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

ITA 7741/DEL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7160 (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: 2011-2012
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: SANJAY MEHRA F
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.7741/DEL./2017 ASSESSMENT YEAR 2011-2012 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. THE ASSESSEE FILED RETURN OF INCOME AT RS.1,91, 933/- THE A.O. CONSIDERED THE ISSUE OF DISALLOWANCE UNDER SECTION 14A OF THE I.T. ACT. THE ASSESSEE-COMPANY HAS SHOWN DIVIDEND 2 ITA.NO.7741/DEL./2017 RRP MANAGEMENT SERVICES PVT. LTD., NEW DELHI. INCOME OF RS.4,778/- AND CLAIMED AS EXEMPT UNDER SE CTION 10(34) OF THE I.T. ACT. THE A.O, HOWEVER, DID NOT ACCEPT THE CONTENTION OF ASSESSEE AND DISALLOWED RS.3,38,500/- . THE A.O. INITIATED THE PENALTY PROCEEDINGS ON THIS ADDITION VIDE SEPARATE ORDER LEVIED THE PENALTY AGAINST THE ASSESSEE. THE LD. CIT(A) DISMISSED THE APPEAL OF ASSESSEE. 3. LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET , SUBMITTED THAT QUANTUM APPEAL OF ASSESSEE HAS BEEN DECIDED BY THE TRIBUNAL VIDE ORDER DATED 19.04.2018 FOR A.Y . 2011-2012 IN ITA.NO.6321/DEL./2014. COPY OF THE ORDER IS PLAC ED ON RECORD, IN WHICH, THE TRIBUNAL RESTRICTED THE DISAL LOWANCE TO THE EXTENT OF EXEMPT INCOME OF RS.4,778/-. APPEAL OF AS SESSEE HAS BEEN ALLOWED PARTLY. COPY OF THE ORDER IS PROVIDED TO THE LD. D.R. WHO DID NOT DISPUTE THE SAME. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT PENALTY IS NOT LEVIABLE IN THE MATTER. TH E AUTHORITIES BELOW HAVE LEVIED THE PENALTY AGAINST THE ASSESSEE ON MAKING ADDITION OF RS.3,38,500/-. HOWEVER, THE ORDERS OF T HE 3 ITA.NO.7741/DEL./2017 RRP MANAGEMENT SERVICES PVT. LTD., NEW DELHI. AUTHORITIES BELOW HAVE BEEN SET ASIDE AND SUBSTANTI VE ADDITION HAVE BEEN DELETED. THE ASSESSEE PLEADED BEFORE THE AUTHORITIES BELOW THAT IT HAS EARNED DIVIDEND INCOME OF RS.4,77 8/- ONLY. THE EXPLANATION OF ASSESSEE WAS NOT ACCEPTED BY THE AUTHORITIES BELOW. THE TRIBUNAL, HOWEVER, RESTRICTED THE ADDITI ON TO THE AMOUNT OF DIVIDEND INCOME, WHICH WAS ALREADY DECLAR ED BY THE ASSESSEE IN THE RETURN OF INCOME AND THE MATERIAL W AS PRODUCED AT THE ASSESSMENT STAGE. THEREFORE, ASSESSEE DISCLO SED ALL THE PARTICULARS TO THE REVENUE, THEREFORE, IT IS NOT A CASE OF CONCEALMENT OF INCOME OR FURNISHING INACCURATE PART ICULARS OF INCOME. THE SUBSTANTIAL ADDITION HAVE BEEN DELETED BY THE TRIBUNAL ON MERIT. THEREFORE, THE FOUNDATION FOR LE VY OF PENALTY HAVE GONE AND AS SUCH, IT IS NOT A FIT CASE FOR LEV Y OF THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT. I, ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE PENA LTY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. 4 ITA.NO.7741/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.