Pushpak Structures & Engineers P.Ltd, New Delhi V. ITO, Ward-20(2), New Delhi

ITA 9117/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1710 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 26-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH SINGH
• Assessee Lawyers: ASHISH GEOL
• Keywords: Unexplained expenditure; Reassessment proceedings
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY-A: NEW DELHI BEFORE, SHRI G. S. PANNU, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMB ER ITA NO.9117/DEL/2019 (ASSESSMENT YEAR-2009-10) M/S. PUSHPAK STRUCTURES AND ENGINEERS PRIVATE LIMITED, 97 DSIDC SHED, OKHLA INDUSTRIAL AREA, PHASE-1, NEW DELHI-110020 PAN AAFCP 1887J VS. INCOME TAX OFFICER WARD-20(2) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY MR. ASHISH GEOL, CA RESPONDENT BY SH. JAGDISH SINGH, SR.DR DATE OF HEARING 20.03.2020 DATE OF PRONOUNCEMENT 13.05.2020 ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER DATED 24.09.2019 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-7, NEW DELHI {CIT (A)} FOR ASSESSMENT YEAR 2009-10, WHER EIN VIDE THE IMPUGNED ORDER, THE LD. CIT (A) HAS UPHELD THE IMPO SITION OF PENALTY OF RS.12,60,000/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER CALLED AS THE ACT). 2.0 BRIEF FACTS OF THE CASE ARE THAT THE RETURN OF INCOME WAS FILED DECLARING INCOME AT RS.NIL AND THE ASSESSMENT WAS CO MPLETED AT AN 2 ITA NO.9117/DEL/2019 PUSHPAK STRUCTURE & EN GINEERS P. LTD. VS. ITO INCOME OF RS.40,74,900/- AFTER MAKING ADDITION ON A CCOUNT OF ALLEGED UNEXPLAINED SHARE APPLICATION MONEY AMOUNTING TO RS .39,95,000/- AND ALLEGED UNEXPLAINED EXPENDITURE ON ACCOUNT OF COMMI SSION AMOUNTING TO RS.79,900/-. SUBSEQUENTLY, THE IMPUGNED PENALTY WAS IMPOSED AND THE IMPOSITION OF PENALTY WAS UPHELD BY THE LD. CIT (A). NOW, THE ASSESSEE IS BEFORE THIS TRIBUNAL CHALLENGING THE UPHOLDING OF T HE PENALTY. 3.0 AT THE OUTSET, THE LD. AUTHORIZED REPRESENTATI VE SUBMITTED THAT THE ASSESSEES APPEAL AGAINST THE QUANTUM ADDITION HAS BEEN ALLOWED BY THE ITAT AND, THEREFORE, THE PENALTY DOES NOT SURVIVE. HE PLACED ON RECORD COPY OF THE ORDER OF THE ITAT IN THE QUANTUM APPEAL BEARING ITA NO.6925/DEL/2017 WHEREIN VIDE ORDER DATED 19.12.2019 , THE RE- ASSESSMENT PROCEEDINGS INITIATED BY THE ASSESSING O FFICER WERE QUASHED. 4.0 THE LD SR. DEPARTMENTAL REPRESENTATIVE FAIRLY ACCEPTED THAT SINCE THE REASSESSMENT PROCEEDINGS HAD BEEN QUASHED BY TH E ITAT, THE CONSEQUENTIAL PENALTY IMPOSED U/S 271(1)(C) OF THE ACT WOULD NOT SURVIVE. 5.0 HAVING HEARD BOTH THE PARTIES AND AFTER HAVING GONE THROUGH THE ORDER OF THE CO-ORDINATE BENCH IN ASSESSEES OWN CAS E IN THE QUANTUM APPEAL IN ITA NO.6925/DEL/2017, WE AGREE WITH THE CON TENTION OF THE LD. 3 ITA NO.9117/DEL/2019 PUSHPAK STRUCTURE & EN GINEERS P. LTD. VS. ITO AUTHORIZED REPRESENTATIVE THAT SINCE THE REASSESSME NT HAS BEEN QUASHED, PENALTY IMPOSED DOES NOT SURVIVE. ACCORDINGLY, WE S ET ASIDE THE ORDER OF THE LD. CIT (A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY. 6.0 IN THE FINAL RESULT, THE APPEAL OF THE ASSES SEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/05/2020. SD/- SD/- (G.S.PANNU) (SUDHANSHU SRIVASTAVA) VICE PRESIDENT JUDICIAL MEM BER DATED:13/05/2020 PK/PS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI