Motherson Jones Ltd., New Delhi v. ITO, New Delhi

ITA 2406/DEL/2011 | 2003-2004
Pronouncement Date: 09-12-2011 | Result: Allowed

Appeal Details

RSA Number 240620114 RSA 2011
Assessee PAN AAACM1219Q
Bench Delhi
Appeal Number ITA 2406/DEL/2011
Duration Of Justice 6 month(s) 29 day(s)
Appellant Motherson Jones Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 09-12-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted I
Tribunal Order Date 09-12-2011
Date Of Final Hearing 07-12-2011
Next Hearing Date 07-12-2011
Assessment Year 2003-2004
Appeal Filed On 11-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH I NEW DELHI) BEFORE SHRI RAJPAL YADAV AND SHRI A.N. PAHUJA ITA NO.2406/DEL/2011 ASSESSMENT YEAR: 2003-04 MOTHERSON JONES LTED. VS. INCOME-TAX OFFICER G-237 PREET VIHAR WARD 5(4) NEW DELHI. NEW DELHI. (PAN: AAACM1219Q) (APPELLANT) (RESPONDENT) APPELLANT BY: NONE RESPONDENT BY: SHRI AK MONGA S R.DR DATE OF HEARING : 09.12.2011 DATE OF PRONOUNCEMENT : 09.12.2011 ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LEARNED CIT(APPEALS) DATED 28.02.2011 PASSED FOR ASSESSMENT YEAR 2003-04. THE GRIEVANCE OF THE ASSESSEE IS THAT LEARNED CIT(APPEA LS) HAS ERRED IN CONFIRMING THE PENALTY OF RS.59 485 IMPOSED UNDER S EC. 271(1)(C) OF THE INCOME-TAX ACT 1961. THE APPEAL WAS LISTED FOR 22 ND SEPTEMBER 2011. SHRI PC YADAV ADVOCATE APPEARED ON BEHALF OF THE ASSESS EE AND SOUGHT ADJOURNMENT. THE HEARING WAS ADJOURNED TO 7 TH DECEMBER 2011. HOWEVER ON 7.12.2011 ON ONE APPEARED ON BEHALF OF THE ASSE SSEE. LEARNED DR POINTED OUT THAT QUANTUM APPEAL FOR ASSESSMENT YEAR 2003-04 HAS ALREADY BEEN HEARD BY THE ITAT. WE INSTRUCTED THE LEARNED D R TO PLACE ON RECORD 2 COPY OF THE ITATS ORDER IN QUANTUM APPEAL I.E. ITA NO.240/DEL/2008 AND ADJOURNED THE HEARING FOR TODAY. THE ITAT HAS DECID ED THE QUANTUM APPEAL ON 12.8.2011 AND LEARNED DR PLACED ON RECORD COPY O F THE ITATS ORDER. 2. IT EMERGES OUT FROM THE RECORD THAT AN EX PARTE ASSESSMENT ORDER UNDER SEC. 144 OF THE INCOME-TAX ACT 1961 WAS FRAMED IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2003-04. LEARNED ASSESSING OFFICER HAS COMPUTED THE INCOME AT RS.3 61 860 WHEREIN HE MADE TWO ADDITIONS INTER ALIA RS.1 61 864 UNDER SEC. 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED TRANSACTIONS IN THE BANK AND RS.2 00 000 ON ACCOUNT OF UNDECLARE D LONG TERM CAPITAL GAIN. ASSESSING OFFICER HAD ISSUED NOTICE UNDER SEC. 274 READ WITH SECTION 271 FOR INITIATING PENALTY PROCEEDINGS QUA ADDITION OF RS.1 61 864. HE ULTIMATELY IMPOSED A PENALTY OF RS.59 484 UNDER SEC. 271(1)(C) OF THE ACT. 3. WITH THE ASSISTANCE OF LEARNED DR WE HAVE GONE THROUGH THE RECORD CAREFULLY. WE FIND THAT THE ITAT HAS ALLOWED THE A PPEAL OF ASSESSEE IN THE QUANTUM PROCEEDINGS FOR STATISTICAL PURPOSES AND SE T ASIDE THE ISSUE FOR READJUDICATION QUA THE ADDITION OF UNEXPLAINED CASH CREDITS IN THE BANK ACCOUNT. SINCE THE VERY BASIS FOR THE PENALTY HAS B EEN EXTINGUISHED THEREFORE NO PENALTY CAN BE COMPUTED. THE PENALTY ORDER DESERVES TO BE SET 3 ASIDE. IN THE FRESH ASSESSMENT PROCEEDINGS WE CANN OT ANTICIPATE THAT THIS AMOUNT WILL BE ADDED AND PENALTY WOULD BE IMPOSEABL E UPON THE ASSESSEE. THE ISSUE HAS TO BE READJUDICATED BY THE ASSESSING OFFICER AFTER PROVIDING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. IN SUCH SIT UATION WE DEEM IT APPROPRIATE TO SET ASIDE THE PENALTY ORDER. WE ARE NOT RELEGATING THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER BECAUSE IT WILL B E IN THE DISCRETION OF THE ASSESSING OFFICER TO INITIATE OR NOT TO INITIATE TH E PENALTY PROCEEDINGS AFTER ADJUDICATION OF THE QUANTUM ADDITION THEREFORE WE SIMPLY ALLOW THE APPEAL OF THE ASSESSEE AND DELETE THE PENALTY. DECISION PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( A.N. PAHUJA ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09/12/2011 MOHAN LAL COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR