ACIT, New Delhi V. M/s. Indo Arab Air Services, New Delhi

ITA 830/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5446 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 11-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: RAHUL CHOURASIYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SMT. BEENA A. PILLAI , JM IT A NO. 830 /DEL/201 5 : ASSTT. YEAR : 2002 - 03 ACIT, CENTRAL CIRCLE - 0 7 , NEW DELHI VS M/S INDO ARAB AIR SERVICES, 118, ANSAL BHAWAN, 16, KASTURBA GANDHI MARG, NEW DELHI - 110001 (APPELLANT) (RESPONDENT) PAN NO. AAAFI6471P ASSESSEE BY : SH. RAHUL CHOURASIYA, CA REVENUE BY : SH. S. L. ANURAGI , SR. DR DATE OF HEARING : 0 2 .0 5 .201 8 DATE OF PRONOUNCE MENT : 02 .05 .201 8 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 27.11.2014 OF LD. C IT(A) - 24, NEW DELHI 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THE ORDER OF LD. CIT(A) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE PENALTY OF RS.17,53,830/ - IMPOSED BY AO U/S 271(1)(C) OF THE I.T. ACT, 1961. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY/ALL GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED ITA NO . 830 /DE L/201 5 INDO ARAB AIR SERVICES 2 PENALTY WAS LEVIED , HAS ALREADY BEEN DELETED BY THE ITAT DELHI BENCH C , NEW DELHI VIDE ORDER DATED 18.06.2014 IN ITA NOS. 5415 & 5612/DEL/2012 FOR THE ASSESSMENT YEAR 2002 - 03 (COPY OF THE SAID ORDER W AS FURNISHED WHICH IS PLACED ON RECORD). IT WAS STATED THAT SINCE THE QUANTUM ADDITIONS HAVE BEEN QUASHED BY THE ITAT VIDE THE AFORESAID ORDER , THERE WOULD BE NO GROUND FOR SUSTAINING THE PENALTY LEVIED BY THE AO. IT WAS FURTHER STATED THAT THE AFORESAID ORDER DATED 18.06.2014 HAS BEEN CONFIRMED BY THE HON BLE JURISDICTIONAL HIGH C OURT IN ITA NOS. 292 & 299/2015 VIDE ORDER DATED 20.10.2015 (COPY OF THE SAID ORDER WAS FURNISHED WHICH IS PLACED ON RECORD) . 4. IN HIS RIVAL SUBMISSIONS, LD. SR. DR COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 5 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE ADDIT IONS ON THE BASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED , HAD ALREADY BEEN DELETED BY ITAT DELHI BENCH C , NEW DELHI VIDE ORDER DATED 18.06.2014 IN ITA NOS. 5415 & 5612/DEL/2012 FOR THE ASSESSMENT YEAR 2002 - 03 . THEREFORE, THE IMPUGNED PENAL TY U/S 271(1) (C) OF THE ACT IS N OT LEVIABLE. 6. ON A SIMILAR ISSUE, THE HON BLE SUPREME COURT IN THE CASE OF K. C. BUILDERS & OTHERS VS ACIT (2004) 265 ITR 562 HELD AS UNDER: WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY FOR CONCEALM ENT IS LEVIED, ARE ITA NO . 830 /DE L/201 5 INDO ARAB AIR SERVICES 3 DELETED, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AND, THEREFORE, IN SUCH A CASE NO PENALTY CAN SURVIVE AND THE PENALTY IS LIABLE TO BE CANCELLED. ORDINARILY, PENALTY CANNOT STAND IF THE ASSESSMENT ITSELF IS SET ASIDE. 7. WE THEREFORE, BY KEEPING IN VIEW THE RATIO LAID DOWN BY THE HON BLE SUPREME COURT IN THE AFORESAID REFERRED TO CASE, DO NOT SEE ANY MERIT IN THIS APPEAL OF THE DEPARTMENT . 8 . IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED. ( ORDER P RON OUNCED IN THE COURT ON 02 /0 5 / 201 8 ) SD/ - SD/ - ( BEENA A. PILLAI ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02 /05 /2018 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR