DCIT, New Delhi V. M/s. Creative Travel Pvt. Ltd., New Delhi

ITA 3939/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53056 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 26-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH B BENCH B BENCH B BENCH B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI I.P.BANSAL BEFORE SHRI I.P.BANSAL BEFORE SHRI I.P.BANSAL BEFORE SHRI I.P.BANSAL, JM , JM, JM , JM AND SHRI SHAMIM YAHYA, AM AND SHRI SHAMIM YAHYA, AM AND SHRI SHAMIM YAHYA, AM AND SHRI SHAMIM YAHYA, AM ITA NO. ITA NO. ITA NO. ITA NO.3939 3939 3939 3939/DEL/201 /DEL/201 /DEL/201 /DEL/2011 11 1 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 200 200 200 2006 66 6- -- -07 0707 07 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -3(1), 3(1), 3(1), 3(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S CREATIVE TRAVEL M/S CREATIVE TRAVEL M/S CREATIVE TRAVEL M/S CREATIVE TRAVEL PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 27 2727 27- -- -30, CREATIVE PLAZA, 30, CREATIVE PLAZA, 30, CREATIVE PLAZA, 30, CREATIVE PLAZA, NANAKPURA, MOTI BAGH, NANAKPURA, MOTI BAGH, NANAKPURA, MOTI BAGH, NANAKPURA, MOTI BAGH, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACC0874D. PAN : AAACC0874D. PAN : AAACC0874D. PAN : AAACC0874D. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ROHIT GARG, SR.DR. RESPONDENT BY : SHRI SHAILESH GUPTA. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA, AM PER SHAMIM YAHYA, AM PER SHAMIM YAHYA, AM PER SHAMIM YAHYA, AM : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) DATED 29.6.2011 AND PERTAINS TO THE AY 2006-07. 2. THE ISSUE RAISED IS THAT THE LEARNED CIT(A) HAS ERRED IN DELETING THE PENALTY AMOUNTING TO `26,04,597/- IMPOSED UNDE R SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961. 3. IN THIS CASE, EXPENSES CLAIMED BY THE ASSESSEE O N ACCOUNT OF COMMISSION AND BONUS PAID TO DIRECTORS AMOUNTING TO `77,37,965/- WERE DISALLOWED BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT AND PENALTY WAS IMPOSED IN RESPECT OF TH E AFORESAID DISALLOWANCE U/S 271(1)(C). 4. THE QUANTUM ADDITION IN THIS CASE TRAVELED TO TH E TRIBUNAL AND THE TRIBUNAL, VIDE ORDER DATED 13.5.2011 IN ITA NO. 190/DEL/2010, DELETED THE DISALLOWANCE. CONSIDERING THE FACT THA T THE ADDITION FOR ITA NO.3939/DEL/2011 2 WHICH PENALTY WAS IMPOSED DID NOT STAND, LEARNED CI T(A) DELETED THE PENALTY. AGAINST THE ABOVE ORDER, THE REVENUE IS I N APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. SINCE THE ADDITION HAS BEEN DELETED BY THE TRIBUNAL , THE PENALTY IMPOSED UNDER SECTION 271(1)(C) DOES NOT SURVIVE. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT( A) AND UPHOLD THE SAME. 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 27 TH OCTOBER, 2011. SD/- SD/- (I.P.BANSAL (I.P.BANSAL (I.P.BANSAL (I.P.BANSAL) )) ) (SHAMIM YAHYA (SHAMIM YAHYA (SHAMIM YAHYA (SHAMIM YAHYA) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATED : 27.10.2011 VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR