MGF Development Ltd., New Delhi V. ACIT, New Delhi

ITA 2492/DEL/2012

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4155 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 23-11-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 23-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR BALWAN CHAUHAN
• Assessee Lawyers: VARSHA BHATTACHARYA
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.2492/DEL/2014 ASSESSMENT YEAR : 2003-04 JOHNSON MATTHEY INDIA PVT. LTD., C/O LUTHRA & LUTHRA LAW OFFICES, 103, BARAKHAMBA ROAD, NEW DELHI. PAN: AAACJ2919A VS. DCIT, CIRCLE-4(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS VARSHA BHATTACHARYA, CA DEPARTMENT BY : DR. BALWAN CHAUHAN, CIT, DR DATE OF HEARING : 26.10.2016 DATE OF PRONOUNCEMENT : 27.10.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE CIT(A) ON 18.2.2014 IN RELATION TO THE ASSESSMENT Y EAR 2003-04. ITA NO.2492 /DEL/2014 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE AO MADE AN ADDITION AMOUNTING TO RS.8,33,86,859/- ON ACCOUNT O F TRANSFER PRICING. THE LD. CIT(A) RESTRICTED SUCH ADDITION IN QUANTUM APPEAL TO RS.7,03,05,000/-. IT IS ON THE SUSTENANCE OF ADDIT ION TO THIS EXTENT THAT THE AO IMPOSED PENALTY U/S 271(1)(C) OF THE ACT AMO UNTING TO RS.2,58,40,000/- 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS NOTICED THAT THE ASSESSEE CHALLENGED THE ADDITION IN QUANTUM BEFORE THE HONBLE DELHI HIGH COURT. VI DE ITS JUDGMENT DATED 30.10.2015, THE HONBLE DELHI HIGH COURT HAS DELETED THE TRANSFER PRICING ADDITION AMOUNTING TO RS.8.33 CRORE. IN VI EW OF THE FACT THAT THE VERY FOUNDATION FOR THE IMPOSITION AND CONFIRMATION OF PENALTY, BEING THE ADDITION MADE IN QUANTUM PROCEEDINGS, DOES NOT STAND, THERE CAN BE NO QUESTION OF IMPOSING OR CONFIRMING ANY PENALTY T HEREON. WE, THEREFORE, ORDER FOR THE DELETION OF PENALTY. ITA NO.2492 /DEL/2014 3 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 27.10.201 6. SD/- SD/- [SUCHITRA KAMBLE] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 27 TH OCTOBER, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.