DCIT 15(3)(1), MUMBAI V. WARTSILA INDIA LTD, MUMBAI

ITA 2528/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8388 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2017
• Appeal Filed By: Department
• Bench Allotted: I
• Assessment Year: 2007-2008
• Appeal Filed On: 01-05-2015
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Assessee Lawyers: SHREYAM B SHAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SANDEEP GOSAIN (JM) I.T.A. NO. 2528 /MUM/20 15 (ASSESSMENT YEAR 20 07 - 08 ) DCIT 15(3)(1) ROOM NO. 451 4 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. WAR TSILA INDIA LTD. KESAR SOLITAIRE 21 ST FLOOR, SECTOR 19 PALM BEACH ROAD SANPADA NAVI MUMBAI - 400705. ( APPELLANT ) ( RESPONDENT ) C.O. NO. 193/MUM/2016 (ASSESSMENT YEAR 2007 - 08) M/S. WARTSILA INDIA LTD. KESAR SOLITAIRE 21 ST FLOOR, SECTOR 19 PALM BEACH ROAD SANPADA NAVI MUMBAI - 400705. VS. DCIT 15(3)(1) ROOM NO. 451 4 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACW0345D ASSESSEE BY SHRI SHREYAM B. SHAH DEPARTMENT BY S HRI SAURABH KUMAR DATE OF HEARING 13 .2 . 201 7 DATE OF PRONOUNCEMENT 13 .2 . 201 7 O R D E R PER SANDEEP GOSAIN (J M) : - THE APPEAL FILED BY THE REVENUE AND THE C ROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 19.1.2015 PASSED BY THE LEARNED CIT(A) - 8, MUMBAI - 8, MU MBAI AND THEY RELATE TO A.Y. 2007 - 08. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN CANCELLING THE PENALTY OF ` 45 LAKHS LEVIED BY THE ASSESSING OFFICER U/S. 271(1)(C) OF THE ACT. THE ASSESSEE HAS FILED THE CROSS OBJECTION SUPPORTING T HE ORDER PASSED BY THE LEARNED CIT(A). M/S. WARTSILA INDIA LIMITED 2 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSING OFFICER LEVIED THE PENALTY U/S. 271(1)(C) OF THE ACT ON THE FOLLOWING DISALLOWANCES MADE BY HIM : - A) PROVISION FOR TRADING GUARANTEE ` 1,03,34,220/ - B) P ROFESSIONAL FEES ` 30,36,122/ - THE LEARNED CIT(A) CONFIRMED THE ADDITION IN THE APPEAL FILED BY THE ASSESSEE AND HENCE THE ASSESSING OFFICER LEVIED PENALTY OF ` 45,00,457/ - U/S. 271(1)(C) OF THE ACT. THE ASSESSEE FILED THE APPEAL BEFORE THE LEARN ED CIT(A) CHALLENG ING THE PENALTY LEVIED U/S. 271(1)(C) OF THE ACT AND THE SAME WAS ALLOWED BY THE LEARNED CIT(A). AGGRIEVED, THE REVENUE HAS FILED THIS APPEAL BEFORE US. 3. AT THE TIME OF HEARING, LEARNED COUNSEL APPEARING FOR TH E ASSESSEE SUBMITTED THA T IT HAD ALSO CHALLENGED THE ORDER PASSED BY THE LEARNED CIT(A) IN QUANTUM PROCEEDINGS CONFIRMING THE ABOVE SAID TWO ADDITIONS , BY FILING THE APPEAL BEFORE THE ITAT. THE TRIBUNAL, VIDE ITS ORDER DATED 5.6.2015 PASSED IN ITA NO. 2695/MUM/2012 HAS REVERSED T HE ORDER PASSED BY THE LEARNED CIT(A) AND DIRECTED THE ASSESSING OFFICER TO DELETE THE ABOVE SAID TWO DISALLOWANCES. ACCORDINGLY, THE ASSESSEE SUBMITTED THAT THE ADDITIONS , ON WHICH THE IMPUGNED PENALTY WAS LEVIED , NO LONGER EXIST AND HENCE, THE IMPUGNE D P ENALTY IS LIABLE TO BE DELETED . 4. LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT CONTRADICT THE FACTUAL ASPECT PRESENTED BY THE ASSESSEE. 5. SINCE THE ADDITIONS , ON WHICH THE PENALTY WAS LEVIED, HAVE BEEN DELETED BY THE TRIBUNAL BY THE ORDER REFERRED SUPRA , WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE THAT THE IMPUGNED PENALTY IS LIABLE TO BE DELETED . ACCORDINGLY, WE UPHOLD THE DECISION OF THE LEARNED CIT(A) IN CANCELLING THE IMPUGNED PENALTY FOR THE REASONS CITED ABOVE . 6. SINCE WE HAVE DISM ISSED THE APPEAL OF THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE DOES NOT REQUIRE CONSIDERATION. M/S. WARTSILA INDIA LIMITED 3 7 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 13 . 2 .201 7. SD/ - SD/ - (B.R.BASKARAN) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED : 13 / 2 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI