MAHINDRA HOLDINGS & FINANCE LTD, MUMBAI V. ASST CIT CIR 6(3), MUMBAI

ITA 1294/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2663 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 26-02-2014
• Court: TRIBUNAL
• Department Lawyers: B SATYANARAYANA RAJU
• Assessee Lawyers: M P MAHAJANI
• Keywords: Business expenditure
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER I.T.A. NO.1294/M/2014 (ASSESSMENT YEAR: 2007 - 2008 ) MAHINDRA HOLDING & FINANCE LIMITED (SINCE MERGED WITH MAHINDRA & MAHINDRA LTD), MAHINDRA TOWERS, GROUND FLOOR, WORLI ROAD NO.13, WORLI, MUMBAI 400 018. / VS. ACIT, CIRCLE 2(2), AAYAKAR BHAVAN, MUMBAI 400 020. ./ PAN : AAACM4489N ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI M.P. MAHAJANI / RESPONDENT BY : SHRI B. SATYANARAYANA RAJU, DR / DATE OF HEARING : 06.10.2016 / DATE OF PRONOUNCEMENT : 06.10.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 26.2.2014 IS AGAINST THE ORDER OF THE CIT (A) - 5, MUMBAI DATED 12.12.2013 FOR THE ASSESSMENT YEAR 2007 - 2008. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUND WHICH READS AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) ERRED IN CONFIRMING PENALTY OF RS. 1,60,87,800/ - U/S 271(1)(C) OF THE ACT WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAD NEITHER CONCEALED ANY PARTICULARS NOR FURNISHED ANY INACCURATE DETAILS OF INCOME AND THE WRITE OFF OF A BAD ADVANCES WAS A BONAFIDE CLAIM OF BUSINESS EXPENDITURE U/S 37 OF THE ACT. 2 . THE ONLY ISSUE RAISED IN THIS APPEAL RELATES TO THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. THIS PENALTY RELATES TO THE ADDITION OF RS.5,36,26,000/ - MADE BY THE AO ON ACCOUNT OF ASSESSEES CLAIM OF WRITTEN OF BAD ADVANCES. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE ORDER OF THE TRIBUNAL ON QUANTUM APPEAL, A CO PY OF WHICH IS PLACED ON RECORD AT PAGES 1 TO 6 OF THE ASSESSEES PAPER BOOK, AND SUBMITTED THAT IN THE FIRST ROUND OF THE PROCEEDINGS, 2 TRIBUNAL SET ASIDE THE ORDER OF THE CIT (A) VIDE PARA 19 OF ITS ORDER IN APPEAL ITA NO.689/M/2011, AY 2007 - 08 DATED 4.6 .2014. BEFORE US, IT IS THE PRAYER OF THE LD COUNSEL FOR THE ASSESSEE THAT SINCE, THE QUANTUM APPEAL IS SET ASIDE TO THE FILE OF THE CIT (A) TO ADJUDICATE THE ISSUE AFRESH, THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT IS ALSO REQUIRED TO BE SET ASIDE. 3. A FTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS FO THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT PAPER BOOK FILED BEFORE US, WE FIND MERIT IN THE ARGUMENT OF THE LD COUNSEL FOR THE ASSESSEE. ACCORDINGLY, WE REMAND THIS ISSUE OF PENALTY ALSO TO THE FILE OF THE CIT (A) TO ADJUDICATE THE SAME IN ACCORDANCE WITH THE OUTCOME OF THE QUANTUM APPEAL. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH OCTOBER, 2016. S D / - S D / - ( AMARJIT SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 06.10.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI