BRV Developers Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 6764/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3961 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2004-2005
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Accommodation entries
• Section: 148

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SH. G.D.AGRAWAL, HONBLE PRESIDENT AND SH.K.N.CHARRY, JUDICIAL MEMBER ITA NO. 6764/DEL/2015 (ASSESSMENT YEAR: 2 004-05) APPELLANT BY SH. NIPUN MITTAL, CA RESPONDENT BY SH. ARUN KUMAR YADAV, SR.DR DATE OF HEARING 20 .0 9 .2017 DATE OF PRONOUNCEMENT 0 9 . 1 0 .2017 ORDER PER K.N.CHARRY, JUDICIAL MEMBER THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST EH DISMISSAL OF APPEAL NO.655/14-15 VIDE ORDER DATED 23.10.2015 PAS SING BY THE COMMISSIONER OF INCOME TAX (APPEAL) [IN SHORT CIT(A)]-2, NEW DEL HI FOR 2004-05 ASSESSMENT YEAR WHERE LD. CIT(A) CONFIRMED THE PENALTY LEVIED AGAIN ST THE ASSESSEE U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE THAT THE ASSESSMENT U/S 143(3)/147 OF THE ACT WAS COMPLETED ON 23.12.2011 AT AN INCOME OF RS.20,00,000/- AS AGAINST THE INCOME OF RS.NIL ON THE GROUND THAT THE ASSESSE E RECEIVED ACCOMMODATION ENTRIES OF RS.20,00,000/- FROM TWO COMPANIES OF THE TARUN GOYAL GROUP. THE AO SIMULTANEOUSLY INITIATED PROCEEDINGS U/S 271(1)(C) OF THE ACT AND CONCLUDED THE SAME VIDE ORDER DATED 23.03.2015 WITH THE LEVY OF P ENALTY OF RS.7,17,500/-. THE BRV DEVELOP ERS PVT.LTD., 201, MEZZANINE FLOOR, C-52, VIVEK VIHAR, NEW DELHI-110095. PAN-AADCP3196J VS ITO, WARD-5(2), NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO. 6764/DEL/2015 PG. 2 APPEAL PREFERRED BY THE ASSESSEE AGAINST THE LEVY O F PENALTY WAS DISMISSED BY THE LD.CIT(A) BY WAY OF THE IMPUGNED ORDER HENCE THIS A PPEAL BY THE ASSESSEE CHALLENGING THE LEVY OF PENALTY. 3. AT THE OUTSET, LD.AR SUBMITTED THAT IN THE APPEA L PREFERRED BY THE ASSESSEE IN ITA NO.818/DEL/2014 CHALLENGING THE QUANTUM ADDITIO N OF RS.20,00,000/-, A CO-ORDINATE BENCH OF THIS TRIBUNAL DELETED THE ADDI TION DECLARING THE RE-ASSESSMENT PROCEEDINGS AS VOID AB INITIO ON THE GROUND OF ABSENCE OF VALIDITY OF SERVICE OF NOTICE U/S 148 OF THE ACT WITHIN THE STIPULATED PERIOD. H E, THEREFORE, SUBMITTED THAT THE PENALTY MAY ALSO BE DELETED. THERE IS NO DISPUTE B Y THE REVENUE AS TO THE QUASHING OF RE-ASSESSMENT PROCEEDINGS VIDE ORDER DATED 29.04 .2016 BY A CO-ORDINATE BENCH OF THIS TRIBUNAL. SINCE THE QUANTUM IS DELETED, TH E PENALTY CANNOT SURVIVE AS SUCH WHILE ALLOWING THIS APPEAL, WE DIRECT THE AO TO DEL ETE THE SAME. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09 TH OCTOBER, 2017. SD/- SD/- (G.D.AGRAWAL) (K.N.CHARRY) PRESIDENT JUDICIAL MEMBER *AMIT KUMAR* DATE:- 09.10.2017 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI