KPMG, MUMBAI V. JTCIT 11(2), MUMBAI

ITA 2400/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71279 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-09-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 11-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: SHEETAL JAIN; PRASHAND MAHESHWARI
• Keywords: Rectification of order
• Section: 27

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE S/SHRI B.R.MITTAL,(JM) AND SANJAY ARORA (AM) . . , , & ./I.T.A. NO.2400/MUM/2012 ( / ASSESSMENT YEAR:2003-04) KPMG LODHA EXCELUS, 1 ST FLOOR, APOLLO MILLS COMPOUND, N.M.JOSHI MARG, MAHALAXMI, MUMBAI-400011 / VS. JOINT COMMISSIONER OF INCOME TAX, 11(2), AYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ./ ./PAN/GIR NO. : AAAFK1415H ( / APPELLANT) .. ( / RESPONDENT) / APPELLANT BY : SHRI PRASHAND MAHESHWARI AND MS.SHEETAL JAIN. /RESPONDENT BY : SHRI SURENDRA KUMAR ' / DATE OF HEARING : 26.9.2013 ' /DATE OF PRONOUNCEMENT : 26.9.2013 / O R D E R PER B.R.MITTAL, JM: THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT Y EAR 2003-04 AGAINST ORDER DATED 31.1.2012 OF LD CIT(A)-3, MUMBAI IN CONFIRM ING THE LEVY OF PENALTY UNDER SECTION 271(1)(C ) OF THE INCOME TAX ACT, 1961(THE ACT) ON ACCOUNT OF (A) DISALLOWANCE MADE U/S 40(A)(I) OF THE ACT FOR PROFESSIONAL FEES OF RS.9,03,240/- PAID TO KPMG AUDIT PLC., UK AND (B) DISALLOWANCE U/S 40(A)(I) OF THE ACT FOR REIMBURSEMENT OF EXPENSES OF RS.95,217/- TO KPMG LLP, UK. 2. AT THE TIME OF HEARING, LD. AR SUBMITTED THAT TH E ITAT IN THE QUANTUM APPEAL FILED BY THE DEPARTMENT BEING ITA NO.3303/MUM/200 8 VIDE ITS ORDER DATED 25.1.2012 ITA NO.2400/MUM/2012 2 READ WITH RECTIFICATION ORDER DATED 12.6.2013 IN MI SCELLANEOUS APPLICATION NO.8/MUM/2013 RESTORED THE MATTER OF ABOVE DISALL OWANCES TO LD. CIT(A) FOR DE-NOVO ADJUDICATION IN THE LINE OF THE DECISION RENDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2000-01 AND 2002-03. HE S UBMITTED THAT IN VIEW OF ABOVE, PENALTY ORDER DOES NOT SURVIVE. 3. LD. DR HAS NOT DISPUTED THE ABOVE CONTENTION OF LD. AR. 4. CONSIDERING THE ABOVE SUBMISSIONS OF LD. REPRESE NTATIVES OF THE PARTIES AND THE ORDER OF TRIBUNAL DATED 25.1.2012 READ WITH ORDER DATED 12.6.2013 (SUPRA), SINCE THE ADDITION IN THE QUANTUM APPEAL HAVE BEEN RESTORED T O THE LD. CIT(A) FOR HIS DE-NOVO ADJUDICATION CONSIDERING THE TRIBUNAL DECISION IN A SSESSEES OWN CASE FOR ASSESSMENT YEARS 2000-01 AND 2002-03, WE AGREE THAT THE IMPUGN ED PENALTY ORDER AS CONFIRMED BY LD. CIT(A) DOES NOT SURVIVE. IN VIEW OF ABOVE, WE VACATE THE ORDER OF LD. CIT(A) IN CONFIRMING THE LEVY OF PENALTY IMPOSED BY AO U/S 27 1(1)( C) OF THE ACT. HOWEVER, LD. CIT(A) AFTER DECIDING THE ISSUE IN THE QUANTUM APP EAL WILL BE AT LIBERTY TO CONSIDER THE LEVY OF PENALTY BY FRESH ORDER AFTER GIVING DUE O PPORTUNITY OF HEARING TO THE PARTIES AS PER LAW. HENCE, GROUNDS OF APPEAL TAKEN BY THE ASS ESSEE ARE ALLOWED SUBJECT TO ABOVE OBSERVATIONS. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED SUBJECT TO ABOVE OBSERVATIONS. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES OF BOTH THE PARTIES AND AFTER CONCLUSION OF HEARING O N 26TH SEPTEMBER, 2013 ( * + 26TH SEPTEMBER, 2013 SD SD ( /SANJAY ARORA) ( . . 1 /B.R.MITTAL) / ACCOUNTANT MEMBER ( / JUDICIAL MEMBER MUMBAI; . . ./ SRL , SR. PS ITA NO.2400/MUM/2012 3 * +, -, / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 2 ( ) / THE CIT(A)- 4. 2 / CIT 5. 3 5 , ' 5 , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , / ITAT, MUMBAI