DCIT, New Delhi V. M/s. Jindal Drilling & Industries Ltd., New Delhi

ITA 3832/DEL/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7067 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 11-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANEESH BHUGANA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 3832/DEL/2010 ASSESSMENT YEAR: 2005-06 DCIT, CIRCLE 4(1), NEW DELHI. VS. JINDAL DRILLING & INDUSTRIES LTD., SUITE NO. 101, 70/B-39, SHIVAJI MARG, NEW DELHI. AAACJ0797L (APPELLANT) (RESPONDENT) APPELLANT BY : MANEESH BHUGANA, DR RESPONDENT BY : VED JAIN, CA O R D E R PER I.P. BANSAL, J.M. THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DI RECTED AGAINST THE ORDER OF CIT(A) DATED 04.06.10 FOR A.Y. 2005-06. GROUNDS OF APPEAL READ AS UNDER: - 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AND CO NTRARY TO FACTS AND LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 31, 51,230/- LEVIED BY THE AO U/S 271(1)(C) OF THE I.T. ACT. 2.1THE LD. CIT(A) HAS ERRED IN IGNORING THE FACT TH AT THE ASSESSEE FURNISHED INACCURATE PARTICULARS OF ITS INCOME AND CONCEALED TAXABLE INCOME BY CLAIMING NON-ALLOWABLE SHORT TERM CAPITAL GAINS AND LOSS/EXPENSES ON ACCOUNT OF UNUSABLE OLD RAW MATERIAL. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER, OR AMEND ANY GROUNDS OF THE APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2 ITA NO. 3832/DEL/2010 2. CONCEALMENT PENALTY OF RS. 31,51,230/- WAS LEVIE D ON THE ADDITIONS OF RS. 86,11,684/-. THE PENALTY HAS BEEN DELETED BY L D. CIT(A) ON THE GROUND THAT ADDITION IN QUANTUM HAS BEEN DELETED BY ITAT VIDE I TS ORDER DATED 31.3.10 IN ITA NO. 1466/DEL/09. THE DEPARTMENT IS AGGRIEVED, HENCE IN APPEAL. 3. AT THE TIME OF HEARING LD. AR HAS PRODUCED BEFOR E US THE COPY OF AFOREMENTIONED ORDER OF THE TRIBUNAL AND A COPY OF THE SAID ORDER WAS ALSO GIVEN TO LD. DR. 4. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. F IRST COMPONENT OF THE ADDITION IS AN AMOUNT OF RS. 25,85,942/- BEING LOSS CLAIMED BY THE ASSESSEE UNDER THE HEAD LOSS OF UNUSABLE OLD RAW MATERIAL AND TRIBUNAL HAS DELETED THIS ADDITION VIDE PARA 16 OF THE AFOREMENTIONED OR DER. 5. THE SECOND COMPONENT OF THE ADDITION IS LOSS ON ACCOUNT OF SALE OF UNITS CLAIMED AT RS. 61,37,871/-. THIS ADDITION HAS ALSO BEEN DELETED BY TRIBUNAL AS PER PARA 9. THEREFORE, BOTH THE ADDITIONS HAVE BE EN DELETED BY THE TRIBUNAL. AS THE ADDITIONS ARE DELETED. THEREFORE, WE SEE NO INFIRMITY IN THE ORDER OF CIT(A) VIDE WHICH HE HAS DELETED THE IMPUGNED PENAL TY. WE DECLINE TO INTERFERE. 3 ITA NO. 3832/DEL/2010 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 15.10.10 ( A.K. GARODIA ) ACCOUNTANT MEMBER (I.P. B ANSAL) JUDICIAL MEMBER DATED: *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR