Gee Cee Cycle Balls (Pvt.) Lttd., New Delhi V. ITO, New Delhi

ITA 6739/DEL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6335 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 08-03-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 22-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHAKANT SAHU
• Assessee Lawyers: PRABHAT AGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 1 , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SMT. BEENA PILLAI , JM IT A NO. 6739/DEL/2015 : ASSTT. YEAR : 200 1 - 0 2 GEE CEE CYCLE BALLS PVT . LTD., B - 378, NEW FRIENDS COLONY, NEW DELHI - 110048 VS ITO, WARD - 12(1), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A AA CG4036F ASSESSEE BY : SH. PRABHAT AGARWAL , CA REVENUE BY : SH. SUBHAKANT SAHU , SR. DR DATE OF HEARING : 08.03 . 201 6 DATE OF PRONOUNCE MENT : 28 .03 .201 6 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 23.10.2015 OF LD. CIT(A) - IV , NEW DELHI . 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE CONFIRMATION OF PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE ADDITION ON THE BASIS OF W HICH THE PENALTY U/S 271(1)(C) OF THE ACT WAS ITA NO . 6739 /DE L/2015 GEE CEE CYCLE BALLS PVT. LTD. 2 LEVIED BY THE AO HAS BEEN DELETED BY THE ITAT IN ITA NO. 867/DEL/2013 FOR THE ASSESSMENT YEAR 2001 - 02 VIDE ORDER DATED 30.10.2015 (COPY OF THE SAID ORDER WAS FURNISHED WHICH IS PLACED ON RECORD). THE LD. DR COU LD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 4 . AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND MATERIAL ON RECORD, IT IS NOTICED THAT THE AO FRAMED THE ASSESSMENT U/S 147/143(3) OF THE ACT ON 10.11.2008 BY MAK ING AN ADDITION OF RS.5,00,000/ - ON ACCOUNT OF CASH CREDIT AND ALSO INITIATED THE PENALTY PROCE EDINGS U/S 271(1)(C) OF THE ACT AND LEVIED THE PENALTY OF RS.1,97,750/ - WHICH WAS CONFIRMED BY THE LD. CIT(A). NOW THE SAID ADDITION MADE BY THE A O AND SUSTAINED BY THE LD. CIT(A) HAS BEEN DELETED BY THE ITAT VIDE AFORESAID REFERRED TO ORDER DATED 30.10.2015. THEREFORE, THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT WA S LEVIED IS NOW NOT INEXISTENCE, T HEREFORE, THE SAID PENALTY U/ S 271(1)(C) OF THE ACT DOES NOT SURVIVE. ON A SIMILAR ISSUE THE HON BLE SUPREME COURT IN THE CASE OF K.C BUILDERS VS ACIT 265 ITR 562 HELD AS UNDER: WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR ITA NO . 6739 /DE L/2015 GEE CEE CYCLE BALLS PVT. LTD. 3 CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. 4 . IN VIEW OF THE ABOVE, THE PENALTY LEVIED BY THE AO AND SUSTAINED BY THE L D. CIT(A) IS DELETED. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ( ORDER PRON OUNCED IN THE COURT ON 28 /03 / 2016 ) SD/ - SD/ - ( BEENA PILLAI ) ( N. K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 28 /03 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR