M/s Stella Industries Ltd., Gurgaon V. ACIT, New Delhi

ITA 4000/DEL/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5506 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 30-12-2013
• Assessment Year: 2002-2003
• Appeal Filed On: 05-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENUKA JAIN GUPTA
• Assessee Lawyers: K R MANJANI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G: NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI I. C. SUDHIR, JUDICIAL MEMBER ITA NO. 4000/DEL/2011 ASSESSMENT YEAR: 2002- 2003 STELLA INDUSTRIES LTD. VS. ACIT 84, AAKASH NEEM MARG, CIRCLE-9(1) DLF PHASE-II NEW DELHI. GURGAON (PAN NO. AAACS3243C) (APPELLANT) (RESP ONDENT) APPELLANT BY : SHRI K.R. MANJ ANI, ADVOCATE RESPONDENT BY : SMT. RENUKA JAIN GUPTA, SR. DR ORDER PER I.C. SUDHIR, JUDICIAL MEMBER THE ASSESSEE HAS QUESTIONED LEVY OF PENALT Y U/S271(1) OF THE ACT IN RESPECT OF 50% OF THE CLAIMED DEPRECIATION, SUSTAIN ED BY THE LD. CIT(A). 2. AT THE OUTSET OF HEARING THE LD AR POINTED OUT THAT THE VERY BASIS I.E. ASSESSMENT ORDER DATED 30.10.2009 REGARDING THE DIS ALLOWANCE OF CLAIMED DEPRECIATION AND ADDITION MADE ON ACCOUNT OF EXCESS OF CLOSING STOCK DO NOT STAND AS ON DATE, AS IN THE MEANTIME THE TRIBUNAL I N THE CASE OF ASSESSEE ITSELF FOR THE SAME ASSESSMENT YEAR IN QUANTUM HAS SET ASIDE THE MATTER TO THE FILE OF THE LD. CIT(A) FOR FRESH CONSIDERATION ON THE ISSUE OF ELIGIBILITY OF ITA NO. 4000/DEL/2011 2 THE CLAIMED DEPRECIATION AND EXCESS OF CLOSING STOC K VIDE ORDER DATED 22.3.2012 IN ITA NO. 1344/D/2005 (ASSTT. YEAR 2002- 03). 3. THE LD. DR ON THE OTHER HAND TRIED TO JUSTI FY THE PENALTY ORDER AS WELL AS FIRST APPELLATE ORDER SUSTAINING THE SAME. 4. CONSIDERING THE ABOVE SUBMISSION WE FIND THAT BOTH THE ISSUES I.E PARTLY DISALLOWANCE OF THE CLAIMED DEPRECIATION AND ADDITION MADE ON ACCOUNT OF EXCESS STOCK WHICH REMAINED THE VERY BAS IS FOR LEVY OF PENALTY U/S 271(1) OF THE ACT ON THE BASIS OF ASSESSMENT O RDER FRAMED ON 30.10.2009, HAVE BEEN SET ASIDE BY THE TRIBUNAL VID E ORDER DATED 30 TH MARCH, 2012 IN ITA NO. 1344/D/2005 (SUPRA) FOR FRE SH CONSIDERATION OF THE LD. CIT(A). WE ARE THUS OF THE VIEW THAT THE PENALT Y IN QUESTION DOES NOT STAND. THE GROUND IS ACCORDINGLY ALLOWED. 5. IN THE RESULT APPEAL IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT O N 24 TH MARCH, 2014. SD/- SD/- (G.D. AGRAWAL) ( I.C. SUDHIR ) VICE PRESIDENT JUDICIAL MEMBER DATED 24 TH MARCH, 2014 VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR, ITAT