LUPIN INTERNATIONAL, MUMBAI V. ITO 19(2)(3) ( NOW 22(2)(3), MUMBAI

ITA 2295/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3913 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 22-02-2016
• Assessment Year: 1997-1998
• Appeal Filed On: 21-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KEMWAL

Judgement Text

LUPIN INTERNATIONAL ITA NO. 2295 /MUM/201 5 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A , MUMBAI , , BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI RA JESH K UM AR , ACCOUNTA NT MEMBER ITA NO. : 2295 /MUM/20 1 5 (ASSESSMENT YEAR: 1997 - 9 8 ) LUPIN INTERNATIONAL , 159, CST ROAD, KALINA, MUMBAI - 400 098 .: PAN: AABFL 2573 J VS ITO - 19(2)(3), PIRAMAL CHAMBERS, MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : MS VASANTI PATEL RESPONDENT BY : SHRI S S KEMWAL /DATE OF HEARING : 22 - 02 - 201 6 / DATE OF PRONOUNCEMENT : 22 - 02 - 201 6 ORDER : . . : PE R AMIT SHUKLA , JM : THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 09.03.2015 PASSED BY CIT(A) - 3 4 , MUMBAI IN RELATION TO THE PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) FOR AY 1997 - 98 . THE ASSESSEE IS MAINLY AGGRIEVED BY LEVY OF PENALTY OF RS. 39 LAKHS UNDER SECTION 271(1)(C) ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE AGGREGATING TO RS. 96,94,638/ - IN RESPECT OF INTEREST / DISCOUNTING CHARGES PAID TO LU P IN LABORATORIES LTD. 2. AT THE OUTSET, THE LD. COUNSEL SUBMITTED THAT , IN THE QUANTUM PROCEEDINGS, THE TRIBUNAL VIDE ORDER DATED 01.06.2015 HA S DELETED THE SAID ADDITION AND THEREFORE, THE IMPUGNED PENALTY PROCEEDINGS HAVING NO LEGS TO STAND. LUPIN INTERNATIONAL ITA NO. 2295 /MUM/201 5 2 3. THE LD. DR ALSO ADMITTED THAT, IN THE QUANTUM PROCEEDINGS THE ADDITION HAS BE EN DELETED. 4. IN VIEW OF THE AFORESAID FACT AND ALSO ON PERUSAL OF THE MATERIAL PLACED BEFORE US, WE FIND THAT THE PENALTY HAS BEEN LEVIED BY THE AO ON ACCOUNT OF DISALLOWANCE OF RS. 96,94,638/ - OUT OF ASSESSEES CLAIM OF INTEREST/BILL DISCOUNTING CHARG ES. THE TRIBUNAL IN ASSESSEES OWN CASE AFTER RELYING UPON THE TRIBUNAL DECISIONS IN THE GROUP CASES HAS DELETED THE SAID ADDITION V IDE ORDER DATED 01.06.2015. THUS, WHEN THE ADDITION ITSELF HAS BEEN DELETED, THE PENALTY ON SUCH AN AMOUNT CANNOT STAND AND ACCORDINGLY THE PENALTY OF RS. 39 LAKHS AS CONFIRMED BY THE CIT(A) STANDS DELETED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY , 2016 . SD/ - SD/ - ( ) ( ) ( RAJESH KUMAR ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 22 ND FEBRUARY , 2016 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3) THE CIT (A) - 3 4 , MUMBAI . 4 ) THE COMMISSIONER OF INCOME TAX - 2 2 , MUMBAI . 5 ) , , / THE D.R. A BENCH, MUMBAI. 6 ) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS