Topaze Overseas Private Ltd., New Delhi V. ITO, New Delhi

ITA 4351/DEL/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65464 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 11-09-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 23-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS MEETA SINGH SENIOR
• Assessee Lawyers: S K SARKAR
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H : NEW DELHI) SHRI RAJPAL YADAV, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.4351/DEL./2010 (ASSESSMENT YEAR : 2001-02) TOPAZE OVERSEAS PVT. LIMITED, VS. ITO, COMPANY WA RD 16 (3), C/O S.K. SARKAR, NEW DELHI. CHARTERED ACCOUNTANT, K 45, KAILASH COLONY, NEW DELHI 110 048. (PAN : AAACT1092L) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. SARKAR, CA REVENUE BY : MRS. MEETA SINGH, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDE R OF CIT (APPEALS)-XIX, NEW DELHI DATED 02.08.2010 FOR THE ASSESSMENT YEAR 2001 -02. THE ONLY GROUND TAKEN BY THE ASSESSEE IS AS UNDER :- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) A ND THE LEARNED INCOME TAX OFFICER HAVE ERRED IN LEVYING A PENALTY OF RS.1,73,035.00 U/S 271(1)(C) OF INCOME-TAX ACT, 1961. 2. THE ASSESSEE COMPANY IS DOING JOB WORK FOR EICHE R LIMITED. THE ASSESSEE ALSO MANUFACTURES TRACTOR PARTS. THE ASSESSEE DECLARED THE INCOME OF RS.1,20,410/- IN THE RETURN FILED ON 25.10.2001. THE ASSESSING OFFICER ESTIMAT ED THE INCOME AT RS.5,57,919/- BY TAKING THE NP AT 3.24% OF THE TOTAL TURNOVER OF RS. 1,72,19,717/- AND PENALTY PROCEEDINGS ITA NO.4351/DEL./2010 2 U/S 271(1)(C) WAS INITIATED. IN THE FIRST QUANTUM APPEAL BEFORE THE CIT (A), THE INCOME WAS REDUCED TO RS.3 LACS. THE ASSESSEE FURTHER WENT IN THE APPEAL BEFORE THE ITAT AND IN ITS ORDER DATED 07.08.2009, THE APPEAL OF THE ASSESSEE WAS ALLOWED. THE INCOME WAS DETERMINED AT RS.1,20,410/- BY ASSESSING OFFICER WH ILE GIVING EFFECT TO THE ITAT ORDER U/S 254 / 143(3) OF THE INCOME-TAX ACT, 1961. THE PENA LTY U/S 271(1)(C) WAS LEVIED ON THE ADDITIONAL INCOME ESTIMATED BY THE ASSESSING OFFICE R. THIS ADDITION HAS BEEN DELETED COMPLETELY BY ITAT. THE CIT (A) DISMISSED THE ASS ESSEES APPEAL AGAINST THE LEVYING OF PENALTY. NOW, THE ASSESSEE IS BEFORE US IN THE APP EAL. 3. AT THE OUTSET OF THE HEARING, THE LEARNED AR SUB MITTED THAT NO ADDITION IN THE QUANTUM SUSTAINS, HENCE THERE CANNOT BE LEVIED ANY PENALTY U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961. LD. DR FAIRLY ACCEPTED THIS FACTUAL POS ITION. 4. AFTER HEARING BOTH THE SIDES, WE HOLD THAT ONCE THERE IS NO ADDITION SUSTAINED IN THE QUANTUM THEN, PENALTY CANNOT BE SUSTAINED FOR CONCE ALMENT U/S 271(1)(C) OF THE ACT. ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE AUTHORI TIES BELOW. THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 14 TH DAY OF SEPTEMBER, 2012. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 14 TH DAY OF SEPTEMBER, 2012/TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XIX, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.