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Income Tax Appellate Tribunal, DELHI BENCHES “SMC” : DELHI
Before: SHRI BHAVNESH SAINI
ORDER This appeal by assessee has been directed against the Order of the Ld. CIT(A)-25, Delhi, dated 29.09.2017, for the A.Y. 2010-2011, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961.
The assessee filed return of income at Rs.1,91,933/- The A.O. considered the issue of disallowance under section 14A of the I.T. Act. The assessee-company has shown dividend
2 ITA.No.7741/Del./2017 RRP Management Services Pvt. Ltd., New Delhi. income of Rs.4,778/- and claimed as exempt under section 10(34) of the I.T. Act. The A.O, however, did not accept the contention of assessee and disallowed Rs.3,38,500/-. The A.O. initiated the penalty proceedings on this addition vide separate order levied the penalty against the assessee. The Ld. CIT(A) dismissed the appeal of assessee.
Learned Counsel for the Assessee, at the outset, submitted that quantum appeal of assessee has been decided by the Tribunal vide order dated 19.04.2018 for A.Y. 2011-2012 in ITA.No.6321/Del./2014. Copy of the order is placed on record, in which, the Tribunal restricted the disallowance to the extent of exempt income of Rs.4,778/-. Appeal of assessee has been allowed partly. Copy of the order is provided to the Ld. D.R. who did not dispute the same.
After considering the rival submissions, I am of the view that penalty is not leviable in the matter. The authorities below have levied the penalty against the assessee on making addition of Rs.3,38,500/-. However, the orders of the 3 ITA.No.7741/Del./2017 RRP Management Services Pvt. Ltd., New Delhi.
authorities below have been set aside and substantive addition have been deleted. The assessee pleaded before the authorities below that it has earned dividend income of Rs.4,778/- only.
The explanation of assessee was not accepted by the authorities below. The Tribunal, however, restricted the addition to the amount of dividend income, which was already declared by the assessee in the return of income and the material was produced at the assessment stage. Therefore, assessee disclosed all the particulars to the Revenue, therefore, it is not a case of concealment of income or furnishing inaccurate particulars of income. The substantial addition have been deleted by the Tribunal on merit. Therefore, the foundation for levy of penalty have gone and as such, it is not a fit case for levy of the penalty under section 271(1)(c) of the Act. I, accordingly, set aside the orders of the authorities below and cancel the penalty.
In the result, appeal of the Assessee is allowed.
4 ITA.No.7741/Del./2017 RRP Management Services Pvt. Ltd., New Delhi.
Order pronounced in the open Court.