SHANTI CHEMSTEEL PVT. LTD., MUZAFFARANGAR V. DCIT, CIRCLE- 2 , MUZAFFARNAGAR

ITA 7054/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2818 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 05-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. K. N. CHARY, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.7054/DEL/2018 ASSESSMENT YEAR: 2013-14 SHANTI CHEMSTEEL PVT. LTD. C/O. DINESH MOHAN, ADVOCATE, 2 ANAND VIHAR, LANE NO.1, CIRCULAR ROAD, MUZAFFARNAGAR PAN NO. AAICS8818D VS DCIT CIRCLE-2 MUZAFFARNAGAR (APPELLANT) (RESPONDENT) APPELLANT BY SH.ANKIT GUPTA, ADVOCATE RESPONDENT BY SH. N. K. BANSAL, SR. DR. DATE OF HEARING: 25/10/2021 DATE OF PRONOUNCEMENT: 25/10/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL FILED BY THE ASSESSEE IS PREFERRED AGA INST THE ORDER OF THE CIT(A), MUZAFFARNAGAR DATED 31.08.2018 FOR A.Y. 2013-14. 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE AS SESSEE IS THAT THE CIT(A) ERRED IN CONFIRMING THE PENALTY OF RS.32500/- LEVIED BY THE AO U/S. 271 (1) (C) OF THE ACT. 2 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASS ESSMENT ORDER DATED 31.03.2016 FRAMED U/S.143 (3) OF THE ACT. THE AO, INTERALIA MADE ADDITION OF RS.496000/- ON ACCOUNT OF PENALTY INTEREST PAID TO PUNJAB NATIONAL BANK AND RS.1,05,000/- ON ACCOUN T OF FEE PAID TO ROC. THE PENALTY PROCEEDINGS WERE SEPARATE LY INITIATED. THE RELEVANT FINDINGS IN THE PENALTY ORDER READ AS UNDER :- 4. FROM THE ABOVE IT CAN BE SEEN THAT THE AO WAS NO T CERTAIN WHETHER HE IS INITIATING PENALTY PROCEEDINGS FOR CO NCEALING THE PARTICULARS OF INCOME OR FURNISHING INACCURATE PART ICULARS OF INCOME. 5. WE ARE OF THE CONSIDERED VIEW THAT DISALLOWANCE OF EXPENDITURE WOULD NOT AMOUNT TO CONCEALMENT OF INCO ME OR FURNISHING INACCURATE PARTICULARS OF INCOME. THE RA TIO LAID-DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF RELIANC E PETRO PRODUCTS 322 ITR 158 SQUARELY APPLY ON THE FACTS OF THE CASE IN HAND, THEREFORE, WE DO NOT FIND ANY MERIT IN THE LE VY OF PENALTY U/S. 271 (1) (C) OF THE ACT AND THE SAME IS DIRECTE D TO BE DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 3 4. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRES ENCE OF BOTH REPRESENTATIVES ON 25.10.2021. SD/- SD/- (K. NARSIMHA CHARY) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEM BER *NEHA* DATE:-25.10.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI DATE OF DICTATION 25.10.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 25.10.2021 DATE ON WHICH THE TYPED DRAFT IS PLACE D BEFORE THE OTHER MEMBER 25.10.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 25.10.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25.10.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 25.10.2021 DATE ON WHICH THE FINA L ORDER IS UPLOADED ON THE WEBSITE OF ITAT 25.10.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 25.10.2021 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER