ACIT, Central Circle- 7, New Delhi V. Devyani Foods Industries Pvt. Ltd., New Delhi

ITA 7213/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4314 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 01-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Depreciation; Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

1 ITA NO. 7213/DEL/2017 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 7213/DEL/2017 ( A.Y 2012-13) (THROUGH VIDEO CONFEREN CING) ACIT CENTRAL CIRCLE-7 ROOM NO. 330, ARA CENTRE, JAHADEWALAN EXTENSION, NEW DELHI (APPELLANT) VS DEVYANI FOODS INDUSTRIES PVT. LTD. F-27, OKHLA INDUSTRIAL AREA, PHASE-1 NEW DELHI PAN: AABCD7572B (RESPONDENT) APPELLANT BY MS. NIDHI SRIVASTAVA, CIT, DR RESPONDENT BY SH. RAJAT JAIN, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 25/09/2017 PASSED BY CIT(A)- 24, NEW DELHI FOR ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE ORDER OF THE LD.CIT(A) IS NOT CORRECT IN LA W AND FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW IN DELETING THE PENALTY OF RS.2,13,86,841/- IMPOSED B Y ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. DATE OF HEARING 09.02.2021 DATE OF PRONOUNCEMENT 09.02.2021 2 ITA NO. 7213/DEL/2017 3. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE I NCOME TAX ACT, 1961 VIDE ORDER DATED 28/03/2014 AT TOTAL INCOME OF RS. 20,04,15,670/- AGAINST THE RETURNED LOSS AMOUNTING TO RS.11,69,00806/- AFTER M AKING ADDITION OF RS. 18,42,70,000/- ON ACCOUNT OF 50% OF AD-HOC DISALLOW ANCE UNDER THE HEAD OTHER EXPENSES AS THE ASSESSEE FAILED TO FURNISH AN Y DETAILS ALONG WITH DOCUMENTARY EVIDENCE AND RS. 13,30,46,472/- ON ACCO UNT OF 50% AD-HOC DISALLOWANCE OF DEPRECIATION. THE PENALTY PROCEEDI NGS WERE INITIATED U/S 271(1)(C) OF THE INCOME TAX ACT FOR CONCEALMENT OF INCOME. THE ASSESSING OFFICER PASSED THE PENALTY ORDER VIDE ORDER DATED 3 0/03/2017 THEREBY IMPOSING THE PENALTY OF RS. 2,13,86,841/-. 4. BEING AGGRIEVED BY THE PENALTY ORDER, THE ASSESS EE FILED BEFORE THE CIT(A). THE CIT(A) DELETED THE PENALTY AND ALLOWED THE APPE AL OF THE ASSESSEE. 5. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE PENALTY. 6. THE LD. AR SUBMITTED THAT THE QUANTUM APPEAL FIL ED BEFORE THE TRIBUNAL HAS BEEN SET ASIDE TO THE FILE OF THE ASSESSING OFF ICER. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE QUANTUM APPEAL HAS BEEN DECIDED BY THE TRIBUNAL AND REMANDED BACK TO THE FI LE OF THE ASSESSING OFFICER, THEREFORE, IT WILL BE APPROPRIATE TO REMAND BACK TH E PENALTY ISSUE AS WELL TO THE FILE OF THE ASSESSING OFFICER. NEEDLESS TO SAY, TH E ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTI CE. THUS, THE APPEAL OF THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 3 ITA NO. 7213/DEL/2017 8. IN RESULT, THE APPEAL OF THE REVENUE IS PARTLY A LLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09 TH DAY OF FEBRUARY, 2021 IN PRESENCE OF BOTH THE PARTIES. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 09/02/2021 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI