Shri Kamal Sahdev, New Delhi V. ACIT, New Delhi

ITA 6126/DEL/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69669 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 17-12-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 10-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH D DD D : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .6126/DEL/2012 6126/DEL/2012 6126/DEL/2012 6126/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2003 2003 2003 2003- -- -04 0404 04 SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, A AA A- -- -203, DEFENCE COLONY, 203, DEFENCE COLONY, 203, DEFENCE COLONY, 203, DEFENCE COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 11 11 11 110 024. 0 024. 0 024. 0 024. PAN : PAN : PAN : PAN : ABIPS4694R. ABIPS4694R. ABIPS4694R. ABIPS4694R. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -30(1), 30(1), 30(1), 30(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PIYUSH KAUSHIK, ADVOCATE. RESPONDENT BY : SHRI S.N. BHATIA, SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-XXV, NEW DELHI DATED 17 TH SEPTEMBER, 2012 FOR THE AY 2003-04. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS AGAINS T THE CONFIRMATION OF PENALTY OF ` 1,37,440/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 . 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. THE PENALTY HAS BEEN LEVIED ON ACCOUNT OF DISALLOWANCE OF EXPENSES AMOUNTING TO ` 5,22,996/- UNDER VARIOUS HEADS I.E. FOREIGN TRAVELING EXPENSES, REPAIR AND MAINTENANCE EXPENSES , ELECTRICITY EXPENSES, BUSINESS PROMOTION EXPENSES AND CAR EXPEN SES. OUT OF THESE EXPENSES, PART OF THE EXPENSES HAS BEEN DISAL LOWED ON AD-HOC BASIS. IN OUR OPINION, ON SUCH AD-HOC DISALLOWANCE OUT OF EXPENSES, NO PENALTY UNDER SECTION 271(1)(C) IS LEVIABLE. WHILE TAKING THIS VIEW, WE RELY ON THE DECISION OF HONBLE APEX COURT IN THE C ASE OF CIT VS. ITA-6126/D/2012 2 RELIANCE PETROPRODUCTS PVT.LTD. [2010] 322 ITR 158 (SC), WHEREIN THEIR LORDSHIPS HELD AS UNDER:- WHERE THERE IS NO FINDING THAT ANY DETAILS SUPPLIE D BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271(1)(C). A MERE TAKING OF A CLAIM, WHICH IS NOT SUSTAINABLE IN LAW, BY ITSELF, WILL NO T AMOUNT TO FURNISHING INACCURATE PARTICULARS REGARDING THE INC OME OF THE ASSESSEE. SUCH A CLAIM MADE IN THE RETURN CANN OT AMOUNT TO FURNISHING INACCURATE PARTICULARS. 4. ACCORDINGLY, RESPECTFULLY FOLLOWING THE ABOVE DE CISION OF HONBLE APEX COURT, WE CANCEL THE PENALTY LEVIED UNDER SECT ION 271(1)(C) OF THE ACT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2013. SD/- SD/- ( (( (ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY) )) ) (G.D.AGRAW (G.D.AGRAW (G.D.AGRAW (G.D.AGRAWAL) AL) AL) AL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 20.12.2013 VK. COPY FORWARDED TO: - 1. APPELLANT : SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, SHRI KAMAL SAHDEV, A AA A- -- -203, DEFENCE COLONY, 203, DEFENCE COLONY, 203, DEFENCE COLONY, 203, DEFENCE COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 024. 110 024. 110 024. 110 024. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TA X, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -30(1), NEW DELHI. 30(1), NEW DELHI. 30(1), NEW DELHI. 30(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR