Deputy Commissioner of Income-tax, Pnvel Circle, Panvel V. M/s. Johnson Matthey Chemicals India Pvt.Ltd, Raigad

ITA 1724/PUN/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0164 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 01-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE – VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA Nos.1723 & 1724/PUN/2018 निर्धारण वषा / Assessment Years : 2006-07 & 2009-10 DCIT, Panvel Circle, Panvel Vs. M/s. Johnson Matthey Chemicals India Pvt. Ltd. Plot No.6A, MIDC Industrial Estate, Taloja, Panvel, Dist. Raigad – 410208 PAN: AABCJ1620M Appellant Respondent आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : These two appeals by the Revenue are directed against a common order dated 09.08.2018 passed by ld. CIT(A) deleting penalty of Rs.3.89 crores and Rs.1.94 crores imposed by AO u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) in relation to the assessment years 2006-07 and 2009-10. Since both the appeals are based on similar facts and common grounds, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. Assessee by Shri Rajendra Agiwal Revenue by Shri S.P. Walimbe Date of hearing 14-01-2022 Date of pronouncement 14-01-2022 ITA Nos.1723 & 1724/PUN/2018 2 2. The assessee is engaged in manufacture and sale of various types of catalysts. A return was filed for the A.Y. 2006-07 declaring Nil income. The assessment was completed determining income from Business at Rs.18.82 crores and odd, which was set off against brought forward depreciation allowance for the similar amount, resulting into total income at Nil. The matter of additions was assailed before the ld. CIT(A) and then the Tribunal. It is an admitted position that the Tribunal deleted the additions, which are forming the subject matter of instant penalty. When the penalty matter came up before the ld. CIT(A), he observed in the common order that the Tribunal had deleted the quantum additions. Taking cue from the order passed by the Tribunal for the A.Y. 2004-05 deleting penalty u/s 271(1)(c) of the Act when the quantum additions were deleted, the ld. CIT(A) directed to delete the instant penalty. 3. Similar is the position for the A.Y. 2009-10 also. A return was filed declaring total income at Rs.25.03 crores and odd. The assessment was completed determining total income at Rs.31.54 crores and odd. The additions made by the AO, constituting the bedrock for the imposition of penalty u/s 271(1)(c) of the Act, were ITA Nos.1723 & 1724/PUN/2018 3 finally deleted by the Tribunal. Ex consequenti, the ld. CIT(A) deleted the penalty. 4. We have heard both the sides through Virtual Court and gone through the relevant material on record. It is an admitted position that the penalty was levied by the AO for both the years on the basis of certain additions which got eventually deleted by the Tribunal. Nothing has been brought on record to demonstrate that the orders passed by the Tribunal in quantum proceedings have been reversed or modified by the Hon’ble High Court in any manner. In view of the fact that when the very foundation for the imposition of penalty u/s 271(1)(c) for both the years ceases to exist with the deletion of additions in quantum proceedings by the Tribunal, there remains no case for sustaining such penalty. We, therefore, countenance the view taken by the ld. CIT(A) in deleting penalty for both the years. 5. In the result, both the appeals are dismissed. Order pronounced in the Open Court on 14 th January, 2022. Sd/- Sd/- (R.S.SYAL) (S.S. VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; दिन ांक Dated : 14 th January, 2022 GCVSR ITA Nos.1723 & 1724/PUN/2018 4 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A)-2, Thane 4. 5. 6. The PCIT-2, Thane DR, ITAT, ‘A’ Bench, Pune ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 14-01-2022 Sr.PS 2. Draft placed before author 14-01-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *