ACIT, CHENNAI V. Shriram City Union Finance Ltd., CHENNAI

ITA 2485/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86238 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 01-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R SIVARAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI .. , ! , ' #$ BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ ITA NO. 2485/MDS/2014 ' % &% / ASSESSMENT YEAR : 2008-09 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(2), CHENNAI - 600 034. V. M/S SHRIRAM CITY UNION FINANCE LTD., MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI - 600 004. PAN : AAACS 7703 H (!(/ APPELLANT) (*+!(/ RESPONDENT) !( , - / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT *+!( , - / RESPONDENT BY : SHRI R. SIVARAMAN, ADVOCATE . , / / DATE OF HEARING : 19.01.2015 01& , / / DATE OF PRONOUNCEMENT : 19.01.2015 / O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 30.07.2014 PASSED BY LD CIT(APPEALS)-VI, CHEN NAI AND IT RELATES TO THE ASSESSMENT YEAR 2008-09. THE REVENU E IS AGGRIEVED 2 I.T.A. NO. 2485/MDS/2014 BY THE DECISION OF LD CIT(APPEALS) IN DELETING THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE HAD TRANSFERRED A SUM OF `32.55 CRORES TO STATUTOR Y RESERVE ACCOUNT IN TERMS OF RBI ACT AND CLAIMED THE SAME A S DEDUCTION. THE ASSESSING OFFICER DISALLOWED THE SAID CLAIM AND LEVIED PENALTY U/S 271(1)(C) OF THE ACT ON THE SAID DISALLOWANCE. IT IS PERTINENT TO NOTE THAT THE TRIBUNAL HAD ALSO CONFIRMED THE SAID DISALLOWANCE. 3. HOWEVER, THE LD CIT(APPEALS) DELETED THE PENA LTY BY FOLLOWING THE DECISION RENDERED BY THE CO-ORDINATE BENCH OF T RIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 1887 & 1852/MDS/2011 DATED 24.01.2012 RELATING TO THE ASSESSMENT YEAR 2005-06 AND 2006-07. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT( APPEALS). 4. IN AY 2005-06 AND 2006-07, WE NOTICE THAT TH E CO-ORDINATE BENCH OF TRIBUNAL HAD DELETED THE PENALTY LEVIED ON IDENTICAL REASONS BY FOLLOWING THE DECISION RENDERED BY THE T RIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.1000/MDS/2010 RELATIN G TO THE AY 2003-04. WE FURTHER NOTICE THAT THE TRIBUNAL HAS E XPRESSED THE VIEW THAT THE ASSESSEE HAS NOT CONCEALED ANY PARTIC ULARS OF INCOME 3 I.T.A. NO. 2485/MDS/2014 OR FURNISHED ANY INACCURATE PARTICULARS OF INCOME B Y CLAIMING THE DEDUCTION OF AMOUNT TRANSFERRED TO STATUTORY RESERV ES. THE TRIBUNAL HAS FURTHER NOTICED THAT THE ASSESSEE HAD CLAIMED T HE SAME ON THE BASIS OF A LEGAL OPINION AND ALSO ON BONAFIDE AND H ONEST BELIEF. UNDER THESE SET OF FACTS, THE TRIBUNAL HAS DELETED THE PENALTY LEVIED IN AY 2005-06 AND 2006-07 FOR IDENTICAL DISALLOWANC E, BY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE O F RELIANCE PETRO PRODUCTS LTD (322 ITR 158)(SC) AND ALSO THE D ECISION RENDERED BY HONBLE JURISDICTIONAL MADRAS HIGH COUR T IN THE CASE OF CAPLIN POINT LABORATORIES (172 TAXMAN 279), WHEREIN IT WAS HELD THAT THE PENALTY WAS NOT LEVIABLE ON THE DISALLOWAN CES MADE ON LEGAL GROUNDS. AS ALREADY STATED, THE LD CIT(APPEA LS) HAS FOLLOWED THE DECISION OF THE HONBLE SUPREME COURT RENDERED IN THE CASE OF RELIANCE PETRO PRODUCTS LTD (SUPRA) AND ALSO THE DE CISIONS GIVEN BY THE CO-ORDINATE BENCHES OF TRIBUNAL IN THE ASSESSEE S OWN CASE. FURTHER, WE NOTICE THAT IT WAS NOT THE CASE OF THE REVENUE THAT THE ASSESSEE HAS CONTINUED TO CLAIM THE DEDUCTION AFTER THE DECISION OF TRIBUNAL ON THIS ISSUE, WHEREIN THE TRIBUNAL HAS CO NFIRMED THE DISALLOWANCE. UNDER THESE SET OF FACTS, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF LD CIT(APPEALS) ON T HIS ISSUE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE I S DISMISSED. 4 I.T.A. NO. 2485/MDS/2014 ORDER PRONOUNCED ON THE 19 TH DAY OF JANUARY, 2015 AT CHENNAI. SD/- SD/- ( ! ) ( .. ) (VIKAS AWASTHY) (B.R. BASKARAN) ' /JUDICIAL MEMBER /ACCOUNTANT MEMBER /CHENNAI, A /DATED, THE 19 TH JANUARY, 2015. KRI. B , *'/C D &/ /COPY TO: 1. !( /APPELLANT 2. *+!( /RESPONDENT 3. . E/ () /CIT(A)-VI, CHENNAI-34 4. . E/ /CIT-VI, CHENNAI 5. FG *'/' /DR 6. GH% I /GF.