HIKAL LTD, MUMBAI V. DCIT CIR 3(1), MUMBAI

ITA 1150/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0851 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN
• Assessee Lawyers: SANJAY R PARIKH
• Keywords: Reassessment proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'H' BENCH, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.1150/MUM/2016 (ASSESSMENT YEAR: 2003-04) M/S. HIKAL LIMITED VS. DCIT, CIRCLE - 3(1) 717/718, MAKER CHAMBERS V NARIMAN POINT MUMBAI 400021 MUMBAI PAN AAACH0383A APPELLANT RESPONDENT APPELLANT BY: SHRI SANJAY R. PARIKH RESPONDENT BY: SHRI M.C. OMI NINGSHEN DATE OF HEARING: 01.01.2018 DATE OF PRONOUNCEMENT: 24.01.2018 O R D E R PER RAJESH KUMAR, AM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-8, MUMBAI DATED 31.12.2015 FOR A.Y. 2003-04. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THIS APPEA L IS AGAINST THE CONFIRMATION OF PENALTY OF ` 37,68,299/- BY THE CIT(A) AS IMPOSED BY THE AO UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) FOR CONCEALMENT OF INCOME. 3. AT THE OUTSET THE LEARNED A.R. FOR THE ASSESSEE POI NTED OUT THAT THE QUANTUM APPEAL IN CONNECTION WITH WHICH THIS PENALT Y HAS BEEN LEVIED STANDS DECIDED IN FAVOUR OF THE ASSESSEE BY THE ORD ER DATED 17.02.2016 PASSED IN ITA NO. 4494/MUM/2012 FOR A.Y. 2003-04 BY THE COORDINATE BENCH WHEREIN THE ASSESSMENT ORDER PASSED U/S 143(3 ) R.W.S. 147 OF THE ACT HAS BEEN DECLARED INVALID AND QUASHED. THE LEAR NED A.R. SUBMITTED THAT SINCE THE ASSESSMENT ORDER HAS BEEN QUASHED, T HE PENALTY, WHICH IS ITA NO. 1150/MUM/2016 M/S. HIKAL LIMITED 2 THE SUBJECT MATTER OF THE PRESENT APPEAL, HAS NO LE GS TO STAND AND THEREFORE THE PENALTY BE DELETED. 4. THE LEARNED D.R. FAIRLY AGREED WITH THE CONTENTION AND THE ARGUMENTS OF THE LEARNED A.R. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E MATERIAL ON RECORD. WE FIND THAT THE QUANTUM APPEAL HAS BEEN DE CIDED BY THE ORDER OF THE COORDINATE BENCH IN ITA NO. 4494/MUM/2012 FOR A .Y. 2003-04 WHEREIN THE REASSESSMENT PROCEEDINGS UNDER SECTION 147 HAS BEEN DECLARED TO BE INVALID AND THEREFORE IN VIEW OF THE SAID ORDER, THE PENALTY LEVIED BY THE AO AND SUSTAINED BY THE CIT(A) IS ORD ERED TO BE DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH JANUARY, 2018. SD/ - SD/ - (D.T. GARASIA) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 24 TH JANUARY, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -8, MUMBAI 4. THE CIT - 3, MUMBAI 5. THE DR, H BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.