DCIT, Cir. 3(1), V. BLB Ltd.,

MA 322/DEL/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4903 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2001-2002
• Appeal Filed On: 28-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA SRIVASTAVA
• Keywords: Initiation of penalty proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI R.P.TOLANI, JM AND SHRI R.C.SHARMA, AM MISCELLANEOUS APPLICATION NO.322/DEL/2009 (IN ITA NO.4767/DEL/2005) ASSESSMENT YEAR : 2001-02 DY.COMMISSIONER OF INCOME TAX, CIRCLE-3(1), NEW DELHI. VS. M/S BLB LIMITED, 4764/23A, ANSARI ROAD, DARYA GANJ, NEW DELHI. PAN NO.AAACB0184H. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.LEENA SRIVASTAVA, DR. RESPONDENT BY : SHRI K.SAMPATH, ADVOCATE. ORDER PER R.C.SHARMA, AM : THIS MISCELLANEOUS APPLICATION IS FILED BY THE REV ENUE FOR RECALLING THE ORDER OF THE TRIBUNAL DATED 27.11.2006 UNDER THE PR OVISIONS OF SECTION 254(2) OF THE IT ACT. 2. THROUGH THIS PETITION, IT WAS CONTENDED BY THE D EPARTMENT THAT VIDE ORDER DATED 27.11.2006, THE APPEAL FILED BY THE ASSESSEE WITH REGARD TO PENALTY IMPOSED U/S 271(1)(C) WAS DELETED BY THE TRIBUNAL. IT WAS FURTHER SUBMITTED THAT THE FINANCE ACT, 2009 HAS RETROSPECTIVELY AMENDED SECTI ON 271(1) FROM 1.4.1989 WHEREBY IF ANY ADDITION OR DELETION IS MADE BY COMP UTING TOTAL INCOME OR LOSS IF ANY IN THE ORDER OF REASSESSMENT AND SUCH ORDER CON TAINS DIRECTION FOR INITIATING PENALTY PROCEEDINGS, SUCH AN ORDER SHALL BE DEEMED TO CONSTITUTE SATISFACTION OF THE AO FOR INITIATION OF PENALTY PROCEEDINGS UNDER SUB- SECTION (1) OF THE ACT. ACCORDINGLY, IT WAS PRAYED THAT THE ORDER PASSED BY THE TRIBUNAL SHOULD BE RECONSIDERED. MA-322/DEL/2009 2 3. ON THE OTHER HAND, IT WAS CONTENDED BY THE LEARN ED AR THAT ORDER DATED 27.11.2006 WAS PASSED BY THE TRIBUNAL AFTER CONSIDE RING THE RELEVANT PROVISIONS OF THE LAW EXISTING AS ON THE DATE OF IMPOSITION OF PE NALTY AND ANY SUBSEQUENT AMENDMENT WILL NOT RENDER THE ORDER OF THE TRIBUNAL AS LIABLE TO RECTIFICATION U/S 254(2) OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFU LLY GONE THROUGH THE ORDER OF THE TRIBUNAL AND THE MISCELLANEOUS PETITION FILE D BY THE REVENUE. WE FOUND THAT AFTER CONSIDERING VARIOUS JUDICIAL PRONOUNCEME NTS AND RELEVANT PROVISIONS OF THE LAW AS APPLICABLE AT THE TIME OF LEVY OF PENALT Y, THE TRIBUNAL HAS DELETED THE PENALTY. IN CASE OF IMPOSITION OF PENALTY, THE REL EVANT PROVISIONS OF LAW AS APPLICABLE AT THE TIME OF LEVY OF PENALTY IS TO BE SEEN AND NOT THE PROVISIONS AMENDED THEREAFTER. IN VIEW OF THE RELEVANT PROVIS IONS OF THE LAW AS APPLICABLE ON THE DATE OF IMPOSING PENALTY AND THE JUDICIAL PRONO UNCEMENTS CONSIDERED BY THE TRIBUNAL ON THE BASIS OF WHICH THE PENALTY HAS BEEN DELETED, WE DO NOT FIND ANY APPARENT MISTAKE IN THE ORDER OF THE TRIBUNAL WHICH CALLS FOR RECONSIDERATION U/S 254(2). FURTHERMORE, THE POWER OF TRIBUNAL U/S 254 (2) IS CONFINED TO RECTIFYING THE MISTAKE APPARENT FROM RECORD AND THE TRIBUNAL H AS NO POWER TO RECONSIDER THE DECISION ALREADY RENDERED WHICH REQUIRES DETAILED D ELIBERATIONS AND DISCUSSIONS. 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 25 TH AUGUST, 2010. SD/- SD/- (R.P.TOLANI) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 25.08.2010. VK. MA-322/DEL/2009 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR