ACIT, New Delhi V. M/s. HCL Comnet Ltd., New Delhi

ITA 405/DEL/2012

• Counselvise Citation: 40520114 RSA 2012
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-08-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 25-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NEERAJ JAIN MS PINKI KAPOOR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : C : NEW DELHI SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NO. 405/DEL/2012 ASSESSMENT YEAR: 2003- 2004 ACIT VS. HCL COMNET LTD. CIRCLE 12(1) 806, SIDDHARTHA, NEW DELHI. 96, NEHRU PLACE, NEW DELHI 110 019 AAACH9667H (APPELLANT) (RES PONDENT) APPELLANT BY : SHRI NEERAJ KUMAR, SR. DR RESPONDENT BY : SHRI NEERAJ JAIN, ADVOCATE MS. PINKI KAPOOR, ADVOCATE ORDER PER I.C. SUDHIR, JUDICIAL MEMBER THE REVENUE HAS QUESTIONED FIRST APPELL ATE ORDER RAISING THE ISSUE AS TO WHETHER LD. CIT(A) WAS JUSTIFIED IN CANCELING THE PENALTY OF RS. 7,83,880/- IMPOSED BY THE AO U/S 271(1)(C) OF THE A CT. 2. WE HAVE HEARD AND CONSIDERED THE ARGUMENT S ADVANCED BY THE PARTIES IN VIEW OF THE ORDERS OF THE AUTHORITIES BE LOW. IN SUPPORT OF THE GROUND LD. DR HAS BASICALLY PLACED RELIANCE ON THE PENALTY ORDER WHEREAS THE LD. AR HAS TRIED TO JUSTIFY THE FIRST APPELLATE ORDER. HE ALSO POINTED OUT ITA NO. 405/DEL/2012 2 THAT THE ADDITION ON WHICH PENALTY WAS LEVIED U/S 2 71(1) AT RS. 7,80,880/- BY THE AO WAS ULTIMATELY DELETED BY THE TRIBUNAL VI DE ITS ORDER DATED 15.5.2009, HENCE THE LD. CIT(A) HAS RIGHTLY DELETED THE PENALTY. 3. WE FIND THAT THE AO HAD MADE DISALLOWANCE ON ACCOUNT OF EXPENDITURE INCURRED ON LEASE HOLD IMPROVEMENT AT R S. 25,10,000/- AND PROVISION FOR WARRANTEE AT RS. 50,40,000/- AGGREGAT ING TO RS. 75,50,000/-. THE LD. CIT(A) DELETED THE DISALLOWANCE OF RS. 50,4 0,000/- MADE ON ACCOUNT OF PROVISION FOR WARRANTEE AND UPHELD THE D ISALLOWANCE OF RS. 25,10,000/- MADE ON ACCOUNT OF EXPENDITURE INCURRED ON LEASE HOLD IMPROVEMENT SUBJECT TO THE DEPRECIATION. ON THE BAS IS OF THE DISALLOWANCE OF RS. 25,10,000/- UPHELD BY THE LD. CIT(A), THE AO INITIATED PENALTY U/S 271(1)(C) AND NOT BEING SATISFIED WITH THE EXPLANAT ION OF THE ASSESSEE , HE LEVIED PENALTY OF RS. 7,83,880/- U/S 271(1)(C) OF T HE ACT. THE LD. CIT(A) HAS DELETED THE PENALTY ON THE GROUND THAT THE TRIBUNAL VIDE ITS ORDER DATED 15.5.2009 HAS DELETED THE ENTIRE ADDITION OF RS. 25 ,10,000/-. THUS BOTH THE ADDITIONS NAMELY DISALLOWANCE ON ACCOUNT OF EXPEND ITURE INCURRED ON LEASE HOLD IMPROVEMENTS AND DISALLOWANCE ON ACCOUNT OF PR OVISION FOR WARRANTY STAND DELETED BY THE FIRST AND SECOND APPELLATE AUT HORITIES. A COPY OF THE ORDER DATED 15.5.2009 PASSED BY THE TRIBUNAL IN THE CASE OF ASSESEE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION HAS BEEN MADE A VAILABLE AT PAGE NO. 61 TO 69 OF THE PAPER BOOK. HAVING GONE THROUGH THE SAID ORDER OF THE TRIBUNAL WE FIND THAT THE ADDITION ON WHICH PENALTY WAS LEVIED BY THE AO ITA NO. 405/DEL/2012 3 HAS BEEN DELETED BY THE TRIBUNAL VIDE ITS ORDER DAT ED 15 TH MAY, 2009. UNDER THESE CIRCUMSTANCES WE DO NOT FIND INFIRMITY IN THE FIRST APPELLATE ORDER IN DELETING THE PENALTY IN QUESTION AS THE VERY BASIS I.E. THE ADDITION, ON WHICH PENALTY WAS LEVIED, HAS BEEN DELETED BY THE TRIBUNA L . THE FIRST APPELLATE ORDER IN THIS REGARD IS THUS UPHELD. GROUND IS ACC ORDINGLY REJECTED. 4. CONSEQUENTLY APPEAL IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 26 TH OCTOBER, 2012. SD/- SD/- (A.N. PAHUJA) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 26.10.2012 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER DEPUTY REGISTRAR, ITAT