M/s. Phenil Sugars Ltd., Delhi V. DCIT, New Delhi

ITA 3321/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4645 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIRLESH GARG
• Keywords: Notional interest

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. NO.3321/DEL/2015 ASSESSMENT YEAR: 2007-08 M/S. PHENIL SUGARS LTD., (ERSTWHILE GOVIND NAGAR SUGAR LTD.) 207, ESSEL HOUSE, 10 ASAF ALI ROAD, DELHI. V. DCIT, CIRCLE-12(1), NEW DELHI. TAN/PAN: AAACG 4297N (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI KVSR KRISHNA, CA & SHRI NIRLESH GARG, ADV. RESPONDENT BY: SHRI AMIT JAIN, SR.D.R. DATE OF HEARING: 26 07 2018 DATE OF PRONOUNCEMENT: 07 08 2018 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER DATED 13.03.2015, PASSED BY LD. CIT (APPEALS)-IV, NEW DELHI IN RELATION TO PENALTY PROCEEDINGS U/S.271(1)(C) FOR THE ASSESSMENT YEAR 2007-08. THE ASSESSEE IS MAINLY AGGRIEVED BY LEVY OF PENALTY AT RS.11,42, 006/- ON ACCOUNT OF ADDITION MADE AS NOTIONAL INTEREST AND A DVANCES MADE TO THE SUPPLIERS. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT IN THE QUANTUM PROCEEDINGS THE TRIBUNAL VIDE ORDER DATED I.T.A. NO.3321/DEL/2015 2 16.06.2016 IN ITA NO.4466/DEL/2012 HAS DELETED THE DISALLOWANCE OF INTEREST MADE BY THE ASSESSING OFFI CER AND HENCE PENALTY LEVIED ON SUCH INTEREST CANNOT BE SUS TAINED. 3. LEARNED DEPARTMENT REPRESENTATIVE TOO ADMITTED T HAT IN THE QUANTUM PROCEEDINGS THE ADDITION WHICH IS SUBJE CT MATTER OF PENALTY HAS BEEN DELETED. 4. IN VIEW OF THE AFORESAID FACTS THAT IN THE QUANT UM PROCEEDINGS, THE TRIBUNAL HAS DELETED THE DISALLOWA NCE ON ACCOUNT OF INTEREST OF RS.33,92,769/-,THEREFORE, TH E LEVY OF PENALTY ON SUCH DISALLOWANCE HAS NO LEGS TO STAND A ND THE SAME IS HEREBY DELETED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH AUGUST, 2018. SD/- SD/- [PRASHANT MAHARISHI] [AMIT SHUKLA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH AUGUST, 2018 PKK: