ACIT, Muzaffarnagar V. Sh. Qamruzama Rana, Muzaffarnagar

ITA 3524/DEL/2011

• Counselvise Citation: 352420114 RSA 2011
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 13-09-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 12-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: ANKIT GUPTA
• Keywords: Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `F: NEW DELHI BEFORE SHRI C.L.SETHI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER I.T. A. NOS.3524, 3525 & 3526/DEL/2011 ASSESSMENT YEARS : 2002-03, 2003-04 & 2004-05 ASSTT. COMMISSIONER OF INCOME-TAX, SHRI QAMRUZAMA RANA CIRCLE-2, MUZAFFARNAGAR. VS. NEW RANA HOUSE, MEERUT ROAD, MUZAFFARNAGAR. PAN: ABTPR6567M (APPELLANT) (RESPONDENT ) APPELLANT BY : SMT. PRATIMA KAUSHIK, SR. DR. RESPONDENT BY : SHRI ANKIT GUPTA, ADVOCATE. O R D E R PER BENCH: IN ALL THESE THREE APPEALS, FILED BY THE REVENUE, T HE REVENUE HAS ASSAILED THE ORDER OF THE LEARNED COMMISSIONER OF I NCOME-TAX (APPEALS) IN DELETING THE PENALTY AMOUNTING TO RS.6,00,000/-, RS .80,000/- AND RS.7,00,000/- LEVIED BY THE ASSESSING OFFICER UNDER SEC. 271(1)(C) OF THE INCOME-TAX ACT, 1961 (THE ACT) FOR THE ASSESSMENT Y EARS 2002-03, 2003-04 AND 2004-05 RESPECTIVELY. 2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IN THE AFORESAID THREE ASSESSMENT YEARS, THE ASSESSING OFFICER MADE THE 2 FOLLOWING ADDITIONS BY TREATING THE AMOUNT TO BE IN THE NATURE OF ACCOMMODATION ENTRIES:- ASSESSMENT YEAR AMOUNT 2002-03 RS.18,000/- 2003-04 RS.2,50,375/- 2004-05 RS.17,54,375/- 3. THE AFORESAID ADDITIONS MADE BY THE AO WERE CONF IRMED BY THE LEARNED CIT(A) AGAINST WHICH, THE ASSESSEE PREFERRE D AN APPEAL BEFORE THE TRIBUNAL. THE ITAT, DELHI BENCH `I, DELHI IN ITA NOS. 1380, 1381 & 2116(DEL)/2009 PERTAINING TO THE ASSESSMENT YEARS 2 002-03, 2004-05 AND 2003-04, DELETED THE ADDITIONS IN THE LIGHT OF THEI R OWN DECISION IN THE CASE OF SHRI SHAHNAWAZ RANA VIDE ORDER DATED 21 ST MAY, 2010. AFTER THE ADDITION MADE BY THE AO WAS CONFIRMED BY THE LEARNE D CIT(A), THE AO LEVIED PENALTY U/S 271(1)(C ) OF THE ACT, AGAINST W HICH, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LEARNED CIT(A). HOWEVER, THE LEARNED CIT(A) VIDE IMPUGNED ORDER DATED 26.04.2011 HAS CANCELLED THE P ENALTY BY OBSERVING THAT THE ITAT VIDE ORDER DATED 21.05.2010, HAS DELE TED THE ADDITIONS MADE BY THE AO AND THERE REMAINS NO ADDITION, ON WHICH A PENALTY U/S 271(1)(C) COULD BE LEVIED. THE LEARNED CIT(A) HELD THAT THER E WAS NO GROUND LEFT FOR IMPOSING PENALTY. AFTER CONSIDERING THE REASON GIV EN BY THE LEARNED CIT(A) IN THE LIGHT OF THE TRIBUNALS ORDER DATED 21 ST MAY, 2010 PASSED IN QUANTUM APPEALS, WHERE THE ADDITIONS MADE BY THE AO STOOD D ELETED, WE DO NOT FIND 3 ANY FORCE IN THE PRESENT APPEALS FILED BY THE REVEN UE. WE, THEREFORE, UPHOLD THE ORDER OF THE LEARNED CIT(A) AND REJECT THE APPE ALS FILED BY THE REVENUE. 4. BEFORE PARTING WITH THESE APPEALS, BE IT MENTION ED HERE THAT THE DEPARTMENT HAS FILED THESE APPEALS FOR THE REASON T HAT THE MATTER IS STILL PENDING FOR DECISION BEFORE THE HONBLE ALLAHABAD H IGH COURT. HOWEVER, THE FACT REMAINS THAT AS ON TODAY, THE ADDITIONS MA DE BY THE AO ARE NO MORE SURVIVE AND THEREFORE, AT THIS STAGE, NO PENALTY U/ S 271(1)(C) OF THE ACT COULD BE IMPOSED. 5. IN THE RESULT, ALL THE THREE APPEALS FILED BY TH E REVENUE ARE DISMISSED. 6. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT I MMEDIATELY AFTER THE HEARING WAS OVER ON 13 TH SEPTEMBER, 2011. SD/- SD/- (B.C. MEENA) (C.L. SETHI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13 TH SEPTEMBER, 2011. COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER *MG DEPUTY REGISTRAR, ITAT.