ITO, New Delhi V. M/s Kushagra Real Estate (P) Ltd., New Delhi

ITA 4596/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8144 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 04-02-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 04-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GARIMA BHAGAT
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 4596/DEL/2009 ASSESSMENT YEAR : 2000-01 INCOME TAX OFFICER WARD 5(3), NEW DELHI. VS. M/S. KUSHAGRA REAL ESTATE (P) LTD., C-1/2003, LAJPAT NAGAR, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. GARIMA BHAGA T, SR. D.R. RESPONDENT BY : NONE. O R D E R PER: C.L. SETHI, J.M. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF LD. CIT(A) DATED 29.09.2009 DELETING THE PENALTY OF RS. 10,20,250/- LEVIED BY T HE A.O. U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) FOR THE ASSESSMENT YEAR 2000-01. 2. WE HAVE HEARD THE LD. D.R. NONE FOR THE ASSESSEE WAS PRESENT. 3. IN THIS CASE, THE AMOUNT OF RS. 26,50,000/- WAS ADDED TO THE ASSESSEES TOTAL INCOME ON ACCOUNT OF UNEXPLAINED SHARE CAPITA L, IN THE ASSESSMENT MADE BY THE A.O. THE A.O. INITIATED PENALTY PROCEEDINGS U/ S 271(1)(C) IN RESPECT OF THE AFORESAID ADDITION OF RS. 26,50,000/- BY OBSERVING THAT ASSESSEE INTRODUCED HIS OWN UNACCOUNTED INCOME IN THE GARB OF SHARE APPLICA TION MONEY. THEREAFTER, THE A.O. LEVIED PENALTY AMOUNTING TO RS. 10,20,250/- U/ S 271(1)(C) BEING THE 100% TAX SOUGHT TO BE EVADED ON THE AFORESAID ADDITION O F RS. 26,50,000/-. ITA NO. 4596/DEL/09 2 4. ON AN APPEAL, THE LD. CIT(A) DELETED THE PENALTY BY OBSERVING THAT THE AFORESAID ADDITION HAS BEEN DELETED BY THE INCOME T AX APPELLATE TRIBUNAL VIDE ITS ORDER DATED 27.02.2009 AND, THEREFORE, THE BASI S FOR IMPOSITION OF PENALTY DOES NOT SURVIVE. 5. IN THE LIGHT OF THE AFORESAID FACTS THAT THE VER Y ADDITION IN RESPECT OF WHICH THE AO HAS LEVIED THE PENALTY U/S 271(1)(C) HAS SIN CE BEEN DELETED BY THE TRIBUNAL IN THE QUANTUM APPEAL, WE ARE INCLINED TO UPHOLD THE ORDER OF LD. CIT(A) IN DELETING THE PENALTY INASMUCH AS THE ADDITION OF RS. 26,50,000/- MADE BY THE A.O. DOES NOT EXIST OR SURVIVE ANY MORE. THE ORDER OF THE LD. CIT(A) IS, THUS, UPHELD. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 7. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT I MMEDIATELY AFTER THE HEARING WAS OVER ON 4 TH FEBRUARY, 2010. SD/- SD/- (SHAMIM YAHYA) ACCOUNTANT MEMBER (C.L. SETHI) JUDICIAL MEMBER DATED: 4 TH FEBRUARY, 2010. MAMTA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR