DCIT, New Delhi v. M/s. Regency Creations Pvt. Ltd., New Delhi

ITA 2185/DEL/2012 | 2007-2008
Pronouncement Date: 30-07-2012 | Result: Dismissed

Appeal Details

RSA Number 218520114 RSA 2012
Bench Delhi
Appeal Number ITA 2185/DEL/2012
Duration Of Justice 2 month(s) 22 day(s)
Appellant DCIT, New Delhi
Respondent M/s. Regency Creations Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-07-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 30-07-2012
Assessment Year 2007-2008
Appeal Filed On 08-05-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI I.C SUDHIR JUDICIAL MEMBER AND SHRI T.S. KAPOOR ACCOUNTANT MEMBER I.T.A. NO.2185/DEL/2012 ASSESSMENT YEAR : 2007-08 DCIT REGENCY CREATIONS PVT. LTD. CIRCLE-15 (1) A-106 2 ND FLOOR NEW DELHI. V. LAJPAT NAGAR NEW DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AAACR AAACR AAACR AAACR- -- -4348 4348 4348 4348- -- -D DD D APPELLANT BY : SMT. VEENA JOSHI SR. DR. RESPONDENT BY : NONE. ORDER PER TS KAPOOR AM: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE OR DER OF LD CIT(A) DATED 10.2.2012. THE GROUNDS RAISED BY THE REVENUE A RE AS UNDER:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD CIT(A) HAS ERRED IN DELETING THE PENALTY U/S 271(1)( C) WITH THE OBSERVATION THAT SINCE THE QUANTUM ADDITION DOES NOT SURVIVE THERE REMAINS NO BASIS FOR PENALTY IMPOSITION. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD CIT(A) HAS ERRED IN OVERLOOKING THE FACT THAT THE ASSESSEE DOES NOT FULFILL THE REQUIREMENT FOR DEDUCTION U/S 10B AND FURTHER THAT APPEAL HAS BEEN FILED BEFORE THE H ON'BLE HIGH ITA NO2185/DEL/2012 2 COURT AGAINST THE DECISION OF THE HON'BLE ITAT IN ASSESSM ENT YEAR 2003-04 2004-05 & 2007-08. 3. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FRESH G ROUNDS OF APPEAL AND OR/DELETE OR AMEND ANY OTHER OF THE GROU NDS OF APPEAL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS E NGAGED IN EXPORT OF ARTWARE HANDICRAFTS HOME FURNISHING ITEMS AND ONE OF ITS UNITS NAMED M/S MAXTECH I SOLUTION IS A 100% SOFTWARE EXPORT ORIENTED UNIT. RETURN DECLARING AN INCOME OF ` .88 35 688/- WAS FILED BY THE ASSESSEE ON 31.10.2007. IN THE RETURN THE ASSESSEE COMPA NY HAD CLAIMED PROFIT FROM M/S MAXTECH I SOLUTION (100% EOU ) AS EXEMPT U/S 10B OF THE INCOME TAX ACT 1961. DURING THE COURSE O F ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER FOUND THAT THE COMPAN Y WAS NOT ELIGIBLE FOR DEDUCTION U/S 10B OF THE ACT THEREFORE HE DISALLOWED THE SAME AND INITIATED PENALTY PROCEEDINGS AND COMPLETED PROCEEDINGS U/S 271(1)( C) OF THE ACT VIDE ORDER DATED 31..3.2011 I MPOSING PENALTY OF `.30 60 691/-. 3. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE LD CIT(A ) AND SUBMITTED THAT AGAINST THE ORDER OF ASSESSING OFFICER IT HAD FILED THE APPEAL AND ULTIMATELY HON'BLE ITAT IN I.T.A. NO.158 8/DEL/2010 ON DATED 3.5.2011 HAD DECIDED THE MATTER IN OUR FAVOUR AND T HEREFORE IN VIEW OF THE FACT THAT SINCE THE ADDITION STAND REVERSED THERE IS NO REASON FOR IMPOSITION OF PENALTY U/S 271(1) ( C) OF THE ACT. THE RELEVANT PARAGRAPH OF LD CIT(A)S ORDER IS REPRODUCED BELOW:- I HAVE CAREFULLY CONSIDERED THE PENALTY ORDER AND T HE SUBMISSION MADE BY THE LD AR AND THE ORDER OF HON'BLE ITAT DATED 3.5.2011. THE FACTS OF THE CASE ARE THAT THE A SSESSING ITA NO2185/DEL/2012 3 OFFICER HAD MADE CERTAIN ADDITIONS/DISALLOWANCES IN TH E ORDER ISSUED U/S 143(3) OF THE ACT. MY PREDECESSOR LD CIT(A) V IDE HIS ORDER DATED 28./1.2010 UPHELD THE DISALLOWANCE MADE BY THE ASSESSING OFFICER OF DEDUCTION CLAIMED BY THE ASSESSEE U/S 1 0B OF THE ACT. THE HON'BLE ITAT VIDE ITS ORDER DATED 3. 5.2011 IN I.T.A. NO.1588/DEL/2010 HAS HOWEVER HELD THAT THE ASSE SSEE IS ENTITLED TO CLAIM OF THE DEDUCTION U/S 10B OF THE AC T AND THUS ALLOWED THE APPEAL OF THE ASSESSEE. IN THE MEANTIME TH E ASSESSING OFFICER VIDE ORDER DATED 31.3.2011 LEVIED PEN ALTY U/S 271(1)(C) AT 100% OF THE TAX SOUGHT TO BE EVADED AMO UNTING TO ` .30 60 609/-. DURING THE APPELLATE PROCEEDINGS THE APPELLANT SUBMITTED THAT THE PENALTY SHOULD BE DELETED AS AFTER THE DECISION OF THE HON'BLE ITAT IT WAS INFRUCTUOUS. THE F ACTS HAVE BEEN CONSIDERED AND IN COMPLIANCE TO THE PROVISIONS OF SECTION 275(1A) THE QUANTUM OF PENALTY WOULD BE REDUCED TO NIL AS THE PENALTY ORDER CANNOT SURVIVE SINCE THE QUANTUM OF THE ENTIRE ADDITION HAS BEEN DELETED BY A HIGHER JUDICIAL AUTHO RITY. HOWEVER NO DECISION ON THE PENALTY ORDER IS BEING TA KEN ON MERIT. THE FACTUM OF PENDENCY OF REFERENCE IN THE Q UANTUM PROCEEDINGS WITH THE HON'BLE HIGH COURT HAS BEEN CONF IRMED BY THE APPELLANT THEREFORE THE PENALTY ORDER WOULD B E REVIVED IN CASE DECISION FAVOURABLE TO THE REVENUE IS TAKEN BY AN Y HIGHER JUDICIAL AUTHORITY. 5. AGGRIEVED THE REVENUE HAS FILED APPEAL BEFORE TH IS TRIBUNAL. 6. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. THE LD DR ADMITTED THAT ADDITION MADE BY THE ASSESSING OFFICER AG AINST WHICH PENALTY WAS IMPOSED HAS BEEN REVERSED BY THE HON'BLE I TAT VIDE ORDER ITA NO2185/DEL/2012 4 DATED 3.5.2011. HOWEVER SHE MAINTAINED THAT THE DE PARTMENT IS IN APPEAL WITH THE HON'BLE HIGH COURT. 7. WE HAVE GONE THROUGH THE MATERIAL PLACED BEFORE US AND HAS ALSO GONE THROUGH THE ORDER OF THE HON'BLE TRIBUNAL DATED 3.5.2011 IN RESPECT OF I.T.A. NO.1588/DEL/2010.WE FOUND THAT THI S ORDER OF HON'BLE ITAT HAD REVERSED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER AND IN VIEW OF THE FACT THAT AFTER DELETION OF DISALLOWA NCE THE QUANTUM OF PENALTY WOULD BE REDUCED TO NIL. SINCE QUANTUM OF E NTIRE ADDITION HAS BEEN DELETED BY HIGHER JUDICIAL AUTHORITY THEREFOR E WE ARE OF THE CONSIDERED OPINION THAT LD CIT(A) HAD RIGHTLY DELETE D THE PENALTY U/S 271(1)( C) AND WE DO NOT SEE ANY REASON TO INTERFERE WITH THE SAME. 8. IN VIEW OF THE ABOVE THE APPEAL FILED BY THE RE VENUE IS DISMISSED. 9. ORDER PRONOUNCED IN THE OPEN COURT ON THE 30TH D AY OF JULY 2012. SD/- SD/- (I.C. SUDHIR) (T.S. KAPOO R) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 30.7.2012. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER ITA NO2185/DEL/2012 5 (ITAT NEW DELHI). DATE OF HEARING 11.7.2012 DATE OF DICTATION 27.7.2012 DATE OF TYPING 30.7.2012 DATE OF ORDER SIGNED BY 30.7.2012 BOTH THE MEMBERS & PRONOUNCEMENT. DATE OF ORDER UPLOADED ON NET 30.7.2012 & SENT TO THE BENCH CONCERNED.