M/s. ITT Corporation India Pvt. Ltd., Baroda V. The DY.CIT, Circle-1(2), Baroda

ITA 1914/AHD/2014

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 2920 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 10-08-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 23-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Transfer pricing

Judgement Text

IT(TP)A NO.1914 /AHD/2014 ASSESSMENT YEAR: 2009-10 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT AND PRAMOD KUM AR, VICE PRESIDENT] IT(TP)A NO.1914/AHD/2014 ASSESSMENT YEAR: 2009-10 ITT CORPORATION INDIA PVT. LTD. .... APPELLANT PLOT NO.713, MANJUSAR GIDC, SAVLI ROAD, SAVLI, VADODARA 391 770. [PAN: AABCI 7013 D] VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(2), BARODA. ...... RESPONDENT APPEARANCES BY DHINAL SHAH FOR THE APPELLANT LALIT P. JAIN FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 05.12.2018 DATE OF PRONOUNCEMENT : 04.03.2019 O R D E R PER PRAMOD KUMAR, VICE PRESIDENT: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HA S CHALLENGED CORRECTNESS OF THE ORDER DATED 21.03.2014 PASSED BY THE LEARNED CI T(A), BARODA IN THE MATTER OF ASSESSMENT UNDER SECTION 271G OF THE INCOME-TAX ACT , 1961, FOR THE ASSESSMENT YEAR 2009-10. 2. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, OUR ATTENTION WAS DRAWN TO THE APPLICATION FOR ADMISSION OF FOLLOWING GROUND OF AP PEAL: THAT THE ORDER OF THE LD. CIT(A)-I, BARODA IN CONF IRMING THE ORDER OF THE LD. TPO-II, AHMEDABAD IN THE LEVY OF PENALTY U/ S. 271G AMOUNTING TO RS.93,67,851/- IS LIABLE TO BE QUASHED AS VOID A B INITIO AS BEING PASSED WITHOUT ANY AUTHORITY IN LAW. 3. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PE RUSED THE MATERIAL ON RECORD, AND HAVING REGARD TO THE FACT THIS ADDITIONAL GROUN D OF APPEAL ONLY RAISES A QUESTION IT(TP)A NO.1914 /AHD/2014 ASSESSMENT YEAR: 2009-10 PAGE 2 OF 2 OF LAW ARISING OUT OF UNDISPUTED FACTS ON RECORD, W E DEEM IT APPROPRIATE TO ADMIT THE ABOVE ADDITIONAL GROUND OF APPEAL. ORDERED, ACCORD INGLY. 4. TO ADJUDICATE ON THIS APPEAL, IT IS ENOUGH TO TA KE NOTE OF THE FACT THAT THE IMPUGNED PENALTY UNDER SECTION 271G WAS IMPOSED BY THE TRANSFER PRICING OFFICER, VIDE HIS ORDER DATED 25.06.2012, WHEREAS UNTIL THE AMENDMENT WAS MADE TO SECTION 271G, VIDE FINANCE (NO.2) ACT 2014, ONLY THE ASSESS ING OFFICER OR THE CIT(A) HAD THE STATUTORY POWERS TO IMPOSE SUCH PENALTY. WHEN THE ABOVE LEGAL POSITION WAS POINTED OUT TO THE LEARNED DEPARTMENTAL REPRESENTAT IVE, HE DID NOT HAVE MUCH TO SAY BUT HE PLACED HIS RELIANCE ON THE STAND OF THE AUTHORITIES BELOW. 5. AS LEARNED COUNSEL FOR THE ASSESSEE RIGHTLY POIN TS OUT, THE POWERS TO IMPOSE PENALTY UNDER SECTION 271G, TILL 01.10.2014, DID NO T VEST IN THE TRANSFER PRICING OFFICER. THE IMPUGNED PENALTY ORDER WAS PASSED ON 25.06.2012, AND WAS, THEREFORE, FOR THIS SHORT REASON ALONE, UNSUSTAINAB LE IN LAW. THE LEGAL POSITION IS CLEAR AND UNAMBIGUOUS. IN VIEW OF THE ABOVE DISCUS SIONS, WE VACATE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE IMPUGNED PENAL TY OF RS.93,67,851/-. THE ASSESSEE GETS THE RELIEF ACCORDINGLY. 6. AS THE APPEAL IS ALLOWED ON THE ABOVE TECHNICAL GROUND, WE SEE NO NEED TO DEAL WITH OTHER ISSUES RAISED IN THE APPEAL. THESE ISSUES ARE AS ON NOW PURELY ACADEMIC. 7. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCE D IN THE OPEN COURT TODAY ON THE 4 TH DAY OF MARCH, 2019. SD/- SD/- JUSTICE P P BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) AHMEDABAD, DATED THE 4 TH DAY OF MARCH, 2019 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF TAKING DICTATION: 04.03.2018. 2. DATE OF TYPING & DRAFT ORDER PLACED BEFORE THE D ICTATING MEMBER: 04.03.2018. 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: ......... 04.03.2018............... ........ 4. DT. ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT: ....... 04.03.2018............... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 04.03.2018.. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: ..... 7. THE DT. ON WHICH THE FILE GOES TO THE ASTT. REGISTR AR FOR SIGNATURE ON THE ORDER: .................. ....... 8. DATE OF DESPATCH OF THE ORDER: .................... ....