ITO, New Delhi V. M/s. Airking Charters Pvt. Ltd., New Delhi

ITA 5485/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4468 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 10-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V K AGRAWAL

Judgement Text

IN THE INCOME - TAX APPELLATE TRIBUNAL, DELHI BENCH B , NEW DELHI BEFORE : SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5485/DEL./2015 ASSESSMENT YEAR: 2010 - 11 ITO WARD 2 (1) NEW DELHI (APPELLANT) VS. AIRKING CHARTERS PVT. LTD. E 22 , MASJID MOTH, GREATER KAILASH , PART - III NEW DELHI. PAN - AAHCA5482A (RESPONDENT) APPELLANT BY SHRI ANSHU PRAKASH SR. DR. RESPONDENT BY SH. V . K. AGRAWAL ADVOCATE ORDER PER L.P. SAHU, A.M.: THIS IS AN PENALTY APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 08.07.2015 OF THE LD. CIT(A), I, NEW DELHI FOR THE ASSESSMENT YEAR 2010 - 11. ON THE FOLLOWING GROUND OF APPEAL : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN : - 1. DELETING PENALTY OF RS.10,64,752/ - IMPOSED U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 BY THE A.O. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME ON 23.09.2010. THE CASE WAS SELECTED FOR SCRUTINY. IN THE SCRUTINY PROCEEDINGS, DATE OF HEARING 28.08.2017 DATE OF PRONOUNCEMENT 18 .09.2017 ITA NO. 5485/DEL./2015 2 THE ASSESSING OFFICER MADE CERTAIN ADDITIONS. THE LD. CIT(A) CONFIRMED THE ADDITIONS MADE ON ACCOUNT OF GROUND HANDLING CHARGES OF RS. 32,25,000/ - AND CONVEYANCE EXPENSES OF RS.2,20,800/ - THE ASSESSING OFFICER IMPOSED PENALTY U/S. 271(1)(C) OF THE IT ACT ON THE BASIS OF ABOVE ADDITIONS. AGGRIEVED BY PENALTY ORDER, THE ASSESSEE APPEALED BEFORE THE CIT(A) AN D THE LD. CIT(A) DELETED THE PENALTY IMPOSED BY THE ASSESSING OFFICER. AGGRIEVED BY THIS ORDER OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AS REGARDS THE PENALTY BASED ON GROUND HANDLING CHARGES OF RS. 32,25,000/ - AND CONVEYANCE E XPENSES OF RS.2,20,800/ - , WE FIND THAT THE ITAT BENCH - A, NEW DELHI IN QUANTUM APPEAL (ITA NO. 6107/DEL./2013) FOR THE A.Y. 2010 - 11, HAS ALREADY DELETED THESE ADDITIONS VIDE ORDER DATED 18.08.2017. THEREFORE, SINCE THE VERY BASIS OF IMPOSITION OF PENALTY STOOD COLLAPSED, THERE REMAINS NO JUSTIFICATION TO SUSTAIN THE PENALTY, BASED ON THE ABOVE ADDITIONS AT THIS STAGE. WE, THEREFORE, CONFIRM THE ORDER OF LD. CIT(A), CANCELING THE PENALTY IMPOSED BY THE AO. ACCORDINGLY, THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.09.2017 . SD/ - SD/ - (I.C. SUDHIR) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 18.09.2017 *AKS*