M/S. SPACEVISION IMPEX (P) LTD.,NEW DELHI vs. ACIT, NEW DELHI

PDF · subscribers
ITA 269/DEL/2014Status: DisposedITAT Delhi31 May 2016AY 2007-083 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal deleted the penalty on interest on NSCs, citing a similar deletion in the assessee's own case for an earlier year. For the other two additions, the Tribunal noted that these were deleted in quantum proceedings, rendering the penalty unsustainable.

What were the facts?

The assessee's appeal was against a penalty levied under Section 271(1)(c) for the Assessment Year 2007-08. The penalty was based on additions made for interest on NSCs, reimbursement of plant expenses, and deemed interest.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted in quantum proceedings or on similar grounds as in earlier years.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SHRI J. SUDHAKAR REDDY & SHRI KULDIP SINGH

For Appellant: Shri Raj Kumar, C.A

ORDER PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER

This is an appeal filed by the Assessee directed against the order of the Ld.Commissioner of Income Tax (Appeals)-XII, New Delhi dated 13.11.2013 pertaining to the Assessment Year (A.Y.) 2007-08, wherein penalty levied u/s 271(1)(c ) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on the following additions confirmed by the First Appellate Authority. (i) Interest on NSC - Rs.62,075/- (ii) Reimbursement of plant expenses - Rs.2,37,263/- (iii) Deemed Interest - Rs.2,84,405/-

2.

We have heard Shri Raj Kumar, the Ld.Counsel for the assessee and Smt.Anima Barnwal, Ld.Sr.D.R. on behalf of the Revenue.

Spacevision Impex P Ltd., New Delhi

3.

On a careful consideration of the facts and circumstances of the case, orders of lower authorities and case laws cited, we hold as follows.

4.

We find that as regards penalty levied on addition of interest on NSCs, similar issue arose in the assessee’s own case for the earlier A.Y. and the ITAT in A.Y. 2006-07 order dt. 24.2.2016 deleted the penalty.

4.1. Consistent with the view taken therein, we delete the penalty levied on this addition.

4.2. As regards the other two additions, we find that the Tribunal in the quantum proceedings has deleted the additions. Hence the penalty levied on these additions cannot survive. In the result we quash the penalty order.

5.

In the result the appeal filed by the assessee is allowed.

Order pronounced in the Open Court on 31st May, 2016.

Sd/- Sd/- (KULDIP SINGH) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: the 31st May, 2016 *mangavathy gudipati

Spacevision Impex P Ltd., New Delhi Copy of the Order forwarded to:

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →