Cosmos Industries Ltd., New Delhi v. DCIT, New Delhi

ITA 5709/DEL/2015 | 2009-2010
Pronouncement Date: 29-11-2017 | Result: Allowed

Appeal Details

RSA Number 570920114 RSA 2015
Assessee PAN AAACC6682R
Bench Delhi
Appeal Number ITA 5709/DEL/2015
Duration Of Justice 2 year(s) 1 month(s) 17 day(s)
Appellant Cosmos Industries Ltd., New Delhi
Respondent DCIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted F
Tribunal Order Date 29-11-2017
Assessment Year 2009-2010
Appeal Filed On 12-10-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F NEW DELHI BEFORE SHRI R . S . SYAL VICE PRESIDENT AND SMT. BEENA A PILLAI JUDICIAL MEMBER ITA NO. 5709 /DEL/2015 A.Y. 20 09 - 10 COSMOS INDUSTRIES LTD. FLAT NO.5A 18 VASANT VIHAR POORVI MARG NEW DELHI 110 017 PAN: AAACC 6682R VS . DCIT CIRCLE 3(1) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SHRI ATIQ AHMAD SR.D.R DATE OF HEARING 20 TH NOVEMBER 2017 DATE OF PRONOUNCEMENT 29 TH NOVEMBER 2017 ORDER PER BEENA A PILLAI JUDICIAL MEMBER T HE PRESENT PENALTY APPEAL HA S BEEN PREFERRED BY ASSESSEE AGAINST ORDER DATED 31/07/15 PASSED BY LD.CIT(A) - 2 FOR ASSESSMENT YEAR 2009 - 10 ON THE FOLLOWING GROUNDS OF APPEAL: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON MERITS OF CASE WAS NOT JUSTIFIED IN SUSTAINING PENALTY U/S 271(1)(C ) OF THE INCOME TAX ACT 1961 OF RS.9886101/ - WHEREAS THE ASSESSEE HAS NOT CONCEALED ANY ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 2 OF 7 PARTICULARS OF ITS INCOME OR NOT FURNISHED ANY INACCURATE PARTICULARS OF ITS INCOME. 2. THE LD.CIT(A) - 2 WAS NOT JUSTIFIED IN IGNORING JUDGMENTS DELIVERED BY HON BLE ITA T NEW DELHI IN ASSESSEE S OWN CASE DELETING PENALTY ON MERITS FOR ASSESSMENT YEAR 2004 - 05 ON THE SAME ISSUE WHEREIN IT WAS HELD: - WHERE THERE IS NO FINDING THAT ANY DETAIL SUPPLIED BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERRONEOUS OR F ALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271 (1) (C). A MERE MAKING OF THE CLAIM WHICH IS NOT SUSTAINABLE IN LAW BY ITSELF WILL NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS REGARDING THE INCOME OF THE ASSESSEE. SUCH A CLAIM MADE IN THE RETURN CANNOT AMOUNT TO FURNISHING INACCURATE PARTICULARS. 3. FURTHER IN QUANTUM APPEAL OF ASSESSMENT YEAR 2004 - 05 2006 - 07 AND 2007 - 08 HON BLE ITAT PRONOUNCED THE JUDGEMENT ON 23.5.2014 HOLDING THAT: THUS THE AO OBVIOUSLY WENT WRONG IN CONCLUDIN G THAT THE SDF LOAN WAS FROM IFCI AND NOT FROM GOVERNMENT OF INDIA. CIT(A) HAS TAKEN INTO CONSIDERATION ALL THESE FACTS WHILE RIGHTLY DELETING THE ADDITION AND WE DO NOT FIND ANY ERROR WHATSOEVER WITH THE WELL REASONED OBSERVATIONS RECORDED BY HER IN THE IMPUGNED ORDER. 4. THE LD.CIT(A) WAS NOT JUSTIFIED IN NOT CONSIDERING VARIOUS CASE LAWS OF APEX COURT AND JURISDICTIONAL AND OTHER HIGH COURTS CITED BY THE APPELLANT. 5. THE APPELLANT CLAIMS TO ADD AMEND OR WITHDRAW ANY OF THE GROUND OF APPEAL ON OR BEFO RE THE DATE OF HEARING. ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 3 OF 7 2. BRIEF FACTS OF THE CASE ARE AS UNDER: T HE ASSESSEE FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 1 24 49 030/ - . THE CASE WAS SELECTED FOR SCRUTINY UNDER SECTION 143 (3 ) AND ASSESSMENT WAS COMPLETED AT AN INCOME O F RS. 4 15 0 4 3 55/ - BY MAKING AN ADDITION UNDER SECTION 43B FOR NON - PAYMENT OF INTEREST OF STF LOAN OF RS. 2 90 85 325/ - . ASSESSING OFFICER THEREBY LEVIED PENALTY OF RS. 98 96 101/ - UNDER SECTION 271 (1) (C) OF THE A CT ON THE SAID DISALLOWANCE MADE BY THE ASSESSING OFFICER. 2.1. AGGRIEVED BY THE ORDER OF LD. AO ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A) WHO CONFIRMED THE PENALTY LEVIED. 2.2. AGGRIEVED BY THE ORDER OF LD. CIT (A) ASSESSEE IS IN APPEAL BEFORE US NOW. 3. ON PERUSAL OF THE ORDER PASSED BY LD. CIT (A) IT IS OBSERVED THAT THE SAME ISSUE HAS ARISEN IN THE EARLIER ASSESSMENT YEARS BEING 2004 - 05 2006 - 07 AND 2007 - 08 WHERE THE LD. CIT (A) DELETED THE ADDITION S BY HOLDING THAT AS THE LOAN WAS RECEIVED BY THE ASSESSEE FROM GOVERNMENT OF IND IA PROVISIONS OF SECTION 4 3B IS NOT APPLICABLE . A GAINST THE ORDERS OF LD.CIT (A) FOR THE ABOVE STATED ASSESSMENT YEARS REVENUE HAD P REFERRED AN APPEAL BEFORE THIS T RIBUNAL AND THIS T RIBUNAL V IDE ORDER DATED 23/05/14 IN ITA NO. 877/DEL/11 1819/DEL/11 1906 & 1965/DEL/11 CONFIRMED THE DELETION OF PENALTY. 3.1. AGGRIEVED BY THE ORDER OF LD.CIT(A) REVENUE IS IN APPEAL BEFORE US. ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 4 OF 7 4. IT IS OBSERVED FROM THE FACTS OF THE PRESENT CASE WHICH ARISES FROM THE RECORD TH AT ASSESSEE HAD RECEIVED LOAN FROM THE SAN CTIONED BUDGET OF MINISTRY OF F OOD AND C IVIL S UPPLIES FOR THE REHABILITATION AND MODERNISATION OF SUGAR MILLS . IT IS FURTHER OBSERVED THAT ALL THESE DETAILS WERE FULL Y DISCLOSE D IN THE AUDITED ACCOUNTS FILED BY ASSESSEE ALONG WITH ORIGINAL RETURN OF IN COME. 4.1. LD. DR PLACED RELIANCE UPON THE ORDERS PASSED BY AUTHORITIES BELOW . 5. WE HAVE PERUSED THE ORDERS PASSED BY THE AUTHORITIES BELOW AND RECORDS PLACED BEFORE US. LD. A SSESSING O FFICER HAS NOT ANYWHERE RECORDED REGARDING THE DETAILS FILED BY ASSE SSEE ALONG WITH ITS RETURN OF INCOME BEING INCORRECT OR FALSE. MERELY BECAUSE A SSESSING O FFICER IS OF THE OPINION REGARDING THE DEDUCTION BEING INADMISSIBLE TO THE ASSESSEE WOULD NOT ATTRACT PENALTY PROVISIONS UNDER SECTION 271 (1) (C) OF THE A CT. A MERE MAKING OF CLAIM BY ASSESSEE WHICH MAY NOT BE SUSTAINABLE IN LAW BY ITSELF WILL NOT AMOUNT TO FURNISHING OF INACCURATE PARTICULARS OR ANY CONCEALMENT BY ASSESSEE . THE CLAIM OF DEDUCTION WAS VERY MUCH THERE IN THE RETURNS FILED BY ASSESSEE SU PPORTED BY A UDITED ACCOUNTS. 5.1. HON BLE SUPREME COURT IN THE CASE OF CIT VS R ELIANCE PETRO P RODUCTS P VT. L TD. REPORTED IN 322 ITR 158 HELD AS UNDER: W HERE THERE IS NO FINDING THAT ANY DETAIL SUPPLIED BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERR ONEOUS OR FALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271 (1) (C). A MERE MAKING OF THE CLAIM WHICH IS NOT SUSTAINABLE IN LAW BY ITSELF WILL NOT AMOUNT TO FURNISHING INACCURATE PARTICULARS REGARDING THE INCOME OF ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 5 OF 7 THE ASSESSEE. SUCH A CLAIM MADE IN THE RETURN CANNOT AMOUNT TO FURNISHING INACCURATE PARTICULARS. 5.2. RESPECTFULLY FOLLOWING THE ABOVE CITED DECISION WE ARE INCLINED TO DELETE THE PENALTY LEVIED BY A SSESSING O FFICER WHICH WAS CONFIRMED BY LD. CIT (A). ACCORDINGLY THE GROU NDS RAISED BY ASSESSEE IN ITS APPEAL STAND ALLOWED. 6. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.11.2017. SD/ - SD/ - (R.S. SYAL) (BEENA A PILLAI) VICE PRESIDENT JUDICIAL MEMBER DATED 29 TH NOVEMBER 2017. *MV ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 6 OF 7 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT DELHI BENCHES NEW DELHI ITA 5709/DEL/2015 ASSESSMENT YEAR 2009 - 10 COSMOS INDUSTRIES LTD. PAGE 7 OF 7 DATE 1. DRAGON DICTATION 20/11 2. DRAFT PLACED BEFORE AUTHOR 23/11 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. APPROV ED DRAFT COMES TO SRPS/PS 2 9 /11 5. KEPT FOR PRONOUNCEMENT ON 29/11 6. FILE SENT TO BENCH CLERK 7. ORDER UPLOADED