ITO, WARD- 2(4), NEW DELHI V. PATRONAGE WELFARE & EDUCATIONAL SOCIETY, NEW DELHI

ITA 4493/DEL/2017

• Counselvise Citation: [2020] 109 COUNSELVISE.COM (IT) 9845 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 06-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Set aside
• Section: 271(1)(c); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI G.S. PANNU, VICE PRESIDENT AN D SHRI SUDHANSHU SRIVASTAVA, JUDICIAL ME MBER ITA NO. 4493/DEL/2017 ASSESSMENT YEAR 2006-07 INCOME TAX OFFICER, WARD-2(4), NEW DELHI VS M/S PATRONAGE WELFARE & EDUCATIONAL SOCIETY, 5/73, GUJJU KATRA, SHAHDARA, NEW DELHI. (PAN: AAATP6969R) (APPELLANT) (RESPONDENT) DEPARTMENT BY: SHRI SANDEEP KUMAR, SR. DR RESPONDENT BY: NONE DATE OF HEARING : 24.12.2020 DATE OF PRONOUNCEMENT : 24.12.2020 ORDER PER G.S. PANNU, VICE PRESIDENT THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(A)-36, NEW DELHI DATED 2 8.04.2017 AND PERTAINS TO ASSESSMENT YEAR 2006-07 ON THE FOLLOWING GROUND S OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX(A) ERRED IN DELE TING THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT AMOUNTIN G TO RS. 1,95,28,114/- ON THE GROUND THAT THE QUANTUM APPEAL HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE DESPITE THE FACT THAT THE ASSESSEE ITA 4493/DEL/2017 2 DID NOT COMPLY WITH THE NOTICES SENT DURING THE ASS ESSMENT PROCEEDINGS AND THE ORDER WAS PASSED UNDER SECTION 144 OF THE INCOME TAX ACT. THE DEPARTMENT HAS CHALLENGED THE DECISION OF THE LD. COMMISSIONER OF INCOME TAX(A) ON MERITS IN QUANTUM APPEAL BEFORE THE HONBLE ITAT. 2. WHEN THE CASE WAS FIXED FOR HEARING THROUGH V IDEO CONFERENCING, NONE APPEARED ON BEHALF OF THE ASSESSEE. AT THE TIME OF HEARING, THE LD. DR EXPLAINED THAT THE COMMISSIONER OF INCOME TAX(A) HA S DELETED THE PENALTY ON THE GROUND THAT CORRESPONDING ADDITION MADE IN THE QUANTUM PROCEEDINGS HAS BEEN SET ASIDE. IT HAS BEEN REPORTED BY THE REGIST RY THAT THE APPEAL OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX(A) DATED 28.04.2017 RELATING TO THE QUANTUM PROCEEDINGS HAS ALREADY BEEN DISMISSED BY THE TRIBUNAL VIDE ORDER DATED 10.09.2018 ON ACCOUNT OF LOW TAX EFFECT (WITH REFERENCE TO THE CBDT CIRCULAR NO. 03/2018 DATED 11 TH JULY, 2018). 3. AS A CONSEQUENCE, THE QUANTUM ADDITION CORRESPON DING TO THE INSTANT LEVY OF PENALTY U/S 271(1)(C) OF THE ACT NO LONGER SUBSI STS AND, THEREFORE, THE IMPUGNED ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX(A) DELETING THE PENALTY U/S 271(1)(C) OF THE ACT IS LIABLE TO BE A FFIRMED. WE HOLD SO. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED. ITA 4493/DEL/2017 3 ABOVE DECISION WAS ANNOUNCED IN THE PRESENCE OF THE LD. DR ON CONCLUSION OF VIRTUAL HEARING ON 24 TH DECEMBER, 2020. SD/- SD/- (SUDHANSHU SRIVASTAVA) ( G.S. PANNU ) JUDICIAL MEMBER VICE PRE SIDENT GS COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSISTANT REGISTRAR