ACIT, New Delhi V. M/s. Russian Technology Centre Pvt. Ltd., New Delhi

ITA 4202/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2767 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 03-07-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 31-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ATIZ AHMAD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. SUDHANSHU SRIVASTAVA, JM IT A NO. 4202/DEL/2014 : ASSTT. YEAR : 200 2 - 03 ITA NO. 4204/DEL/2014 : ASSTT. YEAR : 2005 - 06 ITA NO. 4205/DEL/2014 : ASSTT. YEAR : 2007 - 08 ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 13, NEW DELHI VS M/S RUSSIAN TECHNOLOGY CENTRE PVT. LTD., A - 1/20, SAFDARJUNG ENCLAVE, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A ACCR7102D ASSESSEE BY : SH. SANDEEP GUPTA , ADV., & MS. BHARTI SHARMA , CA REVENUE BY : SH. ATIZ AHMAD, SR. DR DATE OF HEARING : 03.07 .201 7 DATE OF PRONOUNCE MENT : 03 .07 .201 7 ORDER PER N. K. SAINI, AM : THESE APPEALS BY THE DEPARTMENT ARE DIRECTED AGAINST THE SEPARATE ORDERS EACH DATED 15.05.2014 PASSED BY THE LD. CIT(A) - 1, NEW DELHI. 2. ALL THESE APPEALS R ELATE TO THE DELETION OF PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AMOUNTING TO RS. 10,02,088/ - , RS.32,07,926/ - & 42,54,118/ - FOR THE ASSESSMENT YEARS 2002 - 03, 2005 - 06 & 2007 - 08 RESPECTIVELY. ITA NO S. 4202, 4204 & 4205 /DE L/201 4 RUSSIAN TECHNOLOGY CENTRE PVT. LTD. 2 3 . SINCE THE ISSUE INVOLVED IS COMMON AND THE APPEALS WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OF F BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 4. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTS ET STATED THAT THE QUANTUM ADDITIONS ON THE BASIS OF WHICH THE PENALTIES U/S 271(1)(C) OF THE ACT WERE LEVIED BY THE AO , HAVE BEEN DELETED BY THE ITAT VIDE ORDER DATED 12.04.2013 IN ITA NOS. 4932, 5390 & 5391/DEL/2011 FOR THE ASSESSMENT YEARS 2002 - 03, 2005 - 06 & 2007 - 08 RESPECTIVELY. IT WAS FURTHER STATED THAT THE SAID ORDER OF THE ITAT HAS BEEN AFFIRMED BY THE HON BLE JURISDICTIONAL HIGH COURT VIDE ORDER DATED 15.12.2016 (COPY OF THE SAID ORDERS WERE FURNISHED WHICH ARE PLACED ON RECORD). 5 . IN HIS RIVAL S UBMISSIONS THE LD. DR ALTHOUGH SUPPORTED THE PENALTY ORDER S OF THE AO BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE ADDITIONS ON THE BASIS OF WHICH PENALTY U/S 271(1)(C) OF THE ACT WAS LEVIED BY THE AO HAVE BEEN DELETED BY THE ITAT IN ITA NOS. 4932, 5390 & 5391/DEL/2011 FOR ITA NO S. 4202, 4204 & 4205 /DE L/201 4 RUSSIAN TECHNOLOGY CENTRE PVT. LTD. 3 THE ASSESSMENT YEARS 2002 - 03 , 2005 - 06 & 2007 - 08 RESPECTIVELY , VIDE COMMON ORDER DATED 12.04.2013. THE SAID ORDER WAS A SUBJECT MATTER OF THE DEPARTMENTAL APPEAL BEFORE THE HON BLE JURISDICTIONAL HIGH COURT WHEREIN VIDE ORDER DATED 15.12.2016, THE ORDER DATED 12.04.2013 PASSED BY THE TRIBUNAL , HAS BEEN AFFIRMED BY OBSERVING IN PARA 13 AS UNDER: 13. IN VIEW OF THE ABOVE, THIS COURT IS OF THE VIEW THAT THE CONCLUSION OF THE TRIBUNAL IN DELETING THE ADDITIONS MADE CANNOT BE FAULTED. ACCORDINGLY, THE QUESTIONS OF LAW ARE ANSWERED AGAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEE. THE ORDER OF THE TRIBUNAL IS, THEREFORE, AFFIRMED. 7 . NOW IT IS NOT IN DISPUTE THAT THE ADDITIONS ON THE BASIS OF WHICH THE PENALTY U/S 271(1)(C) OF THE ACT WAS LEVIED BY THE AO HAVE BEEN DELETED VIDE ORDER DATE D 12.04.2013 BY THE ITAT AND THE SAID ORDER HAS BEEN AFFIRMED BY THE HON BLE JURISDICTIONAL HIGH COURT. SINCE , THE ADDITIONS/DISALLOWANCES WHICH WERE THE BASIS OF LEVYING THE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT WERE NOT IN EXISTENCE , T HEREFORE, THE P ENALTY U/S 271(1)(C) OF THE ACT LEVIED BY THE AO FOR THE ASSESSMENT YEARS 2002 - 03, 2005 - 06 AND 2007 - 08 WERE NOT JUSTIFIED AND RIGHTLY DELETED BY THE LD. CIT(A). 8 . ON A SIMILAR ISSUE THE HON BLE SUPREME COURT IN THE CASE OF K. C. BUILDERS & OTHERS VS ACI T (2004) 265 ITR 562 HAS HELD AS UNDER: ITA NO S. 4202, 4204 & 4205 /DE L/201 4 RUSSIAN TECHNOLOGY CENTRE PVT. LTD. 4 WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CAS E NO PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. ORDINARILY, PENALTY CANNOT STAND IF THE ASSESSMENT ITSELF IS SET ASIDE. 9 . WE, THEREFORE, BY KEEPING IN VIEW THE RATIO LAID DOWN BY THE HON BLE SUPREME COURT IN THE AFORESAID REFERRED TO ORDER, ARE OF THE CONFIRMED VIEW THAT THE PENALTY U/S 271(1)(C) OF THE ACT LEVIED BY THE AO WERE RIGHTLY DELETED BY THE LD. CIT(A). ACCORDINGLY, W E DO NOT SEE ANY MERIT IN THESE APPEALS OF THE DEPARTMENT. 10 . IN THE RESULT, THE APPEAL S OF THE DEPARTMENT ARE DISMISSED . (O RDER PRONOU NCED IN THE COURT ON 03 /0 7 /2017 ) SD/ - SD/ - (SUDHANSHU SRIVASTAVA ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 03 /07 /2017 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . R ESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR