M/s Paras Lubricants Ltd., New Delhi V. DCIT, New Delhi

ITA 605/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6862 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 03-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 274

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI F BEN CH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL M EMBER ITA NO. 605/DEL/2017 [A.Y 2012-13] M/S PARAS LUBRICANTS LTD VS. THE DY. C.I.T 311-312, MANGLAM PARADISE CIRCLE 19(2) PLOT NO. 8, THIRD FLOOR NEW DELHI MANGLAM PLACE, SECTOR 3, ROHINI, NEW DELHI PAN: AAACP 0442 L (APPLICANT) ( RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI SURENDRA PAL , SR. DR DATE OF HEARING : 30.10.2019 DATE OF PRONOUNCEMENT : 31.10.2019 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] 12, NEW DELHI DATED 30.11.2016 PERTAINING TO ASSESSMENT YEAR 2012-13. 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE AS SESSEE IS THAT THE LD. CIT(A) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN IMPOSING PENALTY U/S 271(1)(C) OF THE INCOME TAX AC T, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT]. THE ASSESSEE HAS ALSO CHALLENGED THE LEVY OF PENALTY ON THE GROUND THAT T HE ASSESSING OFFICER HAS ISSUED A PRE-PRINTED NOTICE U/S 271(1)(C) OF TH E ACT R.W.S 274 WITHOUT SPECIFYING UNDER WHICH LIMB THE PENALTY IS LEVIABLE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVE R, AN APPLICATION FOR ADJOURNMENT WAS FILED. THE ADJOURN MENT IS DENIED AND WE HAVE DECIDED TO PROCEED EXPARTE. 4. NOTICE U/S 274 R.W.S 271 OF THE ACT IS EXHIBITED AT PAGE 24 OF THE APPEAL SET. A PERUSAL OF THE SAID NOTICE CLEARLY S HOWS THAT THE ASSESSING OFFICER HAS NOT SPECIFIED UNDER WHICH LIM B OF THE SECTION THE PENALTY IS LEVIABLE. 5. THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE ORDER OF THE HON'BLE HI GH COURT OF DELHI IN A BUNCH OF APPEALS IN ITA NO. 475, 426, 427 AND 429 OF 2019 VIDE ORDER 3 DATED 2.8.2019. THE RELEVANT FINDINGS OF THE HON'B LE HIGH COURT READ AS UNDER: 21. THE RESPONDENT HAD CHALLENGED THE UPHOLDING OF THE PENALTY IMPOSED UNDER SECTION 271(1) (C) OF THE ACT , WHICH WAS ACCEPTED BY THE ITAT. IT FOLLOWED THE DECISION OF THE KARNATAKA HIGH COURT IN CIT V. MANJUNATHA COTTON & GINNING FACTORY 359 ITR 565 (KAR) AND OBSERVED THAT THE NOT ICE ISSUED BY THE AO WOULD BE BAD IN LAW IF IT DID NOT SPECIFY WHICH LIMB OF SECTION 271(1) (C) THE PENALTY PROCEE DINGS HAD BEEN INITIATED UNDER I.E. WHETHER FOR CONCEALMENT O F PARTICULARS OF INCOME OR FOR FURNISHING OF INACCURA TE PARTICULARS OF INCOME. THE KARNATAKA HIGH COURT HAD FOLLOWED THE ABOVE JUDGMENT IN THE SUBSEQUENT ORDER IN COMMI SSIONER OF INCOME TAX V. SSA S EMERALD MEADOWS (2016) 73 TAXMAN.COM 241 (KAR). THE APPEAL AGAINST WHICH WAS DISMISSED BY THE SUPREME COURT OF INDIA IN STP NO.11485 OF 20 16 BY ORDER DATED 5 TH AUGUST, 2016. 22. ON THIS ISSUE AGAIN THIS COURT IS UNABLE TO FIN D ANY ERROR HAVING BEEN COMMITTED BY THE ITAT. NO SUBSTANTIAL Q UESTION OF LAW ARISES. 4 6. FINDING PARITY ON THE FACTS OF THE CASE WITH THE AFORESAID DECISION, RESPECTFULLY FOLLOWING THE FINDINGS OF TH E HON'BLE HIGH COURT [SUPRA] IN THE LIGHT OF FACTS RELATING TO LEVY OF P ENALTY, AS MENTIONED ELSEWHERE, WE DIRECT THE ASSESSING OFFICER TO DELET E THE PENALTY SO LEVIED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN IT A NO. 605/DEL/2017 IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 31.1 0.2019. SD/- SD/- [ SUCHITRA KAMBLE ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 ST OCTOBER, 2019 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER