DCIT, New Delhi v. M/s Morgan Securities & Credit (P) Ltd.,, New Delhi

ITA 6158/DEL/2015 | 2007-2008
Pronouncement Date: 17-11-2017 | Result: Dismissed

Appeal Details

RSA Number 615820114 RSA 2015
Assessee PAN AACCM7937R
Bench Delhi
Appeal Number ITA 6158/DEL/2015
Duration Of Justice 1 year(s) 11 month(s) 28 day(s)
Appellant DCIT, New Delhi
Respondent M/s Morgan Securities & Credit (P) Ltd.,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 17-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 17-11-2017
Assessment Year 2007-2008
Appeal Filed On 19-11-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI R.S. SYAL VICE PRESIDENT AND SMT BEENA PILLAI JUDICIAL MEMBER ITA NO.6158/DEL/2015 ASSESSMENT YEAR: 2007-08 DCIT CIRCLE-17(1) NEW DELHI. VS. MORGAN SECURITIES & CREDIT (P) LTD. A-38 1 ST FLOOR MOHAN CO-OPERATIVE INDL. ESTATE MAIN MATHURA ROAD NEW DELHI. PAN: AACCM7937R (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI ATIQ AHMAD SR. DR DATE OF HEARING : 15.11.2017 DATE OF PRONOUNCEMENT : 16.11.2017 ORDER PER R.S. SYAL VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 15.09.2015 DELETING THE PEN ALTY OF RS.23 61 909/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ITA NO.6158/DEL/2015 2 INCOME-TAX ACT 1961 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEAR 2007-08. 2. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE NE CESSARY RECORDS. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSE E DESPITE NOTICE. AS SUCH WE ARE PROCEEDING TO DISPOSE OFF THE APPEAL EX PARTE QUA THE ASSESSEE. PENALTY IN THIS CASE WAS IMPOSED WITH REF ERENCE TO THE DISALLOWANCE MADE U/S 14A READ WITH RULE 8D. 3. ADVERTING TO THE FACTS OF THE INSTANT CASE I T IS SEEN THAT THE DISALLOWANCE U/S 14A OF THE ACT WAS MADE BY THE ASS ESSING OFFICER IN TERMS OF RULE 8D. THE HON'BLE BOMBAY HIGH COURT I N GODREJ & BOYCE MANUFACTURING COMPANY LTD. VS. DCIT 318 ITR 81 (BO M) HAS HELD THAT THE PROVISIONS OF RULE 8D ARE APPLICABLE ONLY FROM THE ASSESSMENT YEAR 2008-09 ONWARDS. THE ASSESSMENT YEAR UNDER CONSIDE RATION IS 2007-08. IN VIEW OF THE FOREGOING DISCUSSION IT IS CLEAR TH AT THE VERY BASIS FOR MAKING DISALLOWANCE U/S 14A BY APPLYING RULE 8D IS ITSELF UNDER THE SHADOW OF DOUBT. BY NO STANDARD SUCH A DISALLOWAN CE CAN BE CONSTRUED ITA NO.6158/DEL/2015 3 AS A CASE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME SO AS TO WARRANT PENALTY U/S 271(1)(C) OF THE ACT. 4. THE HON'BLE SUPREME COURT IN THE CASE CIT VS. RELIANCE PETRO PRODUCTS PVT. LTD. (2010) 322 ITR 158 (SC) HAS HELD THAT SIMPLY FOR THE REASON THAT THE ASSESSING OFFICER DID NOT FIND THE CLAIM OF THE ASSESSEE TO BE SUSTAINABLE IN LAW UP TO A CERTAIN EXTENT CANNO T BE A CASE FOR PENALTY U/S. 271(1)(C) MORE SO WHEN THE PARTICULARS FUR NISHED BY THE ASSESSEE WERE NOT INACCURATE. RATIO DECIDENDI OF THE JUDGMENT IS FULLY APPLICABLE TO THE INSTANT CASE AS WELL. IN VIEW OF THE FOREGOI NG DISCUSSION WE UPHOLD THE IMPUGNED ORDER DELETING THE PENALTY IMPO SED U/S 271(1)(C) OF THE ACT. 5. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH NOVEMBER 2017. SD/- SD/- [BEENA PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED 16 TH NOVEMBER 2017. DK ITA NO.6158/DEL/2015 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT AR ITAT NEW DELHI.