RRP Management Services Pvt. Ltd., New Delhi V. ACIT, Central Circle- 30, New Delhi

ITA 7740/DEL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7168 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: SANJAY MEHRA F
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.7740/DEL./2017 ASSESSMENT YEAR 2010-2011 M/S. RRP MANAGEMENT SERVICES PVT. LTD., 14/5, GROUND FLOOR, OLD RAJINDER NAGAR, NEW DELHI 110060 PAN AAACR6246A VS. THE ACIT, CENTRAL CIRCLE-30, ROOM NO.320, ARA CENTRE, JHANDEWALAN EXTENSION, NEW DELHI - 110 055. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SANJAY MEHRA, F.C.A. FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 0 4 .0 7 .2018 DATE OF PRONOUNCEMENT : 05 .0 7 .2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-25, DELHI, DATED 29.09. 2017, FOR THE A.Y. 2010-2011, CHALLENGING THE LEVY OF PENALTY UND ER SECTION 271(1)(C) OF THE I.T. ACT, 1961. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT IN THIS CASE ASSESSMENT UNDER SECTION 143(3) WAS COMPLETED ON 26 .02.2013 AT AN INCOME OF RS.40,46,015/- AS AGAINST THE RETUR NED LOSS OF 2 ITA.NO.7740/DEL./2017 RRP MANAGEMENT SERVICES PVT. LTD., NEW DELHI. RS2,41,350/-. DURING THE COURSE OF ASSESSMENT PROCE EDINGS IT WAS FOUND THAT ASSESSEE HAS CLAIMED LOSS ON JOBBING OF RS.8,294/-. THE AO DISALLOWED THE SAME BEING OF SPE CULATIVE NATURE. FURTHER ON GOING THROUGH THE SALE PURCHASE OF SHARES, THE AO FOUND THAT NET RESULT OF THIS COMES TO A LOS S OF RS.40,26,914/-. THE AO BY INVOKING THE PROVISIONS O F SECTION 73 TREATED IT AS SPECULATIVE AND DISALLOWED THE SAM E. THE AO FURTHER DISALLOWED A SUM OF RS.2,46,130/- U/S 14A O F THE ACT. THE LD. CIT(A) CONFIRMED THE ADDITIONS. THE A.O. VI DE SEPARATE ORDER LEVIED THE PENALTY UNDER SECTION 271(1)(C) OF THE I.T. ACT WHICH IS CONFIRMED BY THE LD. CIT(A) BY DISMISSING THE APPEAL OF ASSESSEE. 3. I HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES. 4. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT THE APPEAL OF ASSESSEE ON QUANTUM AD DITION HAVE BEEN DECIDED BY ITAT, SMC-BENCH IN ITA.NO.5289/DEL./2014 FOR THE ASSESSMENT YEAR UNDER APPEAL 3 ITA.NO.7740/DEL./2017 RRP MANAGEMENT SERVICES PVT. LTD., NEW DELHI. I.E., 2010-2011 VIDE ORDER DATED 21.03.2018. COPY O F THE ORDER IS PLACED ON RECORD. HE HAS SUBMITTED THAT THE TRIB UNAL RESTORED THE ADDITION OF RS.40,26,914/- TO THE A.O. WITH CER TAIN DIRECTIONS, HOWEVER, THE ADDITION OF RS.2,46,130/- UNDER SECTION 14A HAVE BEEN DELETED. COPY OF THE ORDER IS PROVIDED TO THE LD. D.R. WHO IS NOT DISPUTED THE SAME. 5. IN THIS VIEW OF THE MATTER, IT IS CLEAR THAT ON E OF THE ADDITION IS RESTORED TO THE FILE OF A.O. AND ANOTHE R ADDITION HAVE BEEN DELETED. THEREFORE, THERE IS NO BASIS LEFT FOR REVENUE TO LEVY PENALTY AGAINST THE ASSESSEE AT THIS STAGE. THE FOU NDATION OF LEVY OF PENALTY HAS GONE AT THIS STAGE. THEREFORE, PENALTY ORDER WOULD NOT SURVIVE. I, ACCORDINGLY, SET ASIDE THE OR DERS OF THE AUTHORITIES BELOW AND CANCEL THE PENALTY. HOWEVER, THE A.O. IS AT LIBERTY TO TAKE ACTION AS PER LAW FOR INITIATING THE PENALTY PROCEEDINGS ON DECIDING THE ADDITION OF RS.40,26,91 4/- AS IS RESTORED TO HIM BY THE TRIBUNAL, AS PER LAW, IF SO ADVISED, IN ACCORDANCE WITH LAW. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 4 ITA.NO.7740/DEL./2017 RRP MANAGEMENT SERVICES PVT. LTD., NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) DELHI, DT. 05 TH JULY, 2018. JUDICIAL MEMBER VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.