ITO, New Delhi V. M/s. Standing Conference of Public Enterprises (SCOPE), New Delhi

ITA 4669/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5637 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2003-2004
• Appeal Filed On: 10-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT & SHRI I.P. BANSAL, JUDICIAL MEMBER ITA NO. 4669/DEL/2009 ASSESSMENT YEAR: 2003-04 INCOME TAX OFFICER, WARD 31(1), NEW DELHI. VS. M/S STANDING CONFERENCE OF PUBLIC ENTERPRISES (SCOPE), 7 LODI ROAD, CORE NO. 8, NEW DELHI. PAN NO. AAPFS7390N (APPELLANT) (RESPONDENT) APPELLANT BY : INDERJEET SINGH, DR RESPONDENT BY: RANO JAIN, CA O R D E R PER I.P. BANSAL, J.M. THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRE CTED AGAINST THE ORDER OF CIT(A) DATED 15 TH SEPTEMBER, 2009 FOR A.Y. 2003-04. GROUNDS OF APPEAL READ AS UNDER: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN RESTRICTING THE AMOUNT OF PENALTY U/S 271(1)(C) UPTO THE COMPONENT OF EARNING FROM NON-MEMBERS BY HOLDING THAT INTEREST I NCOME AND RENTAL INCOME OTHER THAN THAT RECEIVED FROM NON-MEMBERS AS EXEMPT ON THE BASIS OF PRINCIPAL OF MUTUALITY AS HELD BY THE HON BLE ITAT IN ITS ORDER ITAT NO. 5015/D/07, DT. 31.03.08 IN THE CASE OF ASS ESSEES QUANTUM APPEAL AGAINST WHICH THE REVENUE IS IN APPEAL BEFOR E THE HONBLE HIGH COURT. 2. THE DEPARTMENT IN ITS APPEAL IS AGGRIEVED BY THE ORDER OF CIT(A) VIDE WHICH HE HAS DELETED THE PENALTY IN RESPECT OF INCOME EARNED BY THE ASSESSEE FROM MEMBERS IN RESPECT OF INTEREST AND RE NT. THE CIT(A) HAS ITA NO. 4669/D/09 2 UPHELD THE PENALTY WITH RESPECT TO THE INCOME RELAT ING TO NON-MEMBERS OF RENT AND INTEREST ON THE GROUND THAT SUCH ADDITION WAS UPHELD. THE DEPARTMENT IS AGITATING THE DELETION OF PENALTY ON THE GROUND THAT THE ORDER OF ITAT IS SUBJECT MATTER OF APPEAL BEFORE HO NBLE HIGH COURT. 3. DURING THE COURSE OF HEARING IT WAS BROUGHT TO O UR NOTICE FIRSTLY THAT PENALTY IN RESPECT OF ADDITION MADE ON ACCOUNT OF EARNING OF INCOME OF INTEREST AND RENT WITH RESPECT TO NON-MEMBERS HA S BEEN DELETED BY THE TRIBUNAL FOR THE IMPUGNED ASSESSMENT YEAR VIDE ITS ORDER DT. 22.01.2010 IN ITA NO. 4305/D/09. A COPY OF SUCH OR DER WAS PLACED ON OUR RECORD AND A COPY WAS ALSO GIVEN TO LD. DR. SE CONDLY, IT WAS BROUGHT TO OUR NOTICE THAT HONBLE JURISDICTION HIG H COURT HAS UPHELD THE ORDER OF THE TRIBUNAL FOR THE IMPUGNED ASSESSMENT Y EAR VIDE WHICH IT WAS HELD THAT THE INCOME OF THE ASSESSEE OF RENT AN D INTEREST FROM MEMBERS WAS EXEMPTED ON THE PRINCIPAL OF MUTUALITY. THIS IS AN ORDER DATED 25 TH SEPTEMBER, 2009 IN ITA NO. 1409/2008 IN THE CASE O F ASSESSEE, A COPY OF WHICH WAS ALSO GIVEN AND ARE PL ACED ON PAGES 23 TO 29 OF THE PAPER BOOK. IN THIS MANNER IT WAS CONTEN DED THAT SINCE THE ORDER OF THE TRIBUNAL ON QUANTUM HAS BEEN UPHELD BY THE HONBLE HIGH COURT AND EVEN THE CONCEALMENT PENALTY HAS BEEN DEL ETED BY TRIBUNAL ON THE OTHER PART OF THE INCOME WHICH IS EARNED BY THE ASSESSEE FROM NON-MEMBERS, THEREFORE, THE DEPARTMENTAL APPEAL IS DEVOID ON MERITS AND SHOULD BE DISMISSED. ITA NO. 4669/D/09 3 4. ON THE OTHER HAND, LD. DR RELIED ON THE ORDER OF AO. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO N IN THE LIGHT OF MATERIAL PLACED BEFORE US. SINCE THE DEPARTMENT IS AGITATING THE DELETION OF PENALTY ONLY ON THE GROUND THAT THE ORDER OF THE TRIBUNAL VIDE WHICH THE NECESSARY RELIEF WAS GIVEN HAS BEEN CHALLENGED BY DEPARTMENT BEFORE HONBLE HIGH COURT AND HONBLE HIGH COURT HA S CONFIRMED THE ORDER OF TRIBUNAL, THEREFORE, WE FIND NO SUBSTANCE IN THE APPEAL FILED BY THE DEPARTMENT. 6. IN THE CIRCUMSTANCES, THE APPEAL FILED BY THE RE VENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2010. (G.E. VEERABHADRAPPA) VICE PRESIDENT (I.P. BANSAL) JUDICIAL MEMBER DATED: 19 TH FEBRUARY, 2010. KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR ITA NO. 4669/D/09 4