DCIT, New Delhi V. M/s. Vipul Ltd., Gurgaon

ITA 5103/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4164 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 16-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH ARORA
• Section: 14A

Judgement Text

ITA NO.5103/DEL/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDEN T & SHRI K.N. CHARY, JUDICIAL MEMBER ITA NO.-5103/DEL/2014 ( ASSESSMENT YEAR: 2009-10) DCIT CIRCLE-17(1) NEW DELHI VS VIPUL LTD. (FKA VIPUL INFRASTRUCTURE DEVELOPMERS PVT. LTD.) VIPUL TECH SQUARE, SECTOR-43, GOLF COURSE ROAD GURGAON AAACA5396C ASSESSEE BY SHRI RAJ ESH ARORA, CA REVENUE BY SMT. RITU SHARMA, SR. DR ORDER PER K. NARSIMHA CHARRY, J.M. THIS IS AN APPEAL BY THE REVENUE CHALLENGING THE OR DER DATED 07.07.2014 IN APPEAL NO. 354/13-14 PASSED BY THE LD . COMMISSIONER OF INCOME TAX (APPEALS)-XXI, NEW DELHI (FOR SHORT CALLED LD. CIT(A)), REVENUE PREFERRED THIS APPEAL ON THE FOLLOWING GROUNDS :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) ERRED IN DELETING PENALTY AMOUNTING TO RS. 10,51,08 3/- MADE BY THE AO U/S 271(1)(C) OF THE I.T.ACT,1961. DATE OF HEARING 03.01.2018 DATE OF PRONOUNCEMENT 04.01.2018 ITA NO.5103/DEL/2014 2 2. THE LEVY OF PENALTY INVOLVED IN THIS MATTER WAS IN RESPECT OF THE ADDITION MADE BY THE LD. AO BY DISALLOWING THE EXPENSES AND INVOKING THE PROVISIONS U/S 14A OF THE ACT R. W. RU LE 8D OF THE INCOME TAX APPEAL RULES, 1962. LD. CIT(A) IN APPEAL DELETED THE SAME HOLDING THAT THIS IS A CASE OF A BONA FIDE CLA IM BASED ON A REASONABLE INTERPRETATION OF LAW, BUT NOT ACCEPTABL E TO THE LD. AO, AS SUCH WHILE FOLLOWING THE DECISION REPORTED IN C IT V RELIANCE PETROPRODUCTS (P) LTD. (2010) 322 ITR 158 (SC), H E DELETED THE PENALTY. TODAY WHEN THE MATTER IS CALLED, LD. AR PR ODUCED THE COPY OF ORDER DATED 14.7.2016 IN ITA NOS. 2153 AND 4397/DEL/2013, THE APPEALS PREFERRED BY THE ASSESSE E AGAINST THE QUANTUM ADDITION. HE SUBMITTED THAT BY A WAY OF THI S ORDER A COORDINATE BENCH OF THIS TRIBUNAL DELETED THE QUANT UM ADDITION. 3. ON A CAREFUL CONSIDERATION OF A MATTER, WE FIN D THAT AS RIGHTLY POINTED OUT BY THE LD. CIT(A), THIS IS NOT A CASE OF ANY CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE P ARTICULARS OF INCOME, BUT A CLAIM PREFERRED BY THE ASSESSEE WAS N OT FOUND FAVOUR WITH LD. AO. THE DECISION IN RELIANCE PETROP RODUCTS (P) LTD.(SUPRA) IS APPLICABLE TO THE FACTS OF THE CASE. FURTHER THE QUANTUM IS DELETED BY A CO-ORDINATE BENCH OF THIS T RIBUNAL IN APPEAL AS SUCH PENALTY DOES NOT SURVIVE. VIEWING FR OM ANY ANGLE THE PENALTY DOES NOT SURVIVE. HENCE, WE CONFIRM THE FINDINGS OF THE LD. CIT(A). ITA NO.5103/DEL/2014 3 4. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 04 JANUARY, 2018. SD/- SD/- (G.D. AGRAWAL) (K. NARSIMHA CHAR RY) PRESIDENT JUDICIAL MEMBER DATED: 04.01.2018 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.5103/DEL/2014 4 DRAFT DICTATED ON 03.01.2018 DRAFT PLACED BEFORE AUTHOR 03.01.2018 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 03.01.2018 KEPT FOR PRONOUNCEMENT ON 04.01.2018 FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.