NCH INDIA PRIVATE LIMITED,CHENNAI V. DEPUTY COMMISSIONER OF INCOME TAX, DELHI

ITA 5140/DEL/2024

AI Insights

NCH India Pvt. Ltd. appealed against the order of the National Faceless Appeal Centre (NFAC) concerning the Assessment Year 2014-15, which involved several grounds related to the imposition of a penalty under section 270A of the Income Tax Act. The primary issues revolved around the jurisdiction of the penalty, the delay in filing the appeal, and the applicability of specific clauses under section 270A concerning underreporting of income. During the hearing, the assessee's representative indicated that the assessee no longer wished to pursue the appeal due to the decision to avail the Vivad Se Vishwas Scheme, which aims to resolve pending tax disputes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473155 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: MESHWANT KUMAR
• Keywords: Set aside; Transfer pricing; Reasonable cause; Principle of natural justice; Competent authority

Judgement Text

" ITA No.- 5140/Del/2024 NCH India Pvt. Ltd. Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘E’: NEW DELHI) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No:- 5140/Del/2024 (Assessment Year- 2017-18) NCH India Pvt. Ltd., 2C/ SIDCO Developed Plot , South Phase, 3rd Sector, 3rd Street, Ambattur Industrial Estate, Chennai-600058. Vs. Deputy Commissioner of Income Tax, Circle 16(1), C.R. Building I.P. Estate, New Delhi PAN No: AACCN5132B APPELLANT RESPONDENT Assessee by : Shri Meshwant Kumar, AR Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 27.02.2025 Date of Pronouncement : 27.02.2025 ORDER PER SUDHIR PAREEK, JM: This appeal by the Assessee against the order dated 13.08.2024 of National Faceless Appeal Centre (NFAC), [hereinafter referred to as “Ld. CIT(A)] pertaining to the Assessment Year 2014- 15. ITA No.- 5140/Del/2024 NCH India Pvt. Ltd. Page 2 of 5 1.1 The assessee has raised the following grounds of appeal: “1. For that the order of Commissioner of Income Tax (Appeals) is contrary to law. facts and circumstances of the case to the extent prejudicial to the interests of the appellant and at any rate is opposed to the principles of equity, natural Justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the penalty order of the Assessing Officer is without jurisdiction. 3. For that the Commissioner of Income Tax (Appeals) erred in not condoning the delay in filing the appeal before him. 4. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the appellant had sufficient reasonable cause for the delay in filing the appeal. 5. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the appellant could have derived no benefit by filing the appeal belatedly and that the same could not have been the intent of the appellant. 6. For that the penalty cannot be levied under a different clause than the clause for which the penalty proceedings were initiated. 7. For that the provisions of section 270A(9)(f) are not invocable in the facts and circumstances of the case. 8. For that the case of the appellant would not fall under underreporting as a result of misreporting of income. 9. For that the Assessing Officer failed to appreciate that the penalty proceedings are independent of assessment proceedings. 10. For that without prejudice to the above, the Assessing Officer erred in concluding that the case of the appellant would fall u/s.270A(9) (c) of the Income Tax Act. 11. For the provisions of section 270A(9)(c) are not invocable in the facts and circumstances of the case. 12. For that no penalty u/s.270A could be levied even for underreporting of income in respect of the addition of Rs. 17,08,638/- relating to adjustment of arms-length price by the Transfer Pricing Officer. ITA No.- 5140/Del/2024 NCH India Pvt. Ltd. Page 3 of 5 PRAYER For these grounds and such other grounds that may be raised, may be altered, amended or modified, with the leave of this respected authority before or during the hearing of the appeal, it is most humbly prayed that this respected authority may be pleased to: a) Set aside to the file of Commissioner of Income Tax (Appeals) to condone the delay and hear the case on merits and / or b) Quash the order imposing penalty u/s.270A and / or c) Delete penalty levied u/s.270A amounting to Rs. 10,54,084/- and / or d) Pass such other orders as this respected authority may deem if.” 2. We have heard the Ld. Representative of both the parties and perused the material available on record. 3. When the matter was called for hearing, the Ld. AR for the assessee stated that the assessee does not wish to pursue the present appeal due to the exercise of the option for availing of the VSV Scheme and, consequently, requested that the withdrawal of the appeal be granted. 4. The Ld. Sr. DR for the Revenue stated that he has no objection to withdraw the appeal as sought on behalf of the assessee. 5. In view of above fact, since the assessee has availed the benefit under Vivad Se Vishwas Scheme, 2024 to settle the matters, ITA No.- 5140/Del/2024 NCH India Pvt. Ltd. Page 4 of 5 therefore, the appeal of the assessee stands disposed of in terms thereof, subject to approval of the same by the competent authority. If at any stage the assessee finds that its declarations are not accepted by Department, the assessee is given liberty to recall this order. Appeal of the assessee is accordingly disposed of. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the Open Court on 27.02.2025 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27/02/2025. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 5140/Del/2024 NCH India Pvt. Ltd. Page 5 of 5 1. Date of dictation of Tribunal order 27.02.2025 2. Date on which the typed draft Tribunal Order is placed before the Dictating Member 27.02.2025 3. Date on which the typed draft Tribunal order is placed before the other Member 4. Date on which the approved draft Tribunal order comes to the Sr. PS/PS 5. Date on which the fair Tribunal order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr.PS/PS 7. Date on which the final Tribunal order is uploaded by the Sr.PS/PS on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal order 9 Date of killing off the disposed of files on the judisis Portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the order "