Smt. Cotlon Indai Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 88/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3665 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT JAIN SENIOR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH D DD D : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA ITAITA ITA NO NONO NO . .. . 88/DEL/2016 88/DEL/2016 88/DEL/2016 88/DEL/2016 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., GOENKA HOUSE, GOENKA HOUSE, GOENKA HOUSE, GOENKA HOUSE, 43, DDA COMMERCIAL 43, DDA COMMERCIAL 43, DDA COMMERCIAL 43, DDA COMMERCIAL C CC COMPLEX, OMPLEX, OMPLEX, OMPLEX, ZAMRUDPUR, ZAMRUDPUR, ZAMRUDPUR, ZAMRUDPUR, KAILASH COLONY, KAILASH COLONY, KAILASH COLONY, KAILASH COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACC0052F. PAN : AAACC0052F. PAN : AAACC0052F. PAN : AAACC0052F. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), 1(1), 1(1), 1(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI AMIT JAIN, SENIOR DR. DATE OF HEARING : 15.01.2018 15.01.2018 15.01.2018 15.01.2018 DATE OF PRONOUNCEMENT : 31.01.2018 31.01.2018 31.01.2018 31.01.2018 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-2, NEW DELHI DATED 18 TH SEPTEMBER, 2015. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS AGAINS T THE LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 A MOUNTING TO `99,615/-. 3. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MAT ERIAL PLACED BEFORE US. WE FIND THAT THE PENALTY HAS BEEN LEVIE D BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION ON THE GROUND THAT THE PLANT IN RESPECT OF WHICH THE DEPRECIATION WAS CLAIMED, WAS A CLOSED UNIT. IN OUR OPINION, ON THE AFORESAID FACT S, THE DECISION OF ITA-88/DEL/2016 2 HONBLE APEX COURT IN THE CASE OF CIT VS. RELIANCE PETROPRODUCTS CIT VS. RELIANCE PETROPRODUCTS CIT VS. RELIANCE PETROPRODUCTS CIT VS. RELIANCE PETROPRODUCTS PVT.LTD. PVT.LTD. PVT.LTD. PVT.LTD. (2010) 322 ITR 158 (SC) WOULD BE SQUARELY APPLIC ABLE, WHEREIN THEIR LORDSHIPS HELD AS UNDER :- WHERE THERE IS NO FINDING THAT ANY DETAILS SUPPLIE D BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271(1)(C). A MERE MAKING OF A CLAIM, WHICH IS NOT SUSTAINABLE IN LAW, BY ITSELF, WILL NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS REGARDI NG THE INCOME OF THE ASSESSEE. SUCH A CLAIM MADE IN THE R ETURN CANNOT AMOUNT TO FURNISHING INACCURATE PARTICULARS. 4. MERELY BECAUSE THE CLAIM OF THE ASSESSEE FOR DEP RECIATION IS DISALLOWED, IT DOES NOT AMOUNT TO EITHER CONCEALMEN T OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. IN VIEW OF THE ABOVE, WE, RESPECTFULLY FOLLOWING THE ABOVE DECISION OF HO NBLE APEX COURT, CANCEL THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 31.01.2018 . SD/- SD/- (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER PRESIDENT PRESIDENT PRESIDENT PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., M/S COTLON INDIA PVT.LTD., GOENKA HOUSE, 43, DDA COMMERCIAL COMPLEX, GOENKA HOUSE, 43, DDA COMMERCIAL COMPLEX, GOENKA HOUSE, 43, DDA COMMERCIAL COMPLEX, GOENKA HOUSE, 43, DDA COMMERCIAL COMPLEX, ZAMRUDPUR, KAILASH COLONY, NEW DELHI. ZAMRUDPUR, KAILASH COLONY, NEW DELHI. ZAMRUDPUR, KAILASH COLONY, NEW DELHI. ZAMRUDPUR, KAILASH COLONY, NEW DELHI. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR