DCIT, New Delhi V. Sh. Prem Kumar Arora, Delhi

ITA 3434/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97186 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 27-08-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 30-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK WADEKAR
• Assessee Lawyers: SANJEEV BINDAL
• Section: 132; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI H.S. SIDHU , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO S . 3433 & 3434 /DEL/201 3 ASSESSMENT YEAR S : 2001 - 02 & 2006 - 07 DCIT, CENTRAL CIRCLE - 25, VS. PREM KUMAR ARORA, ROOM NO. 331, ARA CENTRE, PROP. NANAK ENTERPRISES, JHANDEWALAN EXTN., 440, KATRA ISHWAR BHAWAN, NEW DELHI KHARI BAOLI, DELHI (PAN: AAHPK9790L ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. VIVEK WADEKAR, CIT(DR) RESPONDENT BY : SH. SANJEEV BINDAL, CA DATE OF HEARING: 27.08.2015 DATE OF PRONOUNCEMENT: 09.09.2015 ORDER PER INTURI RAMA RAO, A.M. : THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINST DIFFERENT ORDERS OF CIT(A) , EACH DATED 20.03.2013 PASSED FOR THE ASSESSMENT YEARS 2001 - 02 AND 2006 - 07 RESPECTIVELY. SINCE COMMON GROUNDS OF APPEAL WERE RAISED IN BOTH THE APPEALS, WE PROCEED TO DECIDE THE APP EALS BY A CONSOLIDATED ORDER. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL IN ITA NO. 3433/DEL/2013: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN: 1. THE ORDER OF THE CIT(A) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW & FACT IN DELETING THE PENALTY IMPOSED BY THE AO AMOUNTING TO RS. 11,04,885/ - FOR CONCEALMENT OF INCOME U/S 271(1)(C) OF THE I.T. ACT, 1961. 3. THE APPELLANT CRAVES TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF THE HEARING OF THE APPEAL. 2 2. BRIEF FACT S OF THE CASE ARE THAT A SEARCH & SEIZURE OPERATIONS UNDER SECTION 132 OF THE INCOME - TAX ACT, 1961 (FOR SHORT THE ACT ) WERE CONDUCTED IN THE PREMISES OF TH E APPELLANT ON 22.11.2006. AS A RESULT OF WHICH CERTAIN DOCUMENTS WERE FOUND AND BASED ON THIS INCRIMINATING MATERIAL, THE ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 15 3A OF THE ACT. IN RESPONSE TO WHICH, THE RESPONDENT ASSESSEE FILED RETURN OF INCOME D ISCLOSING UNDISCLOSED INCOME FOR VARIOUS ASSESSMENT YEARS I.E. 2001 - 02 AND 2007 - 08 AND THE ASSESSMENT ORDER WAS PASSED UNDER SECTION 153A. FOR THE ASSESSMENT YEAR 2001 - 02, AN ADDITION OF RS. 35 ,03,118/ - AND FOR THE ASSESSMENT YEAR 2006 - 07 RS. 57,50,853/ - WAS MADE. THIS ADDITION WAS CONFIRMED BY THE CIT(A) AND, HOWEVER, ON FURTHER APPEAL BEFORE THE ITAT, THE ADDITIONS WERE DELETED. WHILE THE MATTER STOOD THUS, THE ASSESSING OFFICER PROCEEDED WITH THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT AND L EVIED THE PENALTY OF RS. 11,04,885/ - FOR THE ASSESSMENT YEAR 2001 - 02 AND RS. 16,25,609/ - FOR THE ASSESSMENT YEAR 2006 - 07. ON APPEAL BEFORE THE CIT(A), THE CIT(A) FOLLOWING THE ORDER OF THE TRIBUNAL DELETING THE PENALTY FOR THE ASSESSMENT YEAR 2004 - 05, ALL OWED THE APPEAL FILED BY THE RESPONDENT ASSESSEE VIDE PARA 4.2 OF HIS ORDER, WHICH READS AS UNDER: 4.2 I HAVE CONSIDERED THE ASSESSMENT AND PENALTY ORDERS, ORDER OF THE HON BLE ITAT AND THE SUBMISSIONS FILED. THE FACTS OF THE CASE ARE THE SAME AS FOR AY 2004 - 05 WHEREIN THE PENALTY IMPOSED U/S 241(1)(C) WAS DELETED BY THE HON BLE ITAT VIDE ITS ORDER DATED 09.03.2012 CANCELLED THE ORDER OF CIT(A) CONFIRMING THE PENALTY AND DELETED THE SAID PENALTY. IT HAS BEEN HELD BY THE HON BLE SUPREME COURT IN UNION OF I NDIA VS. KAMLAKSHI FINANCE CORP. LTD. [AIR 1992 SC 711] AND KHALID AUTOMOBILES VS. UNION OF INDIA [4 SCC (SUPPL.) 653] THAT THE DECISIONS OF THE JURISDICTIONAL HIGH COURT AND THE TRIBUNAL ARE BINDING ON THE INCOME - TAX 3 AUTHORITIES WITHOUT ANY RESERVATION. FOLLOWING THE DECISION OF THE HON BLE ITAT IN THE APPELLANT S OWN CASE, THE GROUND OF APPEAL IS TO BE ALLOWED. 3. SINCE THE CIT(A) FOLLOWED THE DECISION OF THE TRIBUNAL IN ITS OWN CASE FOR THE ASSESSMENT YEAR 2004 - 05 WHERE SIMILAR ADDITIONS WERE MADE, W E DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). HENCE, THE GROUND S OF APPEAL FILED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, BOTH THE APPEAL S ARE DISMISSED. THE DECISION IS PRONOUNCED IN THE OPEN COURT ON 9 T H SEPTEMBER , 2015. S D / - S D / - ( H.S. SIDHU ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 9 T H SEPTEMBER , 2015. RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI