NAGESH KNITWEARS PVT. LTD., NEW DELHI V. ADDL. CIT, SPECIAL RANGE- 6, NEW DELHI

ITA 5279/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4444 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 10-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S N MEENA
• Assessee Lawyers: MUNSHI RAM
• Keywords: Set aside
• Section: 271(1)(c); 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES FRIDAY/A, NEW DELHI BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 5279/DEL/2019 : ASSTT. YEAR : 201 2-13 NAGESH KNITWEARS PVT. LTD., G T ROAD, WEST LUDHIANA, PUNJAB-141008 VS ADDL. CIT, SPECIAL RANGE-6, NEW DELHI-110002 (APPELLANT) (RESPONDENT) PAN NO. AA ACN2140D ASSESSEE BY : SH. MUNSHI RAM, AR REVENUE BY : SH. S. N. MEENA, SR. DR D ATE OF HEARING: 07 . 0 2 .2020 DATE OF PRONOUNCEMENT: 21 .02 .2020 ORDER PER DR. B.R.R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF LD. CIT(A)-37, NEW DELHI DATED 16.04.2 019. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT THE LD. CIT (A) HAS ERRED BOTH IN LAW AND ON FACTS IN CONFIRMING THE ORDER OF PENALTY LEVIED U/S 271(1)(C) OF I.T. ACT, 1961 AT RS.1,43,690/- BY THE LD. ADDITIONAL COMMISSIONER OF INCOME TAX. 2. THAT THE APPELLANT HUMBLY PRAYS THAT THE ORDER O F THE LD. CIT (A) MAY KINDLY BE SET ASIDE AND PENALTY IMPOSED BY THE LD. ADDITION CIT BE CANCELLED. 3. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL ON RECORD. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED THE RETURN OF INCOME OF RS.1,20,90,150/-. AS PER ORDER U/S 143(3) ITA NO. 5279/DEL/2019 NAGESH KNITWEARS PVT. LTD. 2 OF THE ACT DATED 26.03.2015, THE INCOME WAS ASSESSE D AT RS.1,69,63,941/-. THE ASSESSEE DEBITED AN AMOUNT OF RS.48,73,791/- ON ACCOUNT OF REBATE AND DISCOUNT. T HE ASSESSEE WAS REQUIRED TO FURNISH THE COMPLETE DETAI LS IN RESPECT OF THE SAID REBATE AND DISCOUNT, THE ASSESS EE FILED LEDGER ACCOUNT OF RS.4,78,611/- IN RESPECT OF REBAT E AND DISCOUNT ONLY AND ANOTHER LEDGER WAS IN RESPECT OF THE CLAIM PAID TO FOREIGN PARTIES AT RS.44,08,788/- AND SINCE THE ASSESSEE FAILED TO SUBSTANTIATE THE CLAIM EXCEPT FI LING THE LEDGER ACCOUNT WHICH IS NOT ENOUGH PROOF, THE ASSES SING OFFICER ADDED THE TOTAL SUM OF RS.48,73,791/- UNDER THE HEAD REBATE AND DISCOUNT. 5. THE LD. CIT (A) AFTER PERUSAL OF THE BANK CERTIF ICATES TO EXPORT AND REALIZATION FROM WHICH THE DIFFERENCE BE TWEEN BILL AMOUNT AND REALIZED AMOUNT DIRECTED THE DELETION OF RS.44,08,758/-. IN RESPECT OF RS.4,65,003/- RELATIN G TO DOMESTIC SALE, THE LD. CIT (A) OBSERVED THAT THOUGH THE ASSESSEE WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNTS , THEY FAILED TO PRODUCE THE SAME AND THEREFORE, CONFIRMED THE DISALLOWANCE TO THE TUNE OF RS.4,65,003/-. THE TRIB UNAL AFTER VERIFICATION OF DOMESTIC SALE HELD THAT THE REBATE AND DISCOUNT CONSTITUTING 0.14%, 0.02%, 0.02% AND 0.24% DECLARED BY THE ASSESSEE IN THE EARLIER FOUR YEARS HAS BEEN ACCEPTE D, UNALTERED IN THE ORDERS PASSED U/S 143(3)OF THE INCOME TAX AC T, 1961 AND DELETED THE ADDITION OF RS.4,65,003/-. 6. AT THIS JUNCTURE, SINCE THE ENTIRE ADDITION MADE ON ACCOUNT OF REBATE AND DISCOUNT STANDS DELETED, THE PENALTY LEVIED U/S 271(1)(C) DO NOT SURVIVE. HENCE, THE ORD ER OF THE LD. CIT (A) IS LIABLE TO BE QUASHED. ITA NO. 5279/DEL/2019 NAGESH KNITWEARS PVT. LTD. 3 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/02/2020. SD/- SD/- (SUSHMA CHOWLA) (DR. B.R.R. KUMAR) VICE PRESIDENT ACCOUNTANT ME MBER DATED: 21/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR