VISION, MUMBAI V. ACIT 19(3), MUMBAI

ITA 2377/MUM/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3485 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 09-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SREEDHAR
• Assessee Lawyers: JIGNESH NAGDA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F , MUMBAI , , BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI ASHWANI TANEJA , ACCOUNTANT MEMBER ITA NO. : 2377 /MUM/201 4 (ASSESSMENT YEAR: 200 7 - 0 8 ) M/S VISION , 49/2358, 1 ST FLOOR, BANDRA SAIKRUPA CO - OP HSG. SOC. LTD., BANDRA (EAST), MUMBAI - 400 051 . PAN: AA EFV 5989 H VS ASST. COMMISSIONER OF INCOME TAX - 19( 3 ) , MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JIGNESH NAGDA RESPONDENT BY : SHRI S SREEDHAR /DATE OF HEARING : 07 - 0 7 - 201 6 / DATE OF PRO NOUNCEMENT : 07 - 0 7 - 2016 ORDER , : PER AMIT SHUKLA , J M: THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 10 .01.2014, PASSED BY CIT(A) - 30 , MUMBAI IN RELATION TO THE PENALTY PROCEEDING S UNDER SECTION 271(1)(C) FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2. THE ASSESSEE IS MAINLY AGGRIEVED BY LEVY OF PENALTY OF RS. 26,25,651 / - ON ACCOUNT OF DISALLOWANCE OF RS.48,49,600/ - CLAIMED BY THE ASSESSEE ON PAYMENT OF PROFESSIONAL SERVICES RENDERED BY M/S NO VA CORPORATE SERVICES PVT LTD. 2 M/S VISI ON ITA 2377/MUM/2014 3. AT THE OUTSET, THE LD. COUNSEL SUBMITTED THAT IN THE QUANTUM PROCEEDINGS, THE TRIBUNAL HAS DELETED THE ADDITION, THEREFORE, PENALTY LEVIED UNDER SECTION 271(1)(C) ON SUCH A DISALLOWANCE CANNOT BE SUSTAINED. 4. THE LD. DR ALSO ADMITTED THAT, THIS ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL. 5. IN VIEW OF THE AFORESAID FACT THAT, IN THE QUANTUM PROCEEDINGS, THE TRIBUNAL VIDE ORDER DATED 13.04.2016 IN ITA NO.8501/MUM/2010 HAS DEALT THIS ISSUE IN DETAIL AND HAS DELETED THE SAID ADDITION THEREFORE, THE ENTIRE BASIS OF LEVYING THE PENALTY GOES. THE FINAL CONCLUSION OF THE TRIBUNAL IN THE QUANTUM ORDER DELETING THE ADDITION READS AS UNDER: - 4.4.3 WE FIND THAT THE FACTUAL MATRIX OF THE ASSESSEES IN THE CA SE ON HAND TO BE SIMILAR TO THE FACTS OF THE ABOVE MENTIONED CASES AND THEREFORE RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. NIKUNJ EXIMP ENTERPRISES (P) LTD. (2013) 372 ITR 619 (BOM) AND OF THE HON'BLE GUJAR AT HIGH COURT IN THE CASE OF CIT VS. MUNDRA PORT AND SEZ LTD. (2014) 45 TAXMANN.COM 381 (GUJ) WE HOLD IN FAVOUR OF THE ASSESSEE AND DIRECT THE AO TO DELETE THE DISALLOWANCE OF RS. 48,49,624/ - CLAIMED BY THE ASSESSEE AS PAYMENT FOR PROFESSIONAL SERVICES REND ERED BY NOVA CORPORATE SERVICES P. LTD. AND CONSEQUENTLY ALLOW THE ASSESSEES CLAIM. ASSESSEES GROUNDS RAISED AT S.NO. 1 (A TO E) IS ALLOWED. ACCORDINGLY, PENALTY LEVIED ON SUCH DISALLOWANCE HAS NO LEGS TO STAND. ACCORDINGLY, WE DELETE THE PENALTY L EVIED UNDER SECTION 271(1)(C). 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED . 3 M/S VISI ON ITA 2377/MUM/2014 ORDER PRONOUNCED IN THE OPEN COURT ON 7TH JULY, 2016 SD/ - SD/ - ( ) ( ) ( ASHWANI TANEJA ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICI AL MEMBER MUMBAI, DATE: 7 TH JULY, 2016 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3 ) THE C IT ( A ) 30 , MUMBAI . 4 ) THE C IT 19 , MUMBAI 5 ) , , / THE D.R. F BENCH, MUMBAI. 6 ) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS