PRAJA EXPORTS, MUMBAI V. ITO 19(1)(1), MUMBAI

ITA 1844/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87880 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2001-2002
• Appeal Filed On: 07-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: BHUPENDRA SHAH
• Section: 80HHC

Judgement Text

C IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI , BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA NO. : 1844/MUM/2013 (ASSESSMENT YEAR : 2001-02) M/S PRAJA EXPORTS, 7/153, NITYANAND NAGAR 4, S N ROAD, ANDHERI (EAST), MUMBAI - 400 069 .: PAN: AADFP 5244 Q VS ITO- 19(1)(1), PIRAMAL CHAMBERS, MUMBAI -400 012 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI BHUPENDRA SHAH RESPONDENT BY : SHRI PREMANAND J !' # $% /DATE OF HEARING : 08-12-2014 &'( # $% / DATE OF PRONOUNCEMENT : 23-01-2015 * + * + * + * + O R D E R : :: : PER VIVEK VARMA, JM: INSTANT APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) 22, MUMBAI, DATED 22.01.2013, WHEREIN THE AS SESSEE HAS CHALLENGED THE LEVY OF PENALTY OF RS. 1,94,000/- U/ S 271(1)(C) OF THE ACT, SUSTAINED BY THE CIT(A). 2. THE FACTS ARE THAT THE ASSESSEE IS A MANUFACTURE R AND EXPORTER OF READYMADE GARMENTS. THE REGULAR ASSESSMENT U/S 1 43(3) WAS FRAMED AT RS. 18,33,317/-, WHEREIN THE AO HAD FRAME D THE ASSESSMENT WITHOUT CONSIDERING THE PREMIUM ON QUOTA , FOR THE PURPOSES OF COMPUTATION OF DEDUCTION U/S 80HHC. 3. THE ISSUE WAS SUSTAINED BY THE CIT(A) AND THE MA TTER REACHED THE ITAT. THE ITAT, AFTER HEARING THE APPEAL, SET A SIDE THE ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE THE ISSUE AS PER LAW ON THE ISSUE OF DEDUCTION U/S 80HHC IN RESPECT OF EXPORT Q UOTA AFTER REFERRING TO THE FACTS. M/S PRAJA EXPORTS, ITA 1844/M/2013 2 4. IN THIS REASSESSMENT STAGE, WHEREIN THE ISSUE HA S BEEN IMPUGNED, THE PENALTY HAS BEEN LEVIED AND SUSTAINED . 5. ON GOING THROUGH THE ORDER OF PENALTY U/S 271(1) (C), AND THE ORDER OF THE ITAT IN THE QUANTUM, WE DO NOT FIND AN YTHING TO SUGGEST THAT THE CLAIM MADE BY THE ASSESSEE WAS MALA FIDE . HAD IT BEEN SO, THE ITAT IN ITA NO. 41/MUM/2009 WOULD HAVE CONFIRMED TH E DISALLOWANCE/ADDITION & THEY WOULD NOT HAVE SET ASI DE THE ISSUE FOR A FRESH ADJUDICATION. 6. THIS ITSELF IS A GOOD GROUND FOR US TO DELETE TH E PENALTY, BECAUSE THE FACTS, DETAILS AND CLAIM WHICH HAVE BEEN MADE, ARE EMERGING FROM THE DETAILS AS FILED. 7. IT IS NOT THE CASE OF THE DEPARTMENT THAT THE AS SESSEE HAD CLAIMED ANY DEDUCTION WITH A MALA FIDE INTENTION, AND WHICH IS OTHERWISE NOT PERMISSIBLE. SINCE THE ITAT ITSELF, O N FACTS FELT THAT THE CLAIM COULD BE ALLOWED, THEY SET ASIDE THE ISSUE. 8. IN SUCH A CIRCUMSTANCE, IN OUR OPINION, THE CASE OF CIT VS RELIANCE PETRO PRODUCTS (P) LTD., REPORTED IN 322 I TR 158 (SC) IS SQUARELY APPLICABLE. 9. WE, THEREFORE, SET ASIDE THE ORDER OF THE REVENU E AUTHORITIES AND DELETE THE PENALTY. 10. IN THE RESULT, THE APPEAL AS FILED BY THE ASSES SEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JANUARY, 2015. SD/- SD/- ( ) ( ) * * * * * * * * (R C SHARMA) ( VIVEK VARMA ) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI, DATE: 23 RD JANUARY, 2015 M/S PRAJA EXPORTS, ITA 1844/M/2013 3 $/ COPY TO:- 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT(A) -22, MUMBAI. 4) THE CIT-19, MUMBAI/CIT -19, MUMBAI. 5) .'/0 $! C , , / THE D.R. C BENCH, MUMBAI. 6) 012 3 COPY TO GUARD FILE. *+! / BY ORDER / / TRUE COPY / / 4 / 5 6 , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI *895! '.!. *CHAVAN, SR.PS