M/s. Blossom Advertisers Pvt. Ltd., Delhi V. ITO, New Delhi

ITA 5381/DEL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3181 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-05-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 14-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAMOD K JAIN MS BADOBANI
• Keywords: Period of limitation; Accommodation entries
• Section: 147; 144

Judgement Text

PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH - SMC NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 5381/DEL/20 16 ASSESSMENT YEAR : 2003-04 BLOSSOM ADVERTISERS PVT. LTD. C-107, ABC COMPLEX, 20, VEER SAVARKAR BLOCK, SHAKARPUR DELHI 110 092 PAN AABCB5113D VS. ITO WARD-5(1) NEW DELHI. (APPELLANT) (RESPONDENT) PER BHAVNESH SAINI, JUDICIAL MEMBER ORDER THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAIN ST THE ORDER OF LD.CIT(A), 35 NEW DELHI DATED 14 TH JULY,2016 FOR ASSESSMENT YEAR 2003-04 CHALLENGING THE LEVY OF PENALTY U/S 271(1)( C) OF THE I.T. ACT. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSIN G OFFICER PASSED THE ASSESSMENT ORDER U/S 144 / 147 OF THE I.T. ACT ON DATED 30.11.2010. THE ASSESSING OFFICER CONSIDERED THE ISSUE THAT THE ASSESSEE HAD RECEIVED ACCOMMODATION ENTRIES OF RS. 21,25,000/- F ROM SEVEN PERSONS, DETAILS OF WHICH ARE NOTED IN THE ASSESSMENT ORDER. IN THE ABSENCE OF ASSESSEE BY : SHRI PRAMOD K JAIN, ADVOCATE DEPARTMENT BY: MS. BADOBANI, SR. DR DATE OF HEARING 24/05/2017 DATE OF PRONOUNCEMENT 25 /05/2017 ITA NO. 5381/DEL/2016 BLOSSOM ADVERTISERS PVT. LTD. VS ITO PAGE 2 OF 3 EXPLANATION OF THE SOURCE OF THE SAME AMOUNT, IT WA S ADDED AGAINST THE ASSESSEE U/S 69A OF THE I.T. ACT ON ACCOUNT OF UNEX PLAINED MONEY RECEIVED BY THE ASSESSEE. ADDITION OF RS. 21,35,625 /- WAS ACCORDINGLY MADE ON WHICH THE ASSESSING OFFICER INITIATED THE P ENALTY U/S 271(1) (C) OF THE I.T. ACT AND VIDE SEPARATE ORDER LEVIED THE PENALTY. LD. CIT(A) VIDE IMPUGNED ORDER DISMISSED THE APPEAL OF ASSESSE E. 2. I HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PAR TIES AND PERUSED THE MATERIAL ON RECORD. 3. ACCORDING TO OFFICE THE APPEAL IS TIME BARRED BY SIX DAYS. THE ASSESSEE IN THE APPLICATION FOR CONDONATION OF DELA Y EXPLAINED THAT IMPUGNED ORDER WAS RECEIVED ON 9 TH AUGUST, 2016 AND APPEAL WAS TO BE FILED WITHIN 60 DAYS BUT DEPARTMENT WAS CLOSED DUE TO FESTIVALS DURING 8 TH OCTOBER, 2016 TO 13 TH OCTOBER 2016 THEREFORE APPEAL WAS FILED ON 14 TH OCTOBER, 2016. AFTER CONSIDERING RIVAL CONTENTIONS I AM SATISFIED THAT ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN NOT F ILLING THE APPEAL WITHIN THE PERIOD OF LIMITATION. THE NOMINAL DELAY IN FILING THE APPEAL IS THEREFORE CONDONED. 4. LD. COUNSEL FOR ASSESSEE AT THE OUTSET SUBMITTED THAT THE ADDITION OF RS. 21,35,625/- WHICH IS SUBJECT MATTER OF THE P ENALTY MATTER REMAINED IN QUANTUM APPEAL BEFORE ITAT DELHI BENCH IN THE CASE OF ASSESSEE IN ITA NO. 186 / 14 AND THE TRIBUNAL VIDE ORDER DATED 16.11.2016 RESTORED THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR REEXAMINATION. COPY OF THE ORDER IS PLACED ON RECOR D. ITA NO. 5381/DEL/2016 BLOSSOM ADVERTISERS PVT. LTD. VS ITO PAGE 3 OF 3 5. AFTER CONSIDERING RIVAL SUBMISSIONS I AM OF THE VIEW PENALTY IS NOT LEVIABLE AT THIS STAGE. SINCE THE QUANTUM ADDITION OF RS. 21,35,625/- HAS BEEN RESTORED TO THE FILE OF ASSESSING OFFICER FOR RECONSIDERATION THEREFORE NOTHING SURVIVES IN FAVOUR OF THE REVENUE TO LEVY THE PENALTY AGAINST THE ASSESSEE. THERE IS NO BASIS LEFT TO LEV Y THE PENALTY. I ACCORDINGLY SET ASIDE THE ORDER OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. APPEAL OF THE ASSESSEE IS ALLOWED. HOWEVER ASSESSING OFFICER IS OF LIBERTY TO INITIATE PENALTY PROCEEDINGS AFTER PA SSING THE ORDER OF QUANTUM AS DIRECTED BY THE TRIBUNAL. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT. SD/- ( BHAVNESH SAINI ) JUDICIAL MEMBER DATED: 25/05/2017 *VEENA* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. PRINCIPAL CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR