Income Tax Appellate Tribunal - Delhi
Dcit, New Delhi vs M/S. Actis Advisers Pvt. Ltd., New Delhi on 5 January, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "I-1" : DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND
SHRI O.P. KANT, ACCOUNTANT MEMBER
ITA.No.4819/Del./2014
Assessment Year 2005-2006
The DCIT, Circle-1(1), M/s. Actis Advisers Pvt. Ltd.,
Room No.392, C.R. Bldg., Mira, The Corporate Suites,
I.P. Estate, New Delhi. vs. Block-D, Ground Floor, 1 & 2,
PIN 110 002 Ishwar Nagar, New Delhi
PIN-110 065.PAN AAACC5281G
(Appellant) (Respondent)
For Revenue : Shri B.P. Singh, Sr. D.R.
For Assessee : Shri Nagesh Behl, C.A.
Date of Hearing : 04.01.2018
Date of Pronouncement : 05.01.2018
ORDER
PER BHAVNESH SAINI, J.M.
This appeal by Revenue has been directed against the order of the Ld. CIT(A)-XX, New Delhi, dated 13th June, 2014, for the A.Y. 2005-2006, challenging the cancellation of penalty under section 271(1)(c) of the I.T. Act, 1961.
2
ITA.No.4819/Del./2014 Actis Advisers Pvt. Ltd.,New Delhi.
2. Briefly, the facts of the case are that the A.O. in pursuance to the order of the TPO made addition of Rs.4,55,08,456 in assessment order passed on dated 12.11.2008. The appeal of assessee has been dismissed by Ld. CIT(A)-XX, New Delhi, vide order dated 31st October, 2011. The A.O. initiated the penalty proceedings under section 271(1)(c) of the Act and vide separate order, levied the penalty, which remain in challenge before Ld. CIT(A). The Ld. CIT(A) in the impugned order considered the merits of the case and following the order of ITAT, Delhi Bench, in the case of Verizon Communication India (P) Ltd., vs. DCIT (2012) 27 taxmann.com 328 (Del.) and relying upon the decision of the Hon'ble Supreme Court in the case of CIT vs. Reliance Petro Products Ltd., 322 ITR 158, cancelled the penalty and allowed the appeal of assessee.
3. Learned Counsel for the Assessee, at the outset, submitted that the assessee preferred appeal before ITAT, I-2 Bench, New Delhi, against the quantum order of Ld. CIT(A), dated 31st October, 2011 in ITA.No.64/Del./2012 which has been allowed by the Tribunal vide order dated 29th June, 2016, in which the orders of the authorities 3 ITA.No.4819/Del./2014 Actis Advisers Pvt. Ltd.,New Delhi.
below have been set aside and matter is restored to the file of A.O./TPO for fresh adjudication denovo, in accordance with Law. He has submitted that the A.O./TPO has passed the order afresh in pursuance to the directions of the Tribunal vide order dated 21st April, 2017, making addition of Rs.1,32,00,160 and A.O. issued fresh penalty notice under section 271(1)(c) of the I.T. Act, dated 21st April, 2017. Copy of the orders and notice are filed in the paper book. He has, therefore, submitted that the present penalty proceedings have become infructuous and no interference is called for in the matter.
4. Ld. Sr. D.R. did not dispute the above contention of the Learned Counsel for the Assessee and submitted that since fresh penalty proceedings have been initiated, therefore, nothing survive at this stage.
5. Considering the facts of the case in the light of submissions of both the parties, we are of the view that departmental appeal has become infructuous and no interference is called for at this stage. In this case, A.O. levied the penalty under section 271(1)(c) of the I.T. Act, on the basis of addition made by the A.O. in Arms 4 ITA.No.4819/Del./2014 Actis Advisers Pvt. Ltd.,New Delhi.
Length Price determined by the TPO in a sum of Rs.4.55 crore in assessment order dated 12.11.2008, which was confirmed by the Ld. CIT(A) vide order dated 31st October, 2011. The orders of the authorities below on quantum have been set aside by the Tribunal and matter is restored to the file of the A.O/TPO. The A.O. passed fresh assessment order and made part addition of Rs.1.32 crores, resulting into that the original assessment order would no longer survive in the eye of Law, on the basis of which, penalty was imposed by the A.O. in the present proceedings, pending before the Tribunal. Since no original assessment order survive as per order of the Tribunal dated 29th June, 2016 and A.O. initiated fresh penalty proceedings and passed the assessment order afresh by the A.O, therefore, the Departmental appeal has become infructuous and is liable to be dismissed at this stage. In view of the above facts, there is no need to decide the Departmental appeal on merits.
4. In view of the above discussion, the Departmental appeal stands dismissed without deciding on merits. However, the A.O. is at liberty to take appropriate action, if so advised, in accordance with 5 ITA.No.4819/Del./2014 Actis Advisers Pvt. Ltd.,New Delhi.
law, on the basis of the assessment order passed afresh vide order dated 21st April, 2017. The Departmental appeal dismissed.
5. In the result, appeal of the Department dismissed.
Order pronounced in the open Court.
Sd/- Sd/-
(O.P. KANT) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Delhi, Dated 05th January, 2018
VBP/-
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT 'I-1' Bench, Delhi
6. Guard File.
// By order //
Asst. Registrar : ITAT Delhi Benches :
Delhi.