ACIT, New Delhi V. M/s. Rites Ltd., Gurgaon

ITA 6255/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2968 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ATIQ AHMED SENIOR
• Section: 14A

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 F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA ITAITA ITA NO NONO NO . .. . 6255/DEL/2016 6255/DEL/2016 6255/DEL/2016 6255/DEL/2016 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, SPECIAL RANGE SPECIAL RANGE SPECIAL RANGE SPECIAL RANGE- -- -7, 7,7, 7, NE NENE NEW DELHI. W DELHI. W DELHI. W DELHI. VS. VS. VS. VS. M/S RITES LIMITED, M/S RITES LIMITED, M/S RITES LIMITED, M/S RITES LIMITED, RITES BHAWAN, RITES BHAWAN, RITES BHAWAN, RITES BHAWAN, PLOT NO.1, SECTOR PLOT NO.1, SECTOR PLOT NO.1, SECTOR PLOT NO.1, SECTOR- -- -29, 29, 29, 29, GURGAON GURGAON GURGAON GURGAON 122 001. 122 001. 122 001. 122 001. PAN : AAACR0830Q. PAN : AAACR0830Q. PAN : AAACR0830Q. PAN : AAACR0830Q. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ATIQ AHMED, SENIOR DR. RESPONDENT BY : SHRI SATYAJIT GOEL, CA. DATE OF HEARING : 21.12.2017 21.12.2017 21.12.2017 21.12.2017 DATE OF PRONOUNCEMENT : 26.12.2017 26.12.2017 26.12.2017 26.12.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT : :: :- -- - THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-36, NE W DELHI DATED 2 ND SEPTEMBER, 2016. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THIS AP PEAL IS AGAINST THE DELETION OF PENALTY OF `72,37,100/- WHICH WAS L EVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME-TAX A CT, 1961. 3. AT THE TIME OF HEARING BEFORE US, IT WAS POINTED OUT BY THE LEARNED COUNSEL THAT THE PENALTY HAS BEEN LEVIED IN RESPECT OF TWO ADDITIONS (I) THE ADDITION OF `2,01,66,000/- ON A CCOUNT OF INTEREST INCOME AND (II) DISALLOWANCE U/S 14A AMOUNTING TO ` 11,25,844/-. THAT IN QUANTUM APPEAL, THE ITAT, VIDE ORDER DATED 24 TH APRIL, 2017 IN ITA NO.2826/DEL/2014 & 3026/DEL/2014, DELETED BOTH THE ADDITIONS. A ITA-6255/DEL/2016 2 COPY OF THE SAID ORDER WAS PLACED ON RECORD. HE, T HEREFORE, PRAYED THAT THE PENALTY MAY ALSO BE DELETED. 4. LEARNED SENIOR DR RELIED UPON THE ORDER OF THE A SSESSING OFFICER. 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. SINCE T HE ADDITIONS ITSELF HAVE BEEN DELETED BY THE ITAT, THE PENALTY BASED UP ON SUCH ADDITIONS CANNOT SURVIVE. WE, THEREFORE, CANCEL THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 26.12.2017 . SD/- SD/- (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL M JUDICIAL M JUDICIAL M JUDICIAL M EMBER EMBER EMBER EMBER PRESIDENT PRESIDENT PRESIDENT PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : ADDITIONAL COMMISSIONER OF INCOM E TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, SPECIAL RANGE SPECIAL RANGE SPECIAL RANGE SPECIAL RANGE- -- -7, NEW DELHI. 7, NEW DELHI. 7, NEW DELHI. 7, NEW DELHI. 2. RESPONDENT : M/S RITES LIMITED, M/S RITES LIMITED, M/S RITES LIMITED, M/S RITES LIMITED, RITES BHAWAN, PLOT NO.1, SECTOR RITES BHAWAN, PLOT NO.1, SECTOR RITES BHAWAN, PLOT NO.1, SECTOR RITES BHAWAN, PLOT NO.1, SECTOR- -- -29, 29, 29, 29, GURGAON GURGAON GURGAON GURGAON 122 001. 122 001. 122 001. 122 001. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR