M/s. Ajay Industrial Corporation Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITSSA 28/DEL/2014

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 2880 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 24-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-01-2017
• Assessment Year: misc
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN SENIOR
• Keywords: Block assessment
• Section: 234B; 154

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 A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER IT(SS) A.NO.28/DEL/2014 IT(SS) A.NO.28/DEL/2014 IT(SS) A.NO.28/DEL/2014 IT(SS) A.NO.28/DEL/2014 BLOCK PERIOD : 1996 BLOCK PERIOD : 1996 BLOCK PERIOD : 1996 BLOCK PERIOD : 1996 - -- - 97 TO 2002 97 TO 2002 97 TO 2002 97 TO 2002 - -- - 03 0303 03 M/S AJAY INDUSTRIAL M/S AJAY INDUSTRIAL M/S AJAY INDUSTRIAL M/S AJAY INDUSTRIAL CORPORATION PVT.LTD., CORPORATION PVT.LTD., CORPORATION PVT.LTD., CORPORATION PVT.LTD., D DD D- -- -6, 6,6, 6, KALINDI COLONY, KALINDI COLONY, KALINDI COLONY, KALINDI COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 065. 110 065. 110 065. 110 065. PAN : AADCA9068N. PAN : AADCA9068N. PAN : AADCA9068N. PAN : AADCA9068N. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -39(1), 39(1), 39(1), 39(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJEEV KUMAR, CA. RESPONDENT BY : SHRI S.K. JAIN, SENIOR DR. DATE OF HEARING : 11.01.2017 11.01.2017 11.01.2017 11.01.2017 DATE OF PRONOUNCEMENT : 24.01.2017 24.01.2017 24.01.2017 24.01.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE BLOCK PERIOD 1 996-97 TO 2002-03 IS DIRECTED AGAINST THE ORDER OF LEARNED CI T(A)-XII, NEW DELHI DATED 19 TH FEBRUARY, 2014. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS WITH R EGARD TO CHARGING OF INTEREST U/S 234B OF THE INCOME-TAX ACT , 1961 WHEN THE ASSESSMENT WAS COMPLETED FOR THE BLOCK PERIOD U/S 1 58BC. 3. WE FIND THIS ISSUE TO BE SQUARELY COVERED IN FAV OUR OF THE ASSESSEE BY THE DECISION OF ITAT IN THE CASE OF SHR I AKHIL JAIN IN IT(SS) A.NO.26/DEL/2013, WHEREIN VIDE ORDER DATED 12 TH JUNE, 2015, THE ITAT HELD AS UNDER :- 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN THE INSTANT CASE, THE IT(SS) A.NO.28/D/2014 2 ASSESSMENT WAS COMPLETED UNDER CHAPTER XIV-B OF THE ACT U/S 158BC/245D(4) OF THE ACT. BY VIRTUE OF THE SPE CIAL PROVISIONS OF SECTION 158BF OF THE ACT, NO INTEREST U/S 234B OF THE ACT IS CHARGEABLE ON THE AMOUNT OF UNDISCLOS ED INCOME. THE PROVISIONS OF SECTION 158BF FOR READY REFERENCE IS REPRODUCED BELOW :- NO INTEREST UNDER THE PROVISIONS OF SECTION 234A, 234B OR 234C OR PENALTY UNDER THE PROVISIONS OF CLAUSE (C) OF SUB- SECTION (1) OF SECTION 271 OR SECTION 271A OR SECTI ON 271B SHALL BE LEVIED OR IMPOSED UPON THE ASSESSEE IN RES PECT OF UNDISCLOSED INCOME DETERMINED IN THE BLOCK ASSESSME NTS. WHEN CHARGING OF INTEREST U/S 234B OF THE ACT IS NO T PERMISSIBLE IN THE CASES OF BLOCK ASSESSMENT UNDER CHAPTER XIV-B OF THE ACT, BY VIRTUE OF SECTION 158B F, THE ASSESSING OFFICER HAD WRONGLY CHARGED INTEREST U/S 234B OF THE ACT. THE NON-LEVY OF INTEREST U/S 234B OF THE ACT, IN THE ORIGINAL ORDER OF THE ASSESSING OFFICER DATED 04.05 .2011, CANNOT BE STATED TO BE A MISTAKE APPARENT ON RECORD WARRANTING RECTIFICATION U/S 154 OF THE ACT. THERE FORE, THE CIT(A) IS JUSTIFIED IN QUASHING THE ORDER PASSED BY THE ASSESSING OFFICER U/S 154 OF THE ACT. IT IS ORDERE D ACCORDINGLY. 4. NO CONTRARY DECISION IS BROUGHT TO OUR KNOWLEDGE . IN VIEW OF THE ABOVE, WE, RESPECTFULLY FOLLOWING THE ABOVE DECISIO N OF ITAT, HOLD THAT NOT CHARGING OF INTEREST U/S 234B WAS NOT AN APPARE NT MISTAKE AND, THEREFORE, THE ASSESSING OFFICER WAS NOT JUSTIFIED IN CHARGING THE INTEREST BY INVOKING THE PROVISIONS OF SECTION 154. THE INTEREST CHARGED IS DELETED AND ASSESSEES APPEAL IS ALLOWED . 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 24.01.2017 . SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. IT(SS) A.NO.28/D/2014 3 COPY FORWARDED TO: - 1. APPELLANT : M/S AJAY INDUSTRIAL CORPORATION PVT.LTD., M/S AJAY INDUSTRIAL CORPORATION PVT.LTD., M/S AJAY INDUSTRIAL CORPORATION PVT.LTD., M/S AJAY INDUSTRIAL CORPORATION PVT.LTD., D DD D- -- -6, KALINDI COLONY, NEW DELHI 6, KALINDI COLONY, NEW DELHI 6, KALINDI COLONY, NEW DELHI 6, KALINDI COLONY, NEW DELHI 110 065. 110 065. 110 065. 110 065. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TA X, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -39(1), NEW 39(1), NEW 39(1), NEW 39(1), NEW DELHI. DELHI. DELHI. DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR