ACIT, CIRCLE- 52(1), NEW DELHI V. N S SOFTWARE, NEW DELHI

ITA 5714/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0172 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 06-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL DELHI BENCH E: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE, SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI A.N.MISSHRA, ACCOUNTANT MEMBER ITA NO.5714/DEL/2017 (ASSESSMENT YEAR 2008-09) ASST. CIT CIRCLE-52(1), NEW DELHI. VS. M/S N. S. SOFTWARE 12, RING ROAD, LAJPAT NAGAR-IV, NEW DELHI-110 024 PAN AAEFN 9135B (APPELLANT) (RESPONDENT) APPELLANT BY MS. RAKHI VIMAL, SR. DR RESPONDENT BY SH. SALIL AGGARWAL, CA DATE OF HEARING 16.03.2021 DATE OF PRONOUNCEMENT 16.03.2021 ORDER PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE DEPARTMENT AGAINST ORDER DATED 30.05.2017 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-24, NEW DELHI {CIT(A)} FOR ASSESSMENT YEAR 2008-09 WHEREIN THE LD. CIT(A) HAS DELETED THE PENALTY AMOUN TING TO 2 ITA NO.5714/DEL/2017 ACI T VS. N.S. SOFTWARE RS.63,86,300/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT). 2.0 AT THE OUTSET, THE LD. AUTHORIZED REPRESEN TATIVE (AR) SUBMITTED THAT THE QUANTUM PROCEEDINGS IN THIS CASE FOR THE RELEVANT ASSESSMENT YEAR WAS DECIDED BY DELHI BENCH OF THE ITAT IN FAVOUR OF THE ASSESSEE WHEREIN THE ASSESSEES APP EALS IN ITA NOS.3584, 3585, 3586, 3587 & 3588/DEL/2014 WERE ALL OWED AND THE DEPARTMENTS APPEALS IN ITA NOS.3752 & 3753/DEL /2014 WERE DISMISSED. THE LD. AR SUBMITTED THAT VIDE ORDER DAT ED 28.02.2018, THE TRIBUNAL HAD QUASHED THE ASSESSMENT ORDER PASSE D BY THE ASSESSING OFFICER AND, THEREFORE, THE VERY FOUNDATI ON FOR LEVY OF PENALTY U/S 271(1)(C) OF THE ACT CEASED TO EXIST. THE LD. AR PLACED A COPY OF THE ORDER OF THE TRIBUNAL ON RECORD. THE LD. AR FURTHER SUBMITTED THAT THIS ORDER OF THE TRIBUNAL WAS THE SU BJECT MATTER OF THE APPEAL BEFORE THE HONBEL DELHI HIGH COURT AND THE HON,BLE DELHI HIGH COURT VIDE ORDER DATED 13.09.2017 DISMIS SED THE APPEAL OF THE DEPARTMENT. A COPY OF THE ORDER OF THE HONB LE DELHI HIGH COURT WAS ALSO PLACED ON RECORD. 3 ITA NO.5714/DEL/2017 ACI T VS. N.S. SOFTWARE 3.0 PER CONTRA, THE LD. SR. DEPARTMENTAL REPR ESENTATIVE (DR) FAIRLY ACCEPTED THAT THE PENALTY DID NOT SURVIVE IN VIEW OF THE ORDER OF THE ITAT IN THE QUANTUM PROCEEDINGS. 4.0 HAVING HEARD BOTH THE PARTIES, AND AFTER H AVING GONE THROUGH THE ORDER OF THE TRIBUNAL IN THE QUANTUM PR OCEEDINGS AS AFOREMENTIONED IN ITA NOS. 3584, 3585, 3586, 3587 & 3588/DEL/2014 FOR ASSESSMENT YEARS 2005-06 TO ASSES SMENT YEARS 2009-10, WE AGREE WITH THE CONTENTION OF THE LD. AR THAT THE QUANTUM PROCEEDINGS HAVE BEEN QUASHED BY THE TRIBUN AL AND, THEREFORE, THE CONSEQUENTIAL PENALTY HAS NO FEET TO STAND ON. WE ALSO NOTE THAT THE ABOVE MENTIONED ORDER OF THE TRI BUNAL IN THE QUANTUM PROCEEDINGS HAVE BEEN UPHELD BY THE HONBLE DELHI HIGH COURT. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD. C IT(A) IN DELETING THE PENALTY. 5.0 IN THE FINAL RESULT, THE APPEAL OF THE D EPARTMENT STANDS DISMISSED. ABOVE DECISION WAS ANNOUNCED ON CONCLUSION OF VIRTUAL HEARING ON 16 TH MARCH, 2021. SD/- SD/- (A.N.MISSHRA) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16/03/2021 4 ITA NO.5714/DEL/2017 ACI T VS. N.S. SOFTWARE PK/PS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI