Singhal Strips Ltd., New Delhi V. DCIT, New Delhi

ITA 4881/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8076 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-03-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 30-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Keywords: Set aside

Judgement Text

I.T.A. NO.4881 /DEL/09 1/2 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO.4881 /DEL/2009 ASSESSMENT YEAR : 2003-04 M/S SINGHAL STRIPS LTD., DCIT, 440/1, BHOLA NATH NAGAR, CIRCLE-8 (1), SHADARA. V. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPAK BANSAL, C.A. RESPONDENT BY : SHRI J.P. JANGID, SR. DR. ORDER PER A.K. GARODIA, AM: THIS IS AN ASSESSEE'S APPEAL DIRECTED AGAINST THE O RDER OF LD CIT(A)-XI, NEW DELHI DATED 28.10.2009 FOR ASSESSMENT YEAR 2003 -04. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING PENALTY IMPOSED BY THE ASSESSING OFFICER OF RS.67,68,283/- U/S 271(1) (C ) OF THE INCOME TAX ACT, 1961. 3. IT WAS SUBMITTED BY THE LD AR OF THE ASSESSEE TH AT IN QUANTUM APPEAL OF THE ASSESSEE, THE MATTER HAS BEEN SET ASIDE BY THE TRIBUNAL TO THE FILE OF THE ASSESSING OFFICER AND IN SUPPORT OF THIS CONTENTION , HE SUBMITTED A COPY OF THE TRIBUNAL DECISION IN QUANTUM APPEAL OF THE ASSESSEE FOR THE SAME ASSESSMENT YEAR AS PER I.T.A. NO. 3940/DEL/2007 DATED 23 RD APRIL, 2007 . IT WAS SUBMITTED THAT IN QUANTUM APPEAL, THE ASSESSEE HAS NOT PRESSE D BEFORE THE TRIBUNAL ONE GROUND OF APPEAL REGARDING ADDITION OF RS.5,000/- A ND FOR THE REMAINING ISSUES, THE MATTER HAS BEEN RESTORED BACK BY THE TRIBUNAL T O THE FILE OF THE ASSESSING OFFICER. IT IS SUBMITTED THAT SINCE THE QUANTUM AD DITION DOES NOT SURVIVE, THE IMPUGNED PENALTY ORDER ALSO CANNOT SURVIVE. . I.T.A. NO.4881/DEL/09 2/2 4. LD DR OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GON E THROUGH THE MATERIAL AVAILABLE ON RECORD AND WE FIND THAT IN THE QUANTUM APPEAL OF THE ASSESSEE FOR THE SAME ASSESSMENT YEAR, EXCEPT ADDITION FOR RS.5, 000/-, FOR ALL OTHER ADDITIONS, THE MATTER HAS BEEN RESTORED BACK BY THE TRIBUNAL T O THE FILE OF THE ASSESSING OFFICER AND HENCE THE PRESENT PENALTY CANNOT SURVIV E BECAUSE THE QUANTUM ADDITION HAS ALREADY BEEN SET ASIDE BY THE TRIBUNAL TO THE FILE OF THE ASSESSING OFFICER FOR A FRESH DECISION. IF THE ADDITION IS M ADE AGAIN BY THE ASSESSING OFFICER IN SET ASIDE PROCEEDINGS, THE ASSESSING OFF ICER MAY COMMENCE PENALTY PROCEEDINGS AGAIN BUT THE PRESENT PENALTY CANNOT SU RVIVE BECAUSE THE VERY BASIS I.E. THE QUANTUM ADDITION HAS ALREADY BEEN SET ASID E. WE, THEREFORE, DELETE THE PRESENT PENALTY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED WITH ABOVE OBSERVATIONS. 9. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 2 ND MARCH,2010. SD/- SD/- (GEORGE MATHAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 02.3.2010. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).