DCIT 5(3)(1), MUMBAI V. REGENCY HOTELS P.LTD, MUMBAI

ITA 1916/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1429 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 26-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D G PANSARI

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE HONBLE SH. SANDEEP GOSAIN, JM & HONBLE SH. G. MANJUNATHA , AM ./ I.T.A. NO . 1916/MUM/2018 ( / ASSESSMENT YEAR: 2011 - 12 ) DCIT 5(3)(1) ROOM NO. 519, 5 TH FLOOR, AAYAKAR BHAVAN, MUMBAI - 400 020 / VS. M/S REGENCY HOTELS PVT. LTD. 101, PRIME CORPORATE PARK, NEAR ITC GRAND MARATHA HOTEL, SAHAR ROAD, ANDHERI (EAST), MUMBAI - 400 099 ./ ./ PAN NO. A ABCR9766J ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI D. G. PANSARI, DR / RESPONDENTBY : SHRI HARI RAHEJA, AR / DATE OF HEARING : 3 0.04 .201 9 / DATE OF PRONOUNCEMENT : 30.04.2019 / O R D E R PER SANDEEP GOSAIN, J UDICIAL MEMBER : THE P RESENT APPE AL FILED BY THE REVENUE IS AGAINST THE ORDER OF LD. CIT (APPEAL) 10 , MUMBAI DATED 22.12.17 F OR AY 2011 - 12 . 2 I.T.A. NO. 1916 /MUM/201 8 M/S REGENCY HOTELS PVT. LTD. 2. AT THE VERY OUTSET LD. AR DRAWN OUR ATTENTION TO THE ORDER OF HONBLE ITAT IN QUA NTUM APPEAL BEARING ITA NO. 2715/MUM/2015 FOR AY 2011 - 12 DATED 16.08.17 IN ASSESSEES OWN CASE, WHEREIN THE ADDITIONS HAVE ALREADY BEEN DELETED. 3. ON PERUSAL OF THE SAID ORDER OF HONBL E ITAT, WE FIND THAT THE ADDITION HAS ALREADY BEEN DELETED BY ALLOWING THE GROUND OF APPEAL IN F AVOUR OF THE ASSESSEE BY HOLDING THAT ASSESSEE HAD SET UP ITS BUSINESS DURING THE YEAR AND THEREFORE HAD INCURRED LEGITIMATE EXPENSES, THEREFORE THE SAME WERE ALLOWED . THIS ORDER REFERRED BY ASSESSEE HAS ATTAINED FINALITY AS REVENUE HAS NOT PLACED ON RECOR D ANY MATERIAL TO SHOW THAT APPEAL AGAINST THE SAID ORDER DATED 16.08.17 HAS BEEN FILED BEFORE HONBLE HIGH COURT. THE PENALTY IN THE PRESENT CASE WAS BORNE OUT FROM THE ADDITIONS MADE IN THE ORDER OF ASS ESSMENT AND SINCE THE ADDITIONS HAVE ALREADY BEEN DELETED BY ITAT , THEREFORE THE RE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY AND HENCE IN SUCH A CASE NO PENALTY CAN SURVIVE AND IS THUS LIABLE TO BE CANCELLED. ON THIS PROPOSITION, WE RELY UPON THE DECISION OF HONBLE SUPREME COURT IN THE CA SE OF K. C. BUILDER & ANOTHER VRS. ACIT 265 ITR 562 . 3 I.T.A. NO. 1916 /MUM/201 8 M/S REGENCY HOTELS PVT. LTD. 4. IN VIEW OF THE ABOVE FACTS, CIRCU MSTANCES AND DISCUSSION, WE UPHOLD THE ORDER OF LD. CIT(A) IN DIRECTING THE AO TO DELETE THE PENALTY. IT IS ORDERED ACCORDINGLY. 5 . IN THE NET RESULT, THE APPEAL F ILED BY THE REVENUE STANDS DISMISSED WITH NO ORDER AS TO COST. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL , 2019. SD/ - SD/ - ( G. MANJUNATHA ) (SANDEEP GOSAIN) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 30 . 04 .201 9 SR.PS . DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI