DCIT CENT. CIR. - 8(4), MUMBAI V. BERMACO ENERGY LTD., NAVI MUMBAI

ITA 128/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8331 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH
• Section: 271(1)(c); 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI RAJESH KUMAR , HON'BLE ACCOUNTANT MEMBER ITA NO. 128 /MUM/201 8 (A.Y: 2006 - 07) D .C.I.T CENTRAL CIRCLE 8 ( 4 ) ROOM NO. 658, 6 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400 020 V. M/S. BERMACO ENERGY LTD., D - 73/1, TTC INDUSTRIAL AREA, MIDC ROAD, TURBHE, NAVI MUMBAI 400 705 PAN: AACCB 7021 P (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI CHAUDHARY ARUNKUMAR SINGH DATE OF HEARING : 28.03.2019 DATE OF PRONOUNCEMENT : 29 .03.2019 O R D E R PER C. N. PRASAD (JM) 1. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 50, MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] DATED 24.10.2017 FOR THE A.Y. 2006 - 07 IN SUSTAINING THE PENALTY LE VIED U/S. 271(1)(C) OF THE ACT. 2. INSPITE OF ISSUE OF NOTICE THROUGH RPAD , NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT WAS SOUGHT. IN THE CIRCUMSTANCES , WE DISPOSE OFF TH IS AP PEAL ON HEARING THE LD.DR. 2 ITA NO.128/MUM/2018 (A.Y: 2006 - 07) M/S. BERMACO ENERGY LTD., 3. LD. DR SUBMITTED THAT THE LD.CIT(A) DELETED THE PENALTY TAKING NOTE OF THE FACT THAT THE TRIBUNAL IN ITA.NO.4309/MUM/2014 BY ORDER DATED 13.09.2017 DELETED THE ADDITION MADE U/S. 68 OF THE ACT IN THE ASSESSMENT MADE U/S. 143(3) OF THE ACT. LD. DR FAIRLY SUBMITS THAT SINCE THE QUANTUM ADDITION IS DELETED BY THE TRIBUNAL PENALTY MAY NOT SURVIVE. 4. ON A PERUSAL OF THE ORDER OF THE LD.CIT(A) , WE NOTICE THAT THE LD.CIT(A) DELETED THE PEN ALTY SINCE THE TRIBUNAL IN ITA.NO. 4309/MUM/2014 BY ORDER DATED 13.09.2017 DELETED THE QUANTUM ADDITION MADE U/S. 68 OF THE ACT IN THE ASSESSMENT PROCEEDINGS . SINCE QUANTUM ADDITION IS DELETED BY THE TRIBUNAL HE OBSERVED THAT THE PENALTY LEVIED WILL NOT SURVIVE IN VIEW OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF KC BUILDERS V. ACIT [265 ITR 562]. T HUS, WE DO NOT FIND ANY INFIRMITY I N THE ORDER PASSED BY THE LD.CIT(A) IN DELETING THE PENALTY U/S. 271(1)(C) OF THE ACT . ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD.CIT(A) AND REJECT THE GROUND S RAISED BY THE REVENUE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 29 TH MARCH, 2019 SD/ - SD/ - ( RAJESH KUMAR) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 29 / 0 3/2019 GIRIDHAR , S R. PS 3 ITA NO.128/MUM/2018 (A.Y: 2006 - 07) M/S. BERMACO ENERGY LTD., COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM