M/s. CHIRON BEHRING VACCINES P. LTD., MUMBAI V. DCIT - 8(1), MUMBAI

ITA 1003/MUM/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49573 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-07-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 13-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DORI SINGH
• Assessee Lawyers: ARVIND SONDE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI C BENCH BEFORE SHRI D.MANMOHAN, VICE PRESIDENT & SHRI T.R.SOOD, ACCOUNTANT MEMBER I.T.A.NO.1003/MUM/2009 A.Y 2002-03 CHIRON BEHRING VACCINES PRIVATE LIMITED, 501, SHRI AMBA SHANTI CHAMBERS, ANDHERI KURLA ROAD (OPP. THE LEELA) ANDHERI (EAST), MUMBAI 400 059. PAN: AAACC 6494 P VS. DY. COMMISSIONER OF I.T. 8(1), MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ARVIND SONDE. RESPONDENT BY : SHRI DORI SINGH. CIT DR O R D E R PER T.R.SOOD, AM: THIS APPEAL IS DIRECTED AGAINST THE ORDER OF THE C IT(A)-VIII, MUMBAI, DATED 07-11-2008 FOR A.Y 2002-03 AND THE ON LY DISPUTE INVOLVED IS REGARDING LEVY OF PENALTY U/S.271(1). 2. AFTER HEARING BOTH THE PARTIES, WE FIND THAT A P ENALTY HAS BEEN LEVIED BY THE AO IN RESPECT OF TWO ADDITIONS, VIZ., [I] AGAINST DISALLOWANCE OF EXPENDITURE FOR OBTAINING WHO CERTI FICATE AMOUNTING TO RS.1,05,82,250/- AND [III] DISALLOWANCE MADE IN TER MS OF ORDER OF THE TPO IN RESPECT OF RE-DETERMINATION OF ARMS LENGTH P RICE. 3. ON APPEAL BEFORE THE CIT(A) THE PENALTY IN RESPE CT OF FIRST ISSUE WAS DELETED BY HIM AND PENALTY IN RESPECT OF SECOND ISSUE WAS CONFIRMED BY THE LD. CIT(A). 4. BEFORE US, LD. COUNSEL OF THE ASSESSEE POINTED O UT THAT THE SECOND ISSUE HAS BEEN SET ASIDE BY THE TRIBUNAL IN QUANTUM ITA NO.1003/M/09 2 PROCEEDINGS IN I.T.A.NOS.3557/MUM/06 AND 3647/MUM/0 6 [COPY OF THE ORDER FILED ON RECORD AT PAGES 287 TO 309 OF THE PA PER BOOK]. 5. ON THE OTHER HAND, LD. DR RELIED ON THE ORDER OF THE CIT(A). 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE FIND THAT WHILE DECIDING THE QUANTUM PROCEEDINGS THE TRIBUNAL IN I.T.A.NOS.3557/MUM/06 AND 3647/MUM/06 HAS SET ASIDE THE ISSUE REGARDING ADJUSTMENT ON ACCOUNT OF ARMS LENGTH PRIC E TO THE FILE OF THE AO FOR RE-ADJUDICATION. THEREFORE, THIS ADDITION DO ES NOT SURVIVE AND ACCORDINGLY WE DELETE THE PENALTY. HOWEVER, AO IS A T LIBERTY TO INITIATE PENALTY PROCEEDINGS IF ANY ADJUSTMENT IS MADE IN TH E FRESH ASSESSMENT PROCEEDS IF THE CIRCUMSTANCES SO WARRANT. 7. IN THE RESULT, APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 9/7/2011. SD/- SD/- (D.MANMOHAN) (T.R.SOOD) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI: 29/7/2011. P/-*