The DCITA'bad Circle-1, Ahmedabad V. Arvind Fashion Ltd., Ahmedabad

ITA 1851/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9778 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-01-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 24-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: P M MEHTA WITH SHRI G M THAKOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER DCIT, CIR. 1, AHMEDABAD (APPELLANT) VS ARVIND FASHIONS LTD (NOW MERGED WITH ARVIND LTD), ARVIND MILLS PREMISES, NARODA ROAD, AHMEDABAD PAN: AABCA2402L (RESPONDENT) REVENUE BY : S H RI DINESH SINGH , SR. D . R. ASSESSEE BY: S H RI P.M. MEHTA WITH SHRI G.M. THAKOR , A.R. DATE OF HEARING : 29 - 01 - 2 016 DATE OF PRONOUNCEMENT : 29 - 01 - 2 016 / ORDER P ER BENCH : - THI S REVENUE S APPEAL FOR A.Y. 2003 - 04 , AR ISES FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 28 - 06 - 2012 IN APPEAL NO. CIT(A) - VI/DCIT.CIR.1/29/11 - 12 , IN PROCEEDINGS UNDER SECT ION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT . I T A NO . 1851 A HD/20 12 A SS ESSMENT YEAR 200 3 - 04 I.T.A NO. 1851/AHD/2012 A.Y. 2003 - 04 PAGE NO DCIT VS. ARVIND FASHIONS LTD 2 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENGES THE LOWER APPELLATE ORDER DELETING SECTION 271(1)(C) PENALTY OF RS. 21,21,000/ - IMPOSED BY THE ASSESSING OFFICER IN HIS ORDER DATED 19 - 05 - 2011 AS ARISING FROM DISALLOWANCE OF ROYALTY PAYMENT AMOUNTI NG TO RS. 57,71,500/ - FOR NON DEDUCTION OF TDS THEREUPON. THE ASSESSEE SUBMITS AS THE OUTSET THAT THE IMPUGNED DISALLOWANCE ALREADY STAND DELETED IN QUANTUM APPEAL DECIDED ON 26 - 11 - 2012 I.E. POST INSTITUTION OF THE INSTANT PENALTY APPEAL. IT FURTHER STAT ES AT THE BAR THAT THIS LOWER APPELLATE ORDER IN QUANTUM PROCEEDINGS HAS ATTAINED FINALITY SINCE NO APPEAL HAS BEEN FILED AGAINST THE SAME. A COPY OF THE SAID ORDER IS ALSO PLACED ON RECORD. THE REVENUE IS UNABLE TO REBUT THIS FACTUAL POSITION. 3. HEA RD BOTH SIDES. IT HAS COME ON RECORD THAT THE ASSESSEE HAS ALREADY SUCCEEDED IN QUANTUM PROCEEDINGS QUA THE IMPUGNED DISALLOWANCE OF ROYALTY PAYMENT FORMING THE VERY BASIS FOR INITIATION OF THE INSTANT PENALTY PROCEEDINGS. WE OBSERVE IN THESE FACTS THAT THE PENALTY IN QUESTION HAS NO LEGS TO STAND. WE ACCORDINGLY REJECT THE REVENUE S SOLE SUBSTANTIVE GROUND. 4. THIS REVENUE S APPEAL IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 29 - 01 - 201 6 SD/ - SD/ - ( PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 29 /01/2016 AK I.T.A NO. 1851/AHD/2012 A.Y. 2003 - 04 PAGE NO DCIT VS. ARVIND FASHIONS LTD 3 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,