BLK Lifestyle Ltd., New Delhi V. ACIT, Central Circle- 15 , New Delhi

ITA 6313/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6093 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 25-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAURAV RAHTOGI
• Section: 32; 132; 43; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.6313/DEL/2019 Assessment Year 2008-09 M/s. BLK Lifestyle Ltd., B-1/E-23 Extension, Mohan Co- operative Industrial Estate, Mathura Road, New Delhi. vs. ACIT, Central Circle-15, New Delhi. TAN/PAN: AABCB8273C (Appellant) (Respondent) Appellant by: Shri Saurav Rahtogi, CA Respondent by: Mrs. Suman Malik, Sr.D.R. Date of hearing: 23 06 2022 Date of pronouncement: 18 07 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een filed at th e in s tan ce o f th e assesse e ag ain st t h e o rd er o f th e Co mmiss io n er o f Inco me Tax (Ap p eals)-XXVI, New Delh i [‘CIT(A)’ in sho rt] d ated 1 3 .0 6 .20 19 arisin g fro m th e a ssess men t o rd er d ated 2 9 .1 2 .2 00 9 p assed b y the Assessin g Offic er (AO) u n d er Sectio n 1 43 (3 ) o f th e In co me Tax Act, 1 9 6 1 (th e Act ) co n cern in g AY 20 0 8 -0 9 . 2 . As p er its g ro u nds o f ap p eal , th e a ssessee h as ch al le n g ed imp o si t io n o f p en alty o f Rs.3 ,0 0 ,8 8 0 /- un d er Section 271 (1 )(c) o f th e Act . 3 . We h av e h eard th e riv al su b miss io n s o n th e issu e. 4 . As stated o n b eh alf o f th e ass essee , a search and seizu re o p eratio n u n d er Sect io n 1 3 2 o f t h e Act was co n d u cted on I.T.A. No.6313/DEL/2019 2 1 9 .0 2 .20 0 8 in th e case o f M /s. B .L . Kash y ap & So n s Grou p o f cases in c lu d in g th e assesse e h erein . Th e assessee th ere after fi led retu rn o n 2 6 .09 .2 00 8 an d d eclared a lo ss o f Rs . (-) 5 ,8 4 ,5 5 ,6 22 /-. Th e in co me was a ssessed u n d er Sectio n 1 4 3 (3) o f th e Act v id e o rd er d ated 2 9 .12 .2 0 09 assessin g th e lo ss o f Rs. (-) 5 ,14 ,9 6 ,3 50 /-. Th e p en alty p roceed in g s were simu l tan eo u sly iss u ed un d er 2 7 1 (1 )(c) o f th e Act. A p en alty o f Rs.3 ,0 0 ,8 8 0 /- was imp o sed u n d er Sectio n 2 71 (1 )(c) o f th e Act a fter t ak in g in to acco u n t certa in reli efs g ran ted b y th e ap pell at e o rd er in the q u an tu m p ro ceed in g s. In h is fac tu al b a ck d ro p, th e ass essee co n ten d s th at th e p en alty in th e in stan t c ase h as b een in it iat ed u n der Sect io n 2 7 1 (1 )(c) o f th e Act wh ereas th e cas e o f th e assessee c lear ly fa lls u n d er Sectio n 2 71AAA o f th e Act a p p licab le at th e rel ev an t ti me. Th e assesse e th u s co n ten d s th at th e wh o le p ro ceed ing s u nd er Sect io n 2 7 1(1 )(c) cu lmin at in g in i mp o sit io n o f p en alty o f Rs.3 ,0 0 ,8 8 0 /- is v o id a b in itio an d req u ires to b e stru ck do wn b ein g ap p o se to th e Sch e me o f th e A ct. 5 . As n o ted , a sear ch was carried o u t o n 1 9 .02 .2 00 8, i.e ., d u rin g th e cu rren cy o f Fin an c ial Year 2 0 0 7 -08 relevan t to Assessmen t Year 20 0 8 -0 9 in qu estio n . Th u s d u e d ate fo r fil in g o f retu rn o f in co me fo r Assessmen t Yea r 2 00 8 -0 9 h ad n eith er ex p ired n o r th e assessee fi led an y retu rn p rio r to search . Th e case o f th e assesse e th u s fa ll s with in th e p u rview o f ex p ression ‘sp ecified p rev io u s y ear’ con temp l at ed u n d er Sect io n 2 7 1 AAA o f th e Act. Hen ce, th e u n d isc lo sed in co me b y way o f d ifferen ce in clo s in g sto ck an d d isallo wan ces o f ex p enses o n th e b asis o f seized ma teri al co u ld cu lmin ate in p en al act io n u nd er th e sp ecific p ro v isio n p ro v id ed u n d er Sectio n 2 71 AAA o f th e Act mean t fo r su ch situ at io n . Sectio n 2 7 1 AAA seek s to imp o se p enalty wh ere I.T.A. No.6313/DEL/2019 3 u n d isclo sed in co me i s d etec ted d u rin g th e co u rse o f search in it ia ted u n d er Sectio n 1 3 2 o f th e Act o n o r aft er 0 1 .0 6 .2 00 7 wh ich co nd itio n h as b een fu lfil led . T h e retu rn o f in co me is n eith er fi led n o r d u e d ate fo r fu rn ish in g th e retu rn o f in co me h as ex p ired o n th e d ate o f se ar ch , an d th erefo re, th e case o f th e ass essee a lso fa lls wi th in th e s weep o f ‘sp ecifie d p rev iou s y ear’. Hen ce, th e Assessin g Offic er co u ld n o t tak e reso rt to Sec tio n 2 7 1 (1 )(c) in stead o f Se ct io n 2 71 AAA o f th e Act p ro v id in g co n cessio n al trea tmen t to asses see in th e situ a t i o n as th e assessee is p laced h erein . Hen ce, th e act io n o f th e Rev en u e in imp o sing p en alty u n d er Sectio n 2 7 1(1 )(c) can n o t b e co u n ten an ced in la w. We th u s fin d mer it in th e p l ea o f th e ass essee fo r can ce l lat io n o f p en alty in q u estio n . 6 . In th e resu l t, th e a p p eal o f th e asses s ee is a l lo wed . Order pronounced in the open Court on 18/07/2022. Sd /- Sd /- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /07/2022 Prabhat