ITO, New Delhi V. M/s. Saraswati Trading Company, New Delhi

ITA 5530/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58687 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2005-2006
• Appeal Filed On: 09-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ANUSHA KHURANA
• Assessee Lawyers: V MOHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER ITA NO.5530/DEL/2011 ASSESSMENT YEAR : 2005-06 ITO, WARD 28(1), ROOM NO.213, IIND FLOOR, DRUM SHAPED BLDG., NEW DELHI. VS. SARASWATI TRADING COMPANY, 5585, LAHORI GATE, NEW DELHI. PAN : AACFS5533J (APPELLANT) (RESPONDENT) ASSESSEE BY : MS RANO JAIN, CA & SHRI V. MOHAN, CA REVENUE BY : MRS. ANUSHA KHURANA, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRECT ED AGAINST THE ORDER PASSED BY THE CIT (A) DATED 26 TH SEPTEMBER, 2011 FOR ASSESSMENT YEAR 2005-06. THE GROUNDS OF APPEAL READ AS U NDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE LEARNED C IT (A)- XXV, NEW DELHI ERRED IN CANCELING THE PENALTY ORDER U /S 271(1)(C) OF THE IT ACT. 2. THAT THE APPELLANT CRAVES LEAVE FOR RESERVING THE RI GHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND (S) O F APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. LEARNED CIT (A) HAS DELETED THE PENALTY ON THE GR OUND THAT THE ADDITION OF ` 1,57,75,972/- MADE U/S 69 BY THE ASSESSING OFFICER HAS BEEN DELETED BY THE ITAT VIDE ITS ORDER DATED 18 TH FEBRUARY, 2011 IN ITA NO.5530/DEL/2011 2 ITA NO.3091/DEL/2008 ON WHICH IMPUGNED CONCEALMENT PENALTY OF ` 57,66,357/- WAS IMPOSED. SINCE THE ADDITION ITSELF HA S BEEN DELETED, THE PENALTY WAS NOT SUSTAINABLE IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF K.C. BUILDERS VS. ACIT 26 5 ITR 562 (SC). 3. THE AFOREMENTIONED ORDER OF THE TRIBUNAL IN QUAN TUM PROCEEDINGS HAS BEEN PLACED ON OUR RECORD. IN THIS VI EW OF THE SITUATION, AFTER HEARING BOTH THE PARTIES, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT (A) VIDE WHICH THE IMPUGNED PENALT Y HAS BEEN DELETED. WE DECLINE TO INTERFERE. THE APPEAL FILE D BY THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 17.02.20 12. SD/- SD/- [K.D. RANJAN] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 17.02.2012. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES