GTC INDUSTRIES LTD, MUMBAI V. ASST CIT 9(3)(2), MUMBAI

ITA 1574/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0188 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 1985-1986
• Appeal Filed On: 18-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI

Judgement Text

IN THE IN COME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH , JM ITA NO. 1574 / MUM/20 1 6 & 1575/MUM/2016 ( ASSESSMENT YEAR : 1985 - 86 & 1986 - 87 ) M/S. GTC INDUSTRIES LTD., (NOW KNOWN AS GOLDEN TOBACCO LTD., TO BACCO HOUSE, SC ROAD, VILE PARLE (W), MUMBAI 400 056 VS. ASST. CIT CEN CIR (9), R.NO.418, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 PAN/GIR NO. AAACG1421A APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI GAURAV BANSAL REVENUE BY SHRI RAM TIWARI DATE OF HEARING 03 / 07 /201 7 DATE OF PRONOUNCEME NT 05 / 07 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 16, MUMBAI DATED 30/12/2015 FOR THE A.Y.19 85 - 86 AND 1986 - 87 IN THE MATTER OF IMPOSITION OF PENALTY U/S.274(2)(AA) OF THE IT ACT. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 3. IN BOTH THE YEARS UNDER CONSIDERATION, AO MADE VARIOUS ADDITIONS AND ALSO IMPOSED PENALTY U/S.273(2)(AA) OF T HE IT ACT FOR WRONG FURNISHING OF ESTIMATE OF ADVANCE TAX PAYABLE BY ASSESSEE U/S.212(3A) OF THE IT ACT. 4. BY THE IMPUGNED ORDER, CIT(A) CONFIRMED THE ACTION OF THE AO IMPOSING PENALTY U/S.274(2)(AA) OF IT ACT. . AT THE OUTSET LEARNED AR PLACED ON RECORD THE ORDER OF THE TRIBUNAL IN THESE YEARS DATED ITA NO. 1574/MUM/2016 & 1575/MUM/2016 M/S. GTC INDUSTRIES LTD., 2 07/03/2017 IN ITA NO S . 1055/MUM/1994 & 1056/MUM/1994 FOR THE A.Y.1985 - 86 AND 1986 - 87 , WHEREIN ADDITION S SO MADE BY THE AO HA VE BEEN DELETED. LEARNED AR ALSO PLACED ON RECORD THE ORDER PASSED BY THE DCIT DATED 29/03/2017 GIVING EFFECT TO THE ABOVE ORDER OF THE TRIBUNAL WHEREIN ASSESSED INCOME OF THE ASSESSEE HAS BEEN REDUCED TO THE INCOME RETURNED BY IT. AS THE ADDITION S WITH RESPECT TO WHICH ESTIMATE OF ADVANCE TAX SO FILED BY ASSESSEE WAS FOUND TO BE WRONG HA S ALREA DY BEEN DELETED BY THE TRIBUNAL, I T WAS CONTENDED BY LEARNED AR THAT PENALTY SO LEVIED FOR FURNISHING OF ESTIMATE OF ADVANCE TAX, HAS NO LEGS TO STAND. 5. ON THE OTHER HAND, LEARNED DR RELIED ON THE ORDER OF THE AO AND CIT(A). 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE HAD ALSO GONE THROUGH THE ORDERS OF THE TRIBUNAL IN QUANTUM APPEAL DATED 07/03/2017 FOR THE A.Y. 1985 - 86 AND 1986 - 87 WHEREIN ADDITION S SO MADE HA VE BEEN DELETED BY THE TRI BUNAL. WE HAVE ALSO GONE THROUGH THE ORDER PASSED BY THE DCIT DATED 29/03/2017 FOR THE A.Y.1985 - 86, BEING THE ORDER GIVING EFFECT TO THE ORDER OF THE TRIBUNAL REVISING INCOME AT RS. 3,84,14,220/ - WHICH IS SAME AS THE DECLARED INCOME BY THE ASSESSEE AS PER T HE RETURN OF INCOME FILED ON 28/06/1985. AS THE ADDITIONS FOR WHICH ESTIMATE OF ADVANCE TAX FILED BY THE ASSESSEE WAS HELD TO BE WRONG BY THE AO, HAVE ALREADY BEEN DELETED BY THE TRIBUNAL , T HE PENALTY SO IMPOSED U/S.273 (2) (AA) HAS NO LEGS TO STAND. ITA NO. 1574/MUM/2016 & 1575/MUM/2016 M/S. GTC INDUSTRIES LTD., 3 7. S IMILARLY, ADDITIONS IN THE A.Y.1986 - 87 HAVE ALSO BEEN DELETED BY THE ORDER OF THE TRIBUNAL DATED 07/03/2017, FOR FURNISHING ESTIMATE OF ADVANCE TAX THE PENALTY SO IMPOSED HAS NO LEGS TO STAND. ACCORDINGLY, WE DIRECT THE AO TO DELETE PENALTY SO IMPOSED U/S. 274 (2)(AA) OF THE IT ACT. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 05 / 07 /2017 S D/ - ( AMARJIT SINGH ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 05 / 07 / 201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//