DCIT, CENTRAL CIRCLE-1(1), CHENNAI V. M/S. INDUS MOBILE DISTRIBUTION PRIVATE LIMITED, CHENNAI

ITA 136/CHNY/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5888 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 28-02-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Set aside

Judgement Text

आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी महावीर िसंह, उपाȯƗ एवं माननीय ŵी मनोज कु मार अŤवाल ,लेखा सद˟ के समƗ। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.136/Chny/2022 (िनधाŊरण वषŊ / Assessment Year: 2011-12) DCIT Central Circle-1(1), Chennai. बनाम / Vs. M/s. Indus Mobile Distribution Pvt. Ltd. No.281, TTK Road, Alwarpet, Chennai – 600 018. ̾थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AABCI-6304-D (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ की ओरसे/ Assessee by : Shri Shrenik Chorddia (C.A) – Ld. AR ŮȑथŎ की ओरसे/Revenue by : Shri P. Sajit Kumar (JCIT)-Ld. DR सुनवाई की तारीख/Date of Hearing : 19-07-2022 घोषणा की तारीख /Date of Pronouncement : 19-07-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by Revenue for Assessment Year (AY) 2011-12 arises out of the order of learned Commissioner of Income Tax (Appeals)-18, Chennai [CIT(A)] dated 27.12.2021 deleting penalty of Rs.180 Lacs as levied by Ld. AO vide penalty order dated 30.03.2019. The grounds taken by the Revenue are as under: 1. The order of the Id. Commissioner of IT. (Appeals) is erroneous on facts of the case and in law. 2.1. The Id. CIT(A) erred in directing the assessing officer to delete the penalty levied u/s.271(1)(c) of Rs.1.80 crores, on the ground that the quantum additions ITA No.136/Chny/2022 - 2 - relating to the levy of penalty has been deleted and the penalty has no legs to stand. 2.2. It is submitted that appeal is being preferred before the Hon'ble Madras High Court against the Hon'ble Chennai ITATs order in ITA No.915/Chny/2019 dated 16.09.2021, wherein, the quantum additions relating to levy of penalty u/s. 271(1)(c) were deleted. 3. For these grounds and any other ground including amendment of grounds that may be raised during the course of the appeal proceedings, the order of Id. CIT(A) may be set aside and that of the Assessing Officer be restored. 2. During the course of hearing, it emerges that the quantum additions against which penalty has been levied, has been deleted by Tribunal and taking note of the same, Ld. CIT(A) has deleted the impugned penalty. The Ld. Sr. DR submitted that the revenue is in further appeal before Hon’ble High Court of Madras against the quantum order of the Tribunal. 3. We find that the assessee was saddled with various auditions aggregating to Rs.500.98 Lacs on account of depreciation, advertisement and professional fees. The same has already been enumerated in opening paragraph of penalty order dated 30.03.2019. The Ld. AO levied impugned penalty of Rs.180 Lacs since the quantum additions were confirmed in the first appellate order. However, during appellate penalty proceedings, it transpired that the penalty stood deleted by Tribunal vide ITA No.915/Chny/2019 order dated 16.09.2021. Accordingly, it was held by Ld. CIT(A) that the penalty would have no legs to stand and penalty has become infructuous. Thus the impugned penalty was deleted. It was further held that in case any further appellate forum reverses the decision on quantum, it was open for AO to take action on penalty as per Sec. 275(1A) of the Act. Aggrieved, the revenue is in further appeal before us. ITA No.136/Chny/2022 - 3 - 4. Before us, the position as noted by Ld. CIT(A) in the impugned order remain undisturbed. The Tribunal order deleting quantum addition still stand. Therefore, we do not find any reason to interfere in the impugned order. 5. The appeal stand dismissed. Order pronounced on 19 th July, 2022. Sd/- (MAHAVIR SINGH) उपाȯƗ /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER चेɄई / Chennai; िदनांक / Dated : 19-07-2022 EDN/- आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ/CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF