ITO, Faridabad v. M/s. Krishnan Lal (HUF), Jharsately

ITA 3947/DEL/2009 | 1997-1998
Pronouncement Date: 12-01-2010 | Result: Dismissed

Appeal Details

RSA Number 394720114 RSA 2009
Bench Delhi
Appeal Number ITA 3947/DEL/2009
Duration Of Justice 3 month(s) 20 day(s)
Appellant ITO, Faridabad
Respondent M/s. Krishnan Lal (HUF), Jharsately
Appeal Type Income Tax Appeal
Pronouncement Date 12-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 12-01-2010
Date Of Final Hearing 12-01-2010
Next Hearing Date 12-01-2010
Assessment Year 1997-1998
Appeal Filed On 22-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D : NEW DELHI BEFORE SHRI D.R.SINGH JM AND SHRI R.C.SHARMA AM ITA NOS.3946/DEL/2009 & 3947/DEL/2009 ASSESSMENT YEARS : 1996-97 & 97-98 INCOME TAX OFFICER WARD-1(5) FARIDABAD. VS. SHRI KRISHAN LAL (HUF) THROUGH SHRI KRISHAN LAL (KARTA) S/O SHRI PYARE LAL V & PO JHARSATELY. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHAKANT SAHU SR.DR. RESPONDENT BY : NONE. ORDER PER BENCH : THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) FOR THE AY 1996-97 & 97-98 IN THE MATTER OF DELETION O F PENALTY IMPOSED U/S 271(1)(C) OF THE IT ACT. 2. AS COMMON GROUNDS ARE INVOLVED IN BOTH THE APPEA LS AND CIT(A) HAS ALSO DISPOSED THE SAME BY A COMMON ORDER DATED 5.8.2009 WE HAVE HEARD THE LEARNED DR AND ARE NOW DISPOSING THE APPEALS BY THIS CONSOL IDATED ORDER. 3. FACTS IN BRIEF ARE THAT ASSESSEE WAS AWARDED COM PENSATION AND INTEREST ON ENHANCED COMPENSATION IN RESPECT OF LAND ACQUIRED B Y HUDA. AS HUDA HAD NOT ACCEPTED THE JUDGMENT OF ADDITIONAL DISTRICT JUDGE FOR ENHANCEMENT OF COMPENSATION AND PAYMENT OF INTEREST THEREON AND FI LED APPEAL BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT THE AMOUNT SO RECEIVED WAS ALLEGED TO BE REFUNDABLE. ACCORDINGLY IN THE RETURN OF INCOME A NOTE WAS APPENDED TO THE EFFECT THAT THE AMOUNT SO RECEIVED WOULD ASSUME THE CHARACTER OF CAPITAL GAIN/INCOME ONLY WHEN THE ASSESSEES TITLE WAS FINA LLY DETERMINED BY THE COURT OF LAW. HOWEVER THE AO BROUGHT THE AMOUNT IN THE TAX NET. HOWEVER IN AN APPEAL FILED BEFORE THE TRIBUNAL THE TRIBUNAL VIDE ITS OR DER DATED 20.6.2008 DELETED THE ITA-3946 & 3947/D/2009 2 ADDITION. THE AO LEVIED PENALTY U/S 271(1)(C) FOR NOT OFFERING THE ALLEGED RECEIPT IN THE INCOME. BY THE IMPUGNED ORDER CIT(A) DELET ED THE PENALTY BY OBSERVING THAT ADDITION HAS ALREADY BEEN DELETED BY THE TRIBU NAL THEREFORE THE IMPOSITION OF PENALTY WAS NOT JUSTIFIED. 4. WE HAVE CONSIDERED THE CONTENTION OF LEARNED DR AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE TRIBUNAL HAS ALREADY DELETED THE ADDITION MADE ON ACCOUNT OF ENHANCED COMPENSATION AND INTERE ST VIDE ITS ORDER DATED 20.6.2008 AND THE CIT(A) HAS ALSO DELETED THE PENA LTY ON THE BASIS OF ORDER OF THE TRIBUNAL. WHEN THE ADDITION ITSELF HAS BEEN DELETE D THE ORDER OF PENALTY HAS NO LEGS TO STAND. THERE WAS NO CONCEALMENT OF ANY FAC T IN THE RETURN OF INCOME THE ASSESSEE HAS CLEARLY DISCLOSED IN THE RETURN THAT T HE AMOUNT OF ENHANCED COMPENSATION AND INTEREST WAS NOT OFFERED TO TAX BE CAUSE OF A SUITE FILED BY HUDA IN THE HON'BLE PUNJAB & HARYANA HIGH COURT. EXACTL Y ON THE IDENTICAL ISSUE THE HON'BLE PUNJAB & HARYANA HIGH COURT IN ITA NO.582 O F 2007 VIDE ITS ORDER DATED 5.2.2008 HAS HELD THAT NO PENALTY ON THE TAX LIABILITY ON THE ENHANCED COMPENSATION AND INTEREST THEREON IS LEVIABLE. IN THE CASE OF HINDUSTAN HOUSING & LAND DEVELOPMENT TRUST HON'BLE PUNJAB & HARYANA HI GH COURT VIDE ITS ORDER DATED 1.7.2009 HAS UPHELD THE SAME PROPOSITION. RE SPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT A S WELL AS DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR DELETION OF ADD ITION WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR DELETING THE P ENALTY IMPOSED U/S 271(1)(C) IN RESPECT OF THE AMOUNT OF ENHANCED COMPENSATION AND INTEREST RECEIVED BY THE ASSESSEE. 5. IN THE RESULT BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 12 TH JANUARY 2010. SD/- SD/- (D.R.SINGH) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 12.01.2010. VK. ITA-3946 & 3947/D/2009 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT DEPUTY REGISTRAR