DCIT, New Delhi V. M/s. Nanda Mint & Pine Chemicals Ltd., New Delhi

ITA 6753/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4118 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S KRISHNAN
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO.6753/DEL/2015 ASSESSMENT YEAR : 2009-10 DCIT, CIRCLE- 17(2), NEW DELHI. VS. NANDA MINT & PINE CHEMICALS LTD., MUNSHI NIKETAN, 1/10, ASAF ALI ROAD, NEW DELHI. PAN : AACCN0965G (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI AMIT JAIN, SR.DR ASSESSEE BY : SHRI S. KRISHNAN, ADV. DATE OF HEARING : 11-01-2018 DATE OF PRONOUNCEMENT : 16-01-2018 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 23.10.2015 OF CIT(A)- 20, NEW DELHI RELATING TO ASS ESSMENT YEAR 2009-10. 2. LEVY OF PENALTY OF RS.27,54,119/- BY THE ASSESSI NG OFFICER U/S 271(1)(C) WHICH WAS DELETED BY THE LD. CIT(A) IS THE ONLY ISS UE RAISED BY THE REVENUE IN THE GROUNDS OF APPEAL. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF ESSENTIAL OILS, ME NTHOL SOLUTIONS, DMO AND 2 ITA NO.6753/DEL/2015 MENTHOL. IT FILED ITS RETURN OF INCOME ON 29.09.20 09 DECLARING INCOME OF RS. NIL. THE ASSESSING OFFICER COMPLETED THE ASSESSMEN T U/S 143(3) ON 30.11.2011 DETERMINING THE TOTAL INCOME AT RS.72,39,100/- WHER EIN HE HAD MADE DISALLOWANCE OF EXCISE DUTY REFUND OF RS.79,100/- A ND DISALLOWED THE DEDUCTION U/S 80IB OF RS.76,868/-. THE ASSESSEE FILED AN APP EAL BEFORE THE LD. CIT(A), WHO UPHELD THE ABOVE DISALLOWANCE MADE BY THE ASSES SING OFFICER. IN THE MEANTIME, THE ASSESSING OFFICER ISSUED PENALTY NOTI CE U/S 271(1)(C) OF THE I.T. ACT. REJECTING THE VARIOUS EXPLANATIONS GIVEN BY T HE ASSESSEE, HE LEVIED PENALTY OF RS.27,54,119/- ON ACCOUNT OF ABOVE TWO ADDITIONS /DISALLOWANCES. 4. THE ASSESSEE FILED THE APPEAL BEFORE THE TRIBUNA L AGAINST THE QUANTUM ADDITION. THE TRIBUNAL VIDE ITA NO.6192/DEL/2012 O RDER DATED 08.04.2016 FOR ASSESSMENT YEAR 2009-10 ALLOWED THE APPEAL FILED BY THE ASSESSEE HOLDING THAT THE CENTRAL EXCISE DUTY REFUND DUE TO THE ASSESSEE IS PART OF THE PROFIT DERIVED FROM THE INDUSTRIAL UNDERTAKING AND, THEREFORE, THE ASSESSEE WAS ELIGIBLE FOR DEDUCTION U/S 80IB ON THE SAID REFUND. 5. THE APPEAL FILED BY THE REVENUE AGAINST THE ORDE R OF THE TRIBUNAL HAS BEEN DISMISSED BY THE HONBLE DELHI HIGH COURT IN I TA NO.677 OF 2016 AND 680 OF 2016 BOTH ORDER DATED 23.09.2016. SINCE THE VERY BASIS ON WHICH PENALTY HAS BEEN LEVIED DOES NOT SURVIVE IN VIEW OF THE DEC ISION OF THE TRIBUNAL AS WELL AS THE HONBLE HIGH COURT, THEREFORE, PENALTY DOES NOT SURVIVE. ACCORDINGLY, 3 ITA NO.6753/DEL/2015 THE ORDER OF THE LD. CIT(A) IS SET-ASIDE AND THE AS SESSING OFFICER IS DIRECTED TO CANCEL THE PENALTY. THE GROUNDS RAISED BY THE ASSE SSEE ARE ACCORDINGLY ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16 TH JANUARY, 2018. SD/- SD/- (BEENA A. PILLAI) (R. K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16-01-2018. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI