ITO, New Delhi V. Shri Umesh Sehgal, New Delhi

ITA 4708/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8150 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 17-02-2010
• Assessment Year: 1998-1999
• Appeal Filed On: 14-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K CHAND
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H DELHI BEFORE SHRI K.G. BANSAL AND SHRI GEORGE MATHAN ITA NO. 4708(DEL)/2009 ASSESSMENT YEAR: 1998-99 INCOME-TAX OFFICER, SH RI UMESH SEHGAL, WARD 35(4), NEW DELHI. VS. 12, HOTEL CONTINENTAL ANNEXE, REGAL BLDG., CONNAUGHT PLACE, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.K. CHAND, S R. DR RESPONDENT BY : NONE ORDER PER K.G. BANSAL : AM THIS APPEAL OF THE REVENUE EMANATES FROM THE O RDER OF THE CIT(APPEALS)-XXVII, NEW DELHI, PASSED ON 15 SEP T., 2009 IN APPEAL NO. 267/01-02 AND IT PERTAINS TO ASSESSMENT Y EAR 1998-99. THE CORRESPONDING PENALTY ORDER WAS FRAMED BY THE D EPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-16(2), NEW DELHI, ON 9.5.20 01 UNDER THE PROVISIONS OF SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 . THE ONLY SUBSTANTIVE GROUND TAKEN BY THE REVENUE IS THAT ON THE FAC TS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN DELETING THE PENALTY OF RS. ITA NO.4708(DEL)/2009 2 6,86,886/-, LEVIED UNDER SECTION 271(1)(C) F OR CONCEALMENT OF INCOME OF RS. 23,79,370/-. 2. IN THE COURSE OF HEARING BEFORE US, THE LD. D R SUBMITTED THAT THE QUANTUM APPEAL IN THIS CASE WAS DECIDED BY TH E TRIBUNAL ON 15.01.2010, IN WHICH THE MATTER WAS RESTORED T O THE FILE OF THE AO FOR MAKING DE-NOVO ASSESSMENT AFTER HEARING THE ASSESSEE. NONE ATTENDED ON BEHALF OF THE ASSESSEE. THE RELEVANT PARAGR APH OF THE ORDER OF THE TRIBUNAL IS REPRODUCED BELOW:- 7. THE GROUNDS OF APPEAL FOR THIS YEAR ARE SIMILAR TO THE GROUNDS OF APPEAL FOR ASSESSMENT YEAR 1997 -98 EXCEPT THAT THE TURNOVER WAS RS. 48,32,54,260/- AND TH E AMOUNT DELETED BY THE LD. CIT(APPEALS) WAS RS. 22,36,36 7/-. IT WAS ALSO THE COMMON CASE OF BOTH THE PARTIES THAT T HE FACTS AND GROUNDS OF THIS AND THE EARLIER YEAR ARE SIMI LAR. IN VIEW OF THIS ADMITTED POSITION, THE ASSESSMENT FOR TH IS YEAR IN REGARD TO ESTIMATION OF PROFIT IS RESTORED TO THE FILE OF THE AO FOR DE-NOVO ASSESSMENT AFTER HEARING THE A SSESSEE AS MENTIONED ABOVE. 2.1 THUS, IT IS CLEAR THAT THE PENALTY ORDER HAS NO LEGS TO STAND ON. THEREFORE, THE LEVY OF PENALTY REQUIRES TO BE DELETED ON THIS GROUND ITSELF ITA NO.4708(DEL)/2009 3 SUBJECT TO THE LIBERTY TO THE AO TO INITIATE PE NALTY PROCEEDINGS AGAIN, IF THOUGHT FIT, IN THE COURSE OF MAKING FRESH ASS ESSMENT. 3. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 1 7TH FEBRUARY, 2010 SOON AFTER THE COMPLETION OF THE HEARING. SD/- SD/- (GEORGE MATHAN) (K.G.BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 17TH FEBRUARY, 2010. SP SATIA COPY OF THE ORDER FORWARDED TO:- 1. SHRI UMESH SEHGAL, NEW DELHI. 2. ITO, WARD 35(4), NEW DELHI. 3. CIT(A) 4. CIT, 5. DR, ITAT, NEW DELHI. ASSISTANT REGISTRA R.