Sunbeam Technocom Advisors Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 3864/DEL/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74194 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 24-02-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 16-08-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S N BHATIA
• Assessee Lawyers: ANIL SRIVASTAVA
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SHRI A. D. JAIN, JUDICIAL MEMBER ITA NO. 3864/DEL/2011 (ASSESSMENT YEAR-2005-06) SUNBEAM TECHNOCOM ADVISORS PVT. LTD., 414/1, 4 TH FLOOR, DDA COMMERCIAL COMPLEX, DISTT. CENTER, JANAKPURI NEW DELHI-110058 VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-9(1), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAICS5945F ASSESSEE BY: SHRI ANIL SRIVASTAVA REVENUE BY: SHRI S. N. BHATIA DATE OF HEARING 24.2.2014 DATE OF PRONOUNCEMENT 25.2.2014 ORDER PER R. S. SYAL, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 24.5.2011 CONFIRMING THE PE NALTY IMPOSED U/S 271(1)(C) OF THE ACT IN RELATION TO THE ASSESSMENT YEAR 2005-06. 2. IT IS A RECALLED MATTER IN AS MUCH AS THE EARLIE R EX-PARTE ORDER PASSED BY THE TRIBUNAL DISMISSING THE ASSESSEES AP PEAL IN LIMINE ON THE GROUND OF NON-PROSECUTION WAS SUBSEQUENTLY R ECALLED VIDE ITS ORDER DATED 16.8.2013. ITA NO. 3864/DEL/2011 SUNBEAM TECHNOCOM ADVISO RS PVT. LTD. 2 3. FILTERING OUT UNNECESSARY DETAILS, IT IS SE EN THAT THE ASSESSING OFFICER MADE ADDITION U/S 68 FOR A SUM OF RS. 1,08, 50,000/- AND ALSO DISALLOWED EXPENSES AMOUNTING TO RS. 83,441/- CLAIMED AGAINST THE INTEREST INCOME. PENALTY U/S 271(1)(C) AMOUNTING TO RS. 40,00,800/- WAS IMPOSED IN RESPECT OF THE ABOVE TWO ADDITIONS, WHICH CAME TO BE UPHELD IN THE FIRST APPEAL. 4. PURSUANT TO THE ADDITION MADE BY THE ASSESSING O FFICER, THE ASSESSEE FILED QUANTUM APPEAL BEFORE THE TRIBUNAL. VIDE ORDER DATED 30.3.2012 IN ITA NO. 4778/DEL/2009, THE TRIBU NAL HAS RESTORED THE ADDITION U/S 68 TO THE FILE OF A.O. AS REGARDS, THE SECOND ADDITION RELATING TO DISALLOWANCE OF EXPENSE S OF RS. 83,441/- CLAIMED AGAINST INTEREST INCOME OF RS. 1,8 6,537/-, THE TRIBUNAL HAS SUSTAINED THE ADDITION BY OBSERVING TH AT NO EVIDENCE OR DETAILS IN RESPECT OF SUCH EXPENSES WERE FILED E ITHER BEFORE THE A.O OR THE TRIBUNAL. A COPY OF THE TRIBUNAL ORDER I S AVAILABLE ON RECORD. IN VIEW OF THE ORDER PASSED BY THE TRIBUNAL IT BECOMES APPARENT THAT THE ASSESSEE DID NOT FILE ANY EVIDENC E WORTH THE NAME TOWARDS DEDUCTION OF EXPENSES CLAIMED AGAINST AS IN TEREST INCOME EITHER BEFORE THE AUTHORITIES BELOW OR BEFORE US. IN SUCH CIRCUMSTANCES WHEN THERE IS NO EVIDENCE OF HAVING I NCURRED ANY EXPENDITURE FOR WHICH DEDUCTION WAS CLAIMED, WE HOL D THAT THE PENALTY TO THIS EXTENT IS JUSTIFIED. AS REGARDS, TH E OTHER MAJOR ADDITION OF RS. 1.08 CRORE, WE FIND THAT THE TRIBUN AL HAS SET ASIDE ITA NO. 3864/DEL/2011 SUNBEAM TECHNOCOM ADVISO RS PVT. LTD. 3 THE ORDER OF THE AUTHORITIES BELOW ON THIS ISSUE AN D RESTORED THE MATTER TO THE FILE OF A.O FOR DE-NOVO CONSIDERATION. IN SUCH CIRCUMSTANCES, THE PENALTY IN RELATION TO SUCH ADDI TION CANNOT STAND. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER AND RESTORE THIS MATTER TO THE FILE OF THE A.O FOR PASSING CONSEQUEN TIAL ORDER AFTER TAKING A DECISION ON THE MERITS OF ADDITION U/S 68 IN FRESH QUANTUM PROCEEDINGS. OUR VIEW FOR RESTORING THE PENALTY MAT TER TO THE FILE OF THE A.O FINDS SUPPORT FROM THE JUDGMENT OF THE HON BLE SUPREME COURT IN MOHD. MOHATRAM FAROOQUI VS CIT (SUPREME CO URT)- 2010-TIOL-23-SC-IT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.02.2014. SD/- SD/- (A. D. JAIN) (R. S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25/02/2014 *SUBODH* ITA NO. 3864/DEL/2011 SUNBEAM TECHNOCOM ADVISO RS PVT. LTD. 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR DATE INITIAL 1. DRAFT DICTATED ON 24.02.2014 PS 2. DRAFT PLACED BEFORE AUTHOR 24.02.2014 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. *