DCIT, Karnal V. M/s. KCM Agriculture Farm, Karnal

ITA 5825/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7386 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 15-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D, NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO.5825/DEL/2016 ASSESSMENT YEAR: 2010-11 DCIT, CIRCLE KARNAL, KARNAL VS. M/S. KCM AGRICULTURE FARM, VILLAGE KAMBOPURA, KARNAL, C/O- SH. RAJAT MADAAN, PARTNER, H. NO. 114, MODEL TOWN, KARNAL PAN :AANFK9730C (APPLICANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 21.09.2016 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), KARNAL, [IN SHORT THE CIT(A)] FOR ASSESSMENT YEAR 2010-11. THE GROUNDS RAISED BY THE REVENUE ARE REPR ODUCED AS UNDER: 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX(APPEALS), KARNAL HAS ERR ED IN LAW AND FACTS IN DELETING THE PENALTY IMPOSED U/S 271(1 )(C) OF THE INCOME TAX ACT, 1961, ON THE BASIS OF DELETION OF Q UANTUM ADDITION BY THE LD. COMMISSIONER OF INCOME TAX (APP EALS), ROHTAK, HOWEVER, THE DEPARTMENT HAS ALREADY FILED A N APPEAL BEFORE THE LEARNED ITAT, NEW DELHI VIDE APPEAL NO. 606/DEL/2016, AY 2010-11, AGAINST THE SAID APPELLAT E ORDER OF APPLICANT BY SHRI J.K. MISHRA, CIT(DR) RESPONDENT BY SHRI R.C. RAI, CA DATE OF HEARING 14.01.2020 DATE OF PRONOUNCEMENT 31.01.2020 2 ITA NO. 5825/DEL/2016 THE QUANTUM APPEAL AND THE SAME IS PENDING FOR ADJU DICATION BEFORE THE HONBLE ITAT. 2. THE ISSUE IN DISPUTE RAISED IN THE APPEAL IS IN RE SPECT OF DELETION OF THE PENALTY BY THE LEARNED CIT(A) WHIC H WAS LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF TH E INCOME-TAX ACT, 1961 (IN SHORT THE ACT). THE GRIEVANCE OF TH E REVENUE IS THAT THE LEARNED CIT(A) DELETED THE PENALTY ON THE GROUN D THAT QUANTUM ADDITIONS ARE DELETED BY THE LEARNED FIRST APPELLATE AUTHORITY WHEREAS THE DEPARTMENT PREFERRED AN APPEA L BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE LEARNED FIRST APP ELLATE AUTHORITY IN QUANTUM PROCEEDINGS. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PARTIES ON THE ISSUE IN DISPUTE. WE FIND THAT THE APPEAL FILED BY THE REVENUE IN THE YEAR UNDER CONSIDERATION WHICH WAS LISTED AS AP PEAL NO. 606/DEL/2016 HAS BEEN DISMISSED BY THE TRIBUNAL ON ACCOUNT OF LOW TAX EFFECT. THUS, AS FAR AS QUANTUM ADDITION IS CONCERNED, THE ORDER OF THE LEARNED FIRST APPELLATE AUTHORITY IS F INAL. AS THE QUANTUM ADDITION HAS ALREADY BEEN DELETED, THE LEAR NED CIT(A) IS JUSTIFIED IN DELETING THE PENALTY. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LEARNED CIT(A) ON THE ISSUE IN DISPUTE. THE GROUNDS OF APPEAL OF THE REVENUE ARE ACCORDINGLY DISMISSED. 4. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2020. SD/- SD/- (AMIT SHUKLA) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 ST JANUARY, 2020. RK/- 3 ITA NO. 5825/DEL/2016 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI