ITO, New Delhi V. M/s. Zoom Brushes Pvt. Ltd., Delhi

ITA 4231/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5654 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 30-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: SAUBHAGYA AGGARWAL
• Keywords: Deemed dividend

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4231/DEL/2015 ASSESSMENT YEAR: 2009-10 INCOME TAX OFFICER, WARD 27(4), I.P. ESTATE, C.R. BUILDING, NEW DELHI. VS ZOOM BRUSHES PVT. LTD., 1/4990, BALBIR NAGAR EXTN., 60 FT. ROAD, SHAHDRA, DELHI-110032 (PAN: AAACZ2318K) (APPELLANT) (RESPONDENT) APPELLANT BY : MS ASHIMA NEB, SR. DR R ESPONDENT BY : SHRI SAUBHAGYA AGGARWAL, ADV. DATE OF HEARING: 20.06.2018 DATE OF PRONOUN CEMENT : 20.06.2018 ORDER PER SUDHANSHU SRIVASTAVA, J.M.: THIS APPEAL HAS BEEN FILED BY THE DEPARTMENT AGAINS T THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX(A)-22, NEW DELH I DATED 27.04.2015 FOR AY 2009-10 WHEREIN THE LD. COMMISSIONER OF INCOME T AX(A) HAS DELETED PENALTY OF RS. 10,10,000/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED 'THE ACT'). 2. AT THE OUTSET, THE LD. AR APPEARING ON BEHALF OF THE ASSESSEE PLACED ON RECORD A COPY OF ITAT ORDER IN ASSESSEES CASE IN I TA 3636/DEL/2012 FOR ASSESSMENT YEAR 2009-10 AND SUBMITTED THAT VIDE ORD ER DATED 14.08.2014, THE ITA NO.4231/DEL/2015 ASSESSMENT YEAR 2009-10 2 COORDINATE BENCH OF THE TRIBUNAL HAS DELETED QUANTU M ADDITION PERTAINING TO DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT ON WHICH AD DITION THE IMPUGNED PENALTY HAD BEEN IMPOSED. THE LD. AR SUBMITTED THA T IN VIEW OF THE QUANTUM ADDITION HAVING BEEN DELETED BY THE TRIBUNAL, THE P ENALTY WILL NOT SURVIVE ANY WAY. 3. LD. SR. DR PLACED RELIANCE ON THE FINDINGS OF TH E ASSESSING OFFICER BUT COULD NOT NEGATE THE FACT THAT THE QUANTUM ADDITION HAD BEEN DELETED BY THE ITAT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS UNDISPUTED THAT THE QUANTUM APPE AL OF THE ASSESSEE WAS ALLOWED BY THE COORDINATE BENCH OF THIS TRIBUNAL IN ITA 363 6/DEL/2012 WHEREIN VIDE ORDER DATED 14.8.2014, THE QUANTUM ADDITION PERTAIN ING TO DEEMED DIVIDEND U/S 2(22)(E) HAS BEEN DELETED. IT IS UNDISPUTED THAT T HE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT WAS IMPOSED ON THE DEEMED DIVI DEND U/S 2(22)(E) WHICH HAS SINCE BEEN DELETED BY THE COORDINATE BENCH OF T HE ITAT. IN SUCH A SITUATION, THE PENALTY CANNOT SURVIVE IN ANY CASE. WE ALSO NOTE THAT THE DEPARTMENT WOULD NOT HAVE PREFERRED AN APPEAL AGAIN ST THE QUANTUM DELETED BY THE ITAT AS THE TAX INVOLVED WAS LESS THAN THE MONE TARY LIMIT FIXED BY THE CBDT FOR THE DEPARTMENT TO FILE APPEALS BEFORE THE HONBLE HIGH COURT. IN SUCH A SITUATION, WE FIND NO REASON TO INTERFERE WI TH THE FINDINGS OF THE LD. COMMISSIONER OF INCOME TAX(A) AND WE DISMISS THE DE PARTMENTS APPEAL. ITA NO.4231/DEL/2015 ASSESSMENT YEAR 2009-10 3 5. IN THE RESULT, THE APPEAL OF THE DEPARTMENT STAN DS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JUNE, 2018. SD/- SD/- (PRASHANT MAHARISHI) (SUDHANSHU SRIVAST AVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20 TH JUNE, 2018 GS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER ASSISTANT REGISTRAR ITA NO.4231/DEL/2015 ASSESSMENT YEAR 2009-10 4 DATE OF DICTATION 20.06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21.06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 21.06.2018 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 1