L&T Shipbuilding Limited, CHENNAI V. ACIT Corporate Circle 4(1), CHENNAI

ITA 1742/CHNY/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7578 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ी वी दुगा राव, ाियक सद एवं ी जी मंजूनाथा, लेखा सद के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1742/Chny/2019 िनधा रण वष /Assessment Year: 2012-13 M/s. L&T Shipbuilding Ltd., P.O Box No.979, Mount Poonamallee Road, Manapakkam, Chennai – 600 089. [PAN: AABCL 4108N] Vs. The Dy. Commissioner of Income Tax (OSD), Corporate Circle-4, Chennai. ( अपीलाथ /Appellant) (&'थ(/Respondent) अपीलाथ( की ओर से/ Appellant by : Mr. Ashik Shah, C.A &'थ( की ओर से /Respondent by : Mr. AR V Sreenivasan, Addl. CIT सुनवाई की तारीख/Date of Hearing : 03.11.2021 घोषणा की तारीख /Date of Pronouncement : 26.11.2021 आदेश / O R D E R Per V. Durga Rao, Judicial Member: This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals)-8, Chennai in I.T.A No.181/15-16 dated 04.04.2019 relevant to the Assessment Year 2012-13. I.T.A No.1742/Chny/2019 :- 2 -: 2. In this case, the Assessing Officer (AO) has initiated the penalty proceedings and imposed penalty and the same is confirmed by the Ld. CIT(A) on the ground that the assessee-company had not offered the interest on bank deposits as well as income from sale of DEPB licenses for taxation. The assessee-company was obligated to offer this income of Rs. 4,15,54,233/- as pre operative income under the head income from other sources. Non offering the income for taxation is deliberate attempt and tax evasive act of filing wrong particulars and concealing the taxable income attracts penalty u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter "the Act"). In view of the above observation, the Ld. CIT(A) has confirmed the penalty levied by the A.O of Rs. 1,50,00,000/- u/s. 271(1)(c) of the Act. 3. On being aggrieved, the assessee carried the matter in appeal before the Tribunal. 4. The ld. counsel for the assessee has submitted that the quantum appeal filed by the assessee before the ITAT, the Hon’ble ITAT has set aside the order passed by the Ld. CIT(A) and remitted the matter back to the A.O to adjudicate the issue afresh in accordance with law. He has further submitted that in view of the order passed by the Tribunal in the quantum appeal, penalty levied by the Ld. CIT(A) cannot survive and submitted that the same may be remitted back to the A.O. I.T.A No.1742/Chny/2019 :- 3 -: 5. On the other hand, the Ld. D.R has not raised any objection to the submission of the Ld. counsel for the assessee. 6. We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. We find that once the Tribunal has set aside the quantum appeal and remitted the matter back to the A.O to adjudicate the issue afresh, the penalty levied by the A.O on same count cannot survive and therefore, we remit the penalty proceedings also to the file of the A.O to initiate proceedings as per law after deciding the quantum appeal. In view of the above, we cancel the order passed by the Ld. CIT(A) and remit the matter back to the file of A.O to decide the issue afresh in accordance with law. Thus, the appeal filed by assessee is allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26 th November, 2021 in Chennai. Sd/- Sd/- ( ी जी मंजूनाथा) (G. MANJUNATHA) लेखा सद /ACCOUNTANT MEMBER (वी दुगा राव) (V. DURGA RAO) ाियक सद /JUDICIAL MEMBER चे ई/Chennai, दनांक/Dated: 26 th November, 2021. EDN/- आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु1/CIT 5. िवभागीय &ितिनिध/DR 6. गाड फाईल/GF