Anika International Pvt. Ltd., New Delhi V. DCIT, Circle- 2(2), New Delhi

ITA 3347/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9068 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RAKASH DUBEY SENIOR
• Keywords: Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A : NEW DELHI) BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3347/DEL./2018 (ASSESSMENT YEAR : 2010-11) M/S. ANIKA INTERNATIONAL PRIVATE LTD., VS. DCIT, CI RCLE 2 (2), F-402, 4 TH FLOOR, RAS VILLAS MALL, NEW DELHI. PLOT NO.D 1, DISTRICT CENTRE, NEW DELHI 110 017. (PAN : AABCA5751F) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ABHISHEK MATHUR, CA REVENUE BY : SHRI PRAKASH DUBEY, SENIOR DR DATE OF HEARING : 04.08.2021 DATE OF ORDER : 04.08.2021 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : APPELLANT, M/S. ANIKA INTERNATIONAL PRIVATE LTD. (HEREINAFTER REFERRED TO AS THE ASSESSEE) BY FILING THE PRESEN T APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 05.03.2018 PASSE D BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, NEW DELHI C ONFIRMING THE PENALTY ORDER DATED 28.03.2015 PASSED UNDER SEC TION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) QUA THE ASSESSMENT YEAR 2010-11 ON THE GROUNDS INTER ALIA T HAT :- ITA NO.3347/DEL./2018 2 1. THE LEARNED ASSESSING OFFICER HAS ERRED IN IMP OSING A PENALTY AMOUNTING TO RS.23,49,750/- U/S 271(1)(C) O F INCOME TAX ACT, 1961 ON ACCOUNT OF FURNISHING INACCURATE PARTICULARS. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : ON THE BASIS OF ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE ACT, PENALTY PROCEEDINGS WERE INITIATED U/S 271(1)(C) OF THE ACT FOR CONCEALING THE PARTICULARS OF INCOME. DECLINING THE CONTENTIONS RAISED BY THE ASSESSEE, AO PROCEEDE D TO LEVY THE PENALTY OF RS.23,49,750/- @ 100% OF THE TAX SOUGHT TO BE EV ADED. 3. ASSESSEE CARRIED THE MATTER BY WAY OF APPEAL BEF ORE THE LD. CIT (A) WHO HAS CONFIRMED THE PENALTY BY DISMISSING THE APPEAL. FEELING AGGRIEVED, THE ASSESSEE HAS COME UP BEFORE THE TRIB UNAL BY WAY OF FILING THE PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS RELIED UP ON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN THE LIGHT OF TH E FACTS AND CIRCUMSTANCES OF THE CASE. 5. AT THE VERY OUTSET, IT IS BROUGHT TO OUR NOTICE BY THE LD. AR FOR THE ASSESSEE THAT ADDITIONS MADE IN THE QUANTUM PROCEED INGS HAVE SINCE BEEN DELETED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.2579/DEL/2014 & 2081/DEL/2014 FOR AY 2010-11 VID E ORDER DATED 16.06.2017 AND AS SUCH, PENALTY LEVIED IS NOT SUSTAINABLE AND BROUGHT ON RECORD THE COPY OF THE ORDER OF THE TRIBUNAL DATED 16.06.2017 (SUPRA). ITA NO.3347/DEL./2018 3 6. UNDISPUTEDLY, COORDINATE BENCH OF THE TRIBUNAL V IDE ORDER DATED 16.06.2017 (SUPRA) DELETED THE ADDITIONS. IN THESE CIRCUMSTA NCES, THE PENALTY LEVIED BY THE AO IS NOT SUSTAINABLE IN VIEW OF THE LAW LAID DOWN BY THE HONBLE APEX COURT IN CASE CITED AS K.C. BUILDERS & ANR VS. ACIT 265 ITR 562 (SC) BECAUSE WHEN THE ADDITION MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED HAVE BEEN DELETED THERE REMAINS NO BASIS AT ALL FOR LEVYING THE PENALTY FOR CONCEALMENT AND IN SUCH CASE, NO PENALTY CAN SU RVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. SO, IN VIEW OF THE MATTER, THE PENALTY ORDER PASSED BY THE AO AND CONFIRMED BY THE LD. CIT (A) IS SET ASIDE AND THE APPEAL FILED BY THE ASSESSEE IS HEREBY ALLO WED. ORDER PRONOUNCED IN OPEN COURT ON THIS 4 TH DAY OF AUGUST, 2021 AFTER THE CONCLUSION OF THE VIRTUAL HEARING. SD/- SD/- (O.P. KANT) (KULDIP SIN GH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 4 TH DAY OF AUGUST, 2021 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-1, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.