M/s. Sirocco Consultants Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 4883/DEL/2013

• Counselvise Citation: 488320114 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 12-02-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 16-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR
• Assessee Lawyers: MANU K GIRI
• Section: 68

Judgement Text

ITA NO. 4883 / DEL/ 201 3 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G , NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER I.T.A. NO. 4883 /DEL/201 3 A.Y. : 200 5 - 0 6 M/S SIROCCO CONSULTANTS PVT. LTD., B - 82, 2 ND FLOOR, NARAINA VIHAR, NEW DELHI 110 058 ( PAN: AAICS1398C) VS. DCIT, CIRCLE8(1), NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : S HRI MANU K. GIRI, ADV. DEPARTMENT BY : SH. BRR KUMAR, SR. DR DATE OF HEARING : 1 2 - 02 - 201 5 DATE OF ORDER : 1 6 - 02 - 201 5 ORDER PER H.S. SIDHU : J M ASSESSEE HAS FILED THIS A PPEAL AGAINST THE IMPUGNED ORDER DATED 27 . 5 .201 3 PASSED BY THE LD. CIT(A) - XI, NEW DELHI RELEVANT TO ASSESSMENT YEAR 2005 - 06 . 2. THE FOLLOWING GROUNDS HAVE BEEN RAISED : - 1. THAT THE ORDER PASSED BY THE CIT(A) IS BAD IN LAW. 2. THAT THE LD. CIT(A) ERRED IN UPHOLDING THE PENALTY LEVIED BY THE AO U/S. 271(1)(C) OF THE I.T. ACT, IGNORING THE DECISION OF THE HON BLE ITA NO. 4883 / DEL/ 201 3 2 APEX COURT IN THE CASE OF CIT VS. RELIANCE PETROPRODUCT LTD. (2010) 322 ITR 158 (SC). 3. THAT THE LD. CIT(A) ERRED IN CONCLUDING THAT THE ASSESSE COMPANY FAILED TO DISCHARGE ITS PRIMARY ONUS U/S. 68 OF THE INCOME TAX ACT, 1961, AND HENCE WAS LIABLE FOR LEVY OF PENALTY U/S. 271(1)(C). THE ASSESSEE COMPANY RESERVES THE RIGHT TO ADD, ALTER, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE HEARING OF THE APPEAL. 3. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSESSEE STATED THAT THE ADDITIO NS ON WHICH THE ALLEGED PENALTY HAS BEEN LEVIED HAS BEEN SET ASIDE BY THE ITAT TO THE FILE OF THE AO, IN ASSESSEE S OWN CASE IN RESPECT OF THE SAME ASSESSMENT YEAR I.E. 2005 - 06 PASSED IN ITA NO. 2070/DEL/2010 VIDE ORDER DATED 24.10.2013 . IN THIS REGARD , LD. COUNSEL OF THE ASSESSEE HAS FILED THE COPY OF THE AFORESAID ITAT O RDER DATED 24.10.2013 BEFORE US AND STATED THAT IN VIEW OF THE DECISION TAKEN IN THE ORDER DATED 24.10.2013, THE PENALTY IN DISPUTE IS NOT SUSTAINABLE IN THE EYES OF LAW. 4. ON THE C ONTRARY, LD. DR HAS RELIED UPON THE ORDERS OF THE REVENUE AUTHORITIES. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RELEVANT RECORDS, ESPECIALLY THE ORDER S PASSED BY THE REVENUE AUTHORITIES ALONGWITH THE ITAT ORDER DATED 24.10.2013 PASSED IN ITA NO. 2070/DEL/2010 IN ASSESSEE S OWN CASE FOR THE ASSTT. YEAR 2005 - 06. WE FIND THAT THE ADDITIONS ON WHICH THE PENALTY HAS BEEN LEVIED BY THE AO HAS BEEN SET ASIDE BY THE TRIBUNAL VIDE ITS ORDER DATED 24.10.2013 PASSED IN ITA NO. 2070/DEL/2010 IN ASSESSEE S OWN CASE ITA NO. 4883 / DEL/ 201 3 3 FOR THE ASSTT. YEAR 2005 - 06, THEREFORE, WE FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE ASSESSEE S COUNSEL THAT THE PENALTY IN DISPUTE IS NOT SUSTAINABLE IN THE EYES OF LAW, HENCE, WE CANCEL THE SAME BY ACCEPTING T HE APPEAL FILED BY THE ASSESSEE. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED . ORDER PRONOUNCED IN THE O PEN C OURT ON 1 6 / 2 /20 1 5 . S D / - S D / - [ J.S. REDDY ] [ H.S. SIDHU ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 1 6 / 2 /201 5 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES ITA NO. 4883 / DEL/ 201 3 4