ACIT, New Delhi V. M/s. Sanden Vikas India Ltd., New Delhi

ITA 4253/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3048 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI C.M. GARG, JUDICIAL MEMBER ITA NO.4253/DEL/2015 ASSESSMENT YEAR : 2010-11 ACIT, CIRCLE-22(1), NEW DELHI . VS. SANDEN VIKAS INDIA LTD., 12-A, SHIVAJI MARG, NEW DELHI. PAN: AABCS3174M ASSESSEE BY : SHRI K. SAMPATH & SHRI K. RAJKUMAR, ADVOCATES DEPTT. BY : SHRI AMIT JAIN, SR. DR DATE OF HEARING : 11.12.2017 DATE OF PRONOUNCEMENT : 11.12.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 29.04.2015 DELETING THE PENALTY OF RS.23,83,630/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) ITA NO.4253/DEL/2015 2 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED `TH E ACT) IN RELATION TO THE ASSESSMENT YEAR 2010-11. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE CLAIMED DEDUCTION U/S 35(2AB) FOR A SUM OF RS.16,83 ,48,337/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS OBSERVED THAT THE DSIR HAD APPROVED LESSER AMOUNT AND, ACCOR DINGLY, THE AMOUNT OF DEDUCTION WAS REDUCED BY RS.77,14,000 /-. THE ASSESSEE DID NOT PREFER ANY APPEAL AGAINST THE ADDI TION MADE IN QUANTUM PROCEEDINGS. THEREAFTER, THE ASSESSING OFFI CER IMPOSED PENALTY U/S 271(1)(C) OF THE ACT IN RELATIO N TO THIS ADDITION WHICH CAME TO BE DELETED IN THE FIRST APPE AL. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RELEVA NT MATERIAL ON RECORD. IT IS OBSERVED THAT THE PENALTY WAS LEVIED ONLY WITH REFERENCE TO THE AMOUNT OF DEDUCTION CLAI MED BY THE ASSESSEE U/S 35(2AB). SUCH REDUCTION IN THE AMOUNT OF DEDUCTION WAS EFFECTED DUE TO CERTAIN EXPENSES INCU RRED BY THE ASSESSEE, WHICH WERE NOT APPROVED BY THE DSIR. IT IS OBSERVED ITA NO.4253/DEL/2015 3 THAT SUCH EXPENSES WERE GENUINELY INCURRED BY THE A SSESSEE DURING THE PREVIOUS YEAR RELEVANT TO ASSESSMENT YEA R UNDER CONSIDERATION AND THE RETURN WAS FILED ON 27.09.201 0. THE DISAPPROVAL BY THE DSIR FOR SUCH EXPENSES CAME VIDE ORDER DATED 17 TH JUNE, 2011. THUS, IT SHOWS THAT THE EXPENSES WERE GENUINELY INCURRED BY THE ASSESSEE AND THE AMOUNT O F DEDUCTION U/S 35(2AB) GOT LOWERED BECAUSE OF NON-AP PROVAL OF CERTAIN EXPENSES AND, THAT TOO, AFTER THE FILING OF THE RETURN BY THE ASSESSEE. UNDER THESE CIRCUMSTANCES, IT CANNOT BE INFERRED BY ANY STANDARD THAT THE ASSESSEE CONCEALED ITS INC OME OR FURNISHED INACCURATE PARTICULARS OF ITS INCOME. WE , THEREFORE, COUNTENANCE THE VIEW TAKEN BY THE LD. CIT(A). 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.12.2017. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 11 TH DECEMBER, 2017. DK ITA NO.4253/DEL/2015 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.