M/S. UREKA CHEMICALS PVT. LTD, MUMBAI V. THE DCIT CIR 8(3), MUMBAI

ITA 2454/MUM/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2360 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 15-02-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 29-03-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Assessee Lawyers: SUDIR PAREKH
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F: MUMBAI BEFORE SHRI R.S. SYAL (AM) AND SHRI VIJAY PAL RAO (JM) ITA NO. 2454/MUM/2007 (ASSTT. YEAR : 2001-02) UREKA CHEMICALS PRIVATE LIMITED APPELLANT NO. S-4, GROUND FLOOR, COMMERCE CENTRE, 78 TARDEO ROAD, MUMBAI 400034 PAN :AAACU0688D V/S. DEPUTY COMMISSIONER OF INCOME-TAX RESPONDENT CIRCLE 8(3) AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400020 APPELLANT BY : SHRI SUDIR PAREKH RESPONDENT BY : SHRI O.P. SHARMA : O R D E R : PER R.S. SYAL, A.M THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE O RDER PASSED BY THE CIT(A) ON 30.11.2006 PARTLY CONFIRMING THE PENALTY IMPOSED BY THE A.O U/S. 271(1)(C) IN RELATION TO THE A.Y. 2001-02. 2. AT THE VERY OUTSET, THE LD COUNSEL FOR THE ASSES SEE CONTENDED THAT THE PENALTY WAS IMPOSED BY THE A.O ON THE ADDITIONS MAD E BY HIM TOWARDS INTEREST ADVANCES, DEBIT BALANCES WRITTEN OFF AND F OREIGN TRAVEL EXPENSES. HE STATED THAT THE LD CIT(A) REDUCED THE ADDITION ON A CCOUNT OF INTEREST ON ADVANCES FROM RS. 4,79,024/- TO RS. 3,59,268/- AND UPHELD THE REMAINING TWO ADDITIONS. HOWEVER, WHEN THE MATTER CAME UP BE FORE THE TRIBUNAL, ALL THE SAID THREE ADDITIONS WERE DELETED IN ENTIRETY. HE PLACED ON RECORD A COPY OF THE ORDER PASSED BY THE TRIBUNAL IN ITA NO. 5671/M/ 2004 PASSED IN THE QUANTUM PROCEEDINGS. ITA NO. 2454/MUM/07 2 3. THE LD DEPARTMENTAL REPRESENTATIVE, AFTER GOING THROUGH THE SAID ORDER OF THE TRIBUNAL, FAIRLY ADMITTED THAT THE ADDITION S IN RESPECT OF WHICH, THE PENALTY HAS BEEN IMPOSED, STAND FINALLY DELETED BY THE TRIBUNAL. 4. AFTER CONSIDERING THE RIVAL BUT COMMON SUBMISSIO NS AND PERUSING THE RELEVANT RECORD, IT IS SEEN THAT THE VERY FOUNDATIO N IN RESPECT OF WHICH, THE EDIFICE OF PENALTY PROCEEDINGS HAS BEEN ERECTED, C EASES TO EXIST IN VIEW OF THE ORDER PASSED BY THE TRIBUNAL IN QUANTUM PROCEEDINGS , DELETING OF THE DISALLOWANCES ON WHICH THE PENALTY WAS IMPOSED. WE , THEREFORE, VACATE THE IMPUGNED ORDER AND ORDER FOR THE DELETION OF PENALT Y. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12TH DAY OF APRIL , 2010. SD/- SD/- (VIJAY PAL RAO) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, ON THIS 12TH DAY OF APRIL, 2010. :US COPY TO: 1. APPELLANT 2. RESPONDENT , 3.THE CIT(A)- XXIX, MUMBAI 4.THE CIT VIII, MUMBAI 5.THE DR, F BENCH, MUMBAI 6.GUARD FILE BY ORDER TRUE COPY ASSTT..REGISTRAR, ITAT, MUMBAI. ITA NO. 2454/MUM/07 3 US DATE INITIALS 1. DRAFT DICTATED ON 09/4/10 --------------- SR.P.S . 2. DRAFT PLACED BEFORE AUTHORITY 12/4/10 -------- ------ SR.P.S. 3. DRAFT PROPOSED & PLACED ----------- ---------- --- JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED ----------- ----------- -- JM/AM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO ----------- ------------ - SR.P.S. THE SR. P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON --------- ----------- -- SR.P.S. 7. FILE SENT TO THE BENCH CLERK --------- --------- ---- SR.P.S. 8. DATE ON WHICH FILE GOES TO THE ------- --------- ---- 9. DATE OF DISPATCH OF ORDER --------- --------- ----