M/s Prasad & Co. Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 5588/DEL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7155 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 14-09-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 17-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Assessee Lawyers: MANOJ GARG
• Section: 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ES F , NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SMT.BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 5588 /DEL/201 3 AY: 20 05 - 06 PRASAD & CO. PVT.LTD. VS. ITO, WARD 14(3) W 149, G.K. I NEW DELHI NEW DELHI PAN: AAACP 4487 M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. MANOJ GARG , C.A. RESPONDENT BY : SH. F.R.MEENA , SR.D.R. DATE OF HEARING : 14.09.2016 DATE OF PRONOUNCEMENT : 16 .09.2016 ORDER PER RS SYAL, ACCOU NTANT MEMBER THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE LD. CIT(A) - XVII , NEW DELHI DATED 12.08.2013 AFFIRMING THE LEVY OF PENALTY OF RS.4,53,474/ - IMPOSED BY THE ASSESSING OFFICER (A.O.) 2 U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) IN RELATION TO THE ASSESSMENT YEAR 20 05 - 06 . 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN DECLARING LOSS OF RS.1,40,938/ - . THE A.O. ON THE BASIS OF THE DISCUSSION MADE IN THE ASSESSMENT ORDER MADE AN ADDITION OF RS.12,95,636/ - AND CONSEQUENTLY COMPUTED TOTAL INCOME AT RS.11,54,700/ - . IT IS ON THE BASIS OF THIS ADDITION THAT HE IMPOSED PENALTY U/S 271(1)(C) OF THE ACT OF RS.4,53,473/ - WHICH CAME TO BE AFFIRMED IN THE FIR ST APPEAL. THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF PENALTY. 3. HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSING THE RELEVANT MATERIAL AVAILABLE ON RECORD, IT IS OBSERVED THAT THE ADDITION OF RS.12,95,636/ - MADE BY THE A.O. WAS CHALLENGED BY THE A SSESSEE IN QUANTUM PROCEEDINGS BEFORE THE TRIBUNAL. THE SAID ADDITION CAME TO BE DELETED BY THE TRIBUNAL VIDE ITS ORDER DT. 31.12.2014 IN ITA NO.419/DEL/12. IN VIEW OF THE FACT THAT THE VERY FOUNDATION FOR IMPOSING THE PENALTY, BEING THE ADDITION OF RS. 12,95,663/ - STANDS OFFICIALLY DELETED, THERE CAN BE QUESTION OF 3 ANY PENALTY U/S 271(1)(C) OF THE ACT ON THIS SCORE. WE THEREFORE DELETE THE PENALTY. 4. IN THE RESULT THE APPEAL IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16. 09.2016. SD/ - SD/ - (BEENA A PILLAI) ( R.S. SYAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16. 09.2016. MANGA COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR, ITAT BY ORDER AR, ITAT, NEW DELHI. 4 DATE 1. DRAFT DICTATED ON 14.9.16 2. DRAFT PLACED BEFORE THE AUTHOR 3. APPROVED DRAFT COMES TO THE SR.PS/PS 4. FILE SENT TO THE BENCH CLERK 5. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 6. DATE ON WHICH FILE GOES TO THE AR 7. DATE OF DISPATCH OF ORDER.