OCTOBER, 2019 . * AMIT KUMAR * ITA NO:327/DEL/2017 ASSESSMENT YEAR: 2009-10 PAGE | 4 %-+/45%4/6 COPY OF THE ORDER IS FORWARDED TO : 1. )* / THE APPELLANT; 2. +,)* / THE RESPONDENT; 3. 7 8 9 / THE CIT(A) 4. 4:;+/ / DR, ITAT, DELHI 5. ;(< 6 GUARD FILE. % % % % / BY ORDER , ,4/+/ // TRUE COPY // >?@ , ASSISTANT REGISTRAR, ITAT, DELHI