DCIT, New Delhi V. M/s. Brightways Housing and Land Development Ltd., New Delhi

ITA 5314/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3560 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 27-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AFIQ AHMAD
• Assessee Lawyers: SHAILES
• Keywords: Bogus Share capital

Judgement Text

1 ITA.NOS.5313 & 5314/DEL./2015 M/S. BRIGHTWAYS HOUSING & LAND DEVELOPMENT LTD., NEW DELHI. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES F : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.5313 & 5314/DEL./2015 ASSESSMENT YEARS 2005-2006 & 2006-2007 THE DCIT, CC-18, ROOM NO.327, 3 RD FLOOR, ARA CENTRE, E-2, JHANDEWALAN EXTN., NEW DELHI. 110 055. VS. M/S. BRIGHTWAYS HOUSING AND LAND DEVELOPMENT LTD., 9-KASTURBA GANDHI MARG, NEW DELHI. PAN AABCB9862D (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI AFIQ AHMAD, SR. D.R. FOR ASSESSEE : SHRI SALIL AGARWAL, ADVOCATE AND SHRI SHAILESH GUPTA, C.A. DATE OF HEARING : 25.01.2018 DATE OF PRONOUNCEMENT : .02.2018 ORDER PER BHAVNESH SAINI, J.M. BOTH THE APPEALS BY REVENUE ARE DIRECTED AGAINST DIFFERENT ORDERS OF THE LD. CIT(A)-29, NEW DELHI, D ATED 10 TH JUNE, 2015, FOR THE A.YS. 2005-2006 AND 2006-2007, DELETIN G THE PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT, 1961. 2 ITA.NOS.5313 & 5314/DEL./2015 M/S. BRIGHTWAYS HOUSING & LAND DEVELOPMENT LTD., NEW DELHI. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE A.O . LEVIED THE PENALTY ON ADDITIONS OF RS.3,15,00,000 AND RS.63 LA KHS RESPECTIVELY IN BOTH THE ASSESSMENT YEARS WHICH WAS MADE ON ACCO UNT OF BOGUS SHARE APPLICATION MONEY RECEIVED FROM SHRI S.K. GUP TA. THE A.O. PASSED THE ORDERS UNDER SECTION 153C R.W.S.143(3) O F THE I.T. ACT. THE LD. CIT(A) NOTED THAT THE AFORESAID ADDITIONS R EMAIN SUBJECT OF APPEAL BEFORE ITAT, DELHI BENCH AND THE TRIBUNAL VI DE ITS ORDER DATED 1 ST APRIL, 2015, HAS DELETED THE ADDITIONS. THEREFORE, THE PENALTY WERE CANCELLED. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT NO INTERFERENCE IS REQUIRED IN THE ORDER OF THE LD. CIT(A) IN DELETING THE PENALTIES. THE LEARNED COUNSEL FOR THE ASSESSEE FILED COPY OF THE ORDER OF THE ITAT, DELHI A BENCH IN T HE CASE OF SAME ASSESSEE IN ITA.NO.5117 & 5118/DEL./2013 FOR A.YS. 2005-2006 AND 2006-2007 UNDER APPEAL IN WHICH THE TRIBUNAL VIDE O RDER DATED 1 ST APRIL, 2015 QUASHED THE PROCEEDINGS INITIATED US 15 3C OF THE I.T. ACT. RESULTANTLY, ALL THE ADDITIONS WERE DELETED. IT IS, THEREFORE, AN ADMITTED FACT THAT QUANTUM ADDITION DOES NOT SURVIV E. THEREFORE, THERE IS NO JUSTIFICATION TO LEVY THE PENALTY AGAIN ST THE ASSESSEE. THE 3 ITA.NOS.5313 & 5314/DEL./2015 M/S. BRIGHTWAYS HOUSING & LAND DEVELOPMENT LTD., NEW DELHI. LD. CIT(A), CORRECTLY DELETED THE PENALTY IN BOTH T HE ASSESSMENT YEARS UNDER APPEAL. THE DEPARTMENTAL APPEALS FAILS AND DI SMISSED. 4. IN THE RESULT, BOTH THE APPEALS OF THE DEPARTME NT ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 01 ST FEBRUARY, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT F BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSESSMENT. REGISTRAR : ITAT DELHI BENCHES : DELHI.