CHAT COMPUTERS LTD ( FORMERLY KNOWN AS CHAT COMPUTERS P. LTD, MUMBAI V. ASST CIT CIR -40, MUMBAI

ITA 2375/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3938 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 23-07-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 10-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A C TEJPAL
• Assessee Lawyers: MANSI SHINGALA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH , MUMBAI , !!' !!' !!' !!' , , # # # # BEFORE SHRI RAJENDRA SINGH, AM, AND SHRI SANJAY GARG, JM /. I.T.A. NO.2375/MUM/2012 ( $' $' $' $' %' %' %' %' / ASSESSMENT YEAR: 2003-04) CHAT COMPUTERS LTD (FORMERLY KNOWN AS CHAT COMPUTERS PVT. LTD., BHUPEN CHAMBERS, GROUND FLOOR, 9, DALAL STREET, FORT, MUMBAI 400 023 $ $ $ $ / VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 40, MUMBAI . & /. ' /. PAN/GIR NO. : AABCC1122B ( &( / APPELLANT ) : ( )*&( / RESPONDENT ) &( + / APPELLANT BY : SHRI RAJIV KHANDELWAL & MANSI SHINGALA )*&( + / RESPONDENT BY : SHRI A.C. TEJPAL $ - / DATE OF HEARING : 23. 07. 2013 /0% - /DATE OF PRONOUNCEMENT : 23 .07. 2013 1 / O R D E R PER :RAJENDRA SINGH (AM) THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 16.03.2012 OF CIT(A)- 36 MUMBAI, FOR THE ASSESSMENT YEAR 2003-04. THE DISPUTE RAISED BY THE ASSESSEE IN THIS APPEAL IS REGARDING LEVY OF PENALTY U/S 271(1)(C) O F THE INCOME TAX ACT. 2. THE FACTS IN BRIEF ARE THAT THE AO IN THE ASSESS MENT ORDER HAD DISALLOWED THE INTEREST OF RS. 9,52,48,613/-. THE AO ALSO INITIATED THE PENALT Y PROCEEDINGS U/S 271(1)( C) OF THE INCOME TAX ACT IN RELATION TO THE SAID ADDITION AND LEVIE D PENALTY OF RS. 3,60,00,000/-. IN APPEAL 2 2375 M 2013,(AY 2003-04) CHAT COMPUTERS LTD. VS. ACIT CIT(A) UPHELD THE PENALTY IS LEVIED, AGGRIEVED BY WHICH THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE RECO RDS AND CONSIDERED THE MATERIAL ON RECORD CAREFULLY. WE FIND THAT THE TRIBUNAL IN THE ORDER DATED 20 TH JANUARY, 2012 IN ITA NO. 4819/MUM/ 2007, HAS SET ASIDE THE ADDITION OF RS. 9 ,52,48,613/- TO THE FILE OF THE AO. SINCE THE VERY ADDITION BASED ON WHICH PENALTY HAS BEEN L EVIED HAS BEEN RESTORED TO THE AO, PENALTY CANNOT SURVIVE. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE PENALTY LEVIED. THE AO WILL BE FREE TO INITIATE PENALTY PROCEEDINGS IF DEEMED FIT IN THE FRESH ASSESSMENT PROCEEDINGS. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. -3 $'- 44 5- - 6 4 ORDER PRONOUNCED IN THE OPEN COURT ON 23 TH DAY OF JULY, 2013 . 1 /0% $3 23.07.2013 0 ! SD/- SD /- ( SANJAY GARG ) ( RAJENDRA SINGH ) /JUDICIAL MEMBER 4 / ACCOUNTANT MEMBER MUMBAI: $4 DATED : 23. 07.2013 $ . /. PRAMOD KUMAR, PS 1 1 1 1 )- )- )- )- 9%- 9%- 9%- 9%- / 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 FILE 1$ 1$ 1$ 1$ / BY ORDER, > >> > / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI.