M/s. Dharampal Satyapal Sons (P) Ltd., New Delhi V. DCIT, Central Circle-29, New Delhi

ITA 5250/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0218 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 14-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES B : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA.NO.5250/DEL./2017 ASSESSMENT YEAR 2010-2011 M/S. DHARAMPAL SATYAPAL SONS (P) LTD., 4848-29/24, 1 ST FLOOR, PRAHLAD LANE, ANSARI ROAD, DARYAGANJ, NEW DELHI 110 002. PAN AABCD9090K [ VS. THE DCIT, CENTRAL CIRCLE-29, ARA CENTRE, JHANDEWALAN EXTENSION, NEW DELHI. ( APPELLANT ) (RESPONDENT) FOR ASSESSEE : SHRI GAURAV JAIN, ADVOCATE & SHRI DEEPESH JAIN, C.A. FOR REVENUE : MS. NIDHI SRIVASTAVA, CIT-D.R. DATE OF HEARING : 24 .0 6 .20 20 DATE OF PRONOUNCEMENT : 24 .0 6 .20 20 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-30, NEW DELHI, DATED 01.06.2017, FOR THE A.Y. 2010-2011, CHALLENGING THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT, 1961. 2 ITA.NO.5250/DEL./2017 M/S. DHARAMPAL SATYAPAL SONS (P) LTD., NEW DELHI. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES THROUGH VIDEO CONFERENCING AND PERUSED THE MATERIAL ON RECORD. 3. IN THIS CASE, A.O. MADE AN ADDITION OF RS.25,89,354/- ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE SPENT ON EDUCATION OF SHRI CHITRESH GUPTA. THE A.O. VIDE SEPARATE ORDER DATED 10.03.2016 LEVIED THE PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT ON THE IMPUGNED ADDITION. THE LD. CIT(A) CONFIRMED THE LEVY OF PENALTY. 4. LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE ASSESSEE PREFERRED APPEAL AGAINST THE QUANTUM ADDITION BEFORE ITAT, DELHI B-BENCH, NEW DELHI IN ITA.NO.5918/DEL./2014, FOR THE A.Y. 2010-2011, WHEREBY THE ISSUE ON MERIT HAVE BEEN RESTORED TO THE FILE OF THE A.O. VIDE ORDER DATED 09.11.2017. COPY OF THE ORDER IS PLACED ON RECORD. HE HAS, THEREFORE, SUBMITTED THAT PENALTY AT THIS STAGE IS NOT LEVIABLE BECAUSE THE QUANTUM ORDER HAVE BEEN SET ASIDE BY THE TRIBUNAL. 3 ITA.NO.5250/DEL./2017 M/S. DHARAMPAL SATYAPAL SONS (P) LTD., NEW DELHI. 5. THE LD. D.R. MERELY RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT PENALTY IS NOT LEVIABLE AT THIS STAGE. SINCE THE ITAT, DELHI B-BENCH, NEW DELHI (SUPRA), HAS SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW FOR VERIFICATION OF THE ISSUE TO THE FILE OF A.O. VIDE ORDER DATED 09.11.2017, THEREFORE, NOTHING LEFT FOR THE AUTHORITIES BELOW TO LEVY THE PENALTY AGAINST THE ASSESSEE AT THIS STAGE. WE, THEREFORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. THE A.O. IS, HOWEVER, AT LIBERTY TO INITIATE THE PENALTY PROCEEDINGS IN ACCORDANCE WITH LAW, IF SO ADVISED, AFTER PASSING THE ASSESSMENT ORDER AFRESH AS PER LAW. 7. IN THE RESULT, APPEAL OF ASSESSEE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 24 TH JUNE, 2020 VBP/- 4 ITA.NO.5250/DEL./2017 M/S. DHARAMPAL SATYAPAL SONS (P) LTD., NEW DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT B BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.