DDIT (IT) 2(3)(2), MUMBAI V. GURGAON INVESTMENTS LTD, MUMBAI

ITA 2995/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4086 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T S KHALSA
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUM BAI BEFORE SHRI SHAMIM YAHYA, AM AND AMARJIT SINGH, JM ITA NO. 2995/MUM/2019 (ASSESSMENT YEAR: 2011-12) DCIT(IT)-2(3)(2) 1614, 16 TH FLOOR, AIR INDIA BUILDING NARIMAN POINT, MUMBAI-400 021 VS. GURGAON INVESTMENTS LTD. C/O M/S. G M KAPADIA & CO. 1001, RAHEJA CHAMBERS, 213, NARIMAN POINT MUMBAI-400 021 PAN/GIR NO. AABCI7404E ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI NITESH JOSHI RESPONDENT BY : SHRI T.S.KHALSA DATE OF HEARING : 24/02/2021 DATE OF PRONOUNCEMENT : 19 /05/2021 O R D E R PER SHAMIM YAHYA, A. M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-56, MUMBAI (LD .CIT(A) FOR SHORT) DATED 08.03.2019 AND PERTAINS TO THE ASSESSMENT YEAR (A.Y .) 2011-12. 2. THE GROUNDS OF APPEAL READ AS UNDER: 1. WHETHER ON THE FACTS AND ON CIRCUMSTANCES OF THE CASE AND IN LAW , THE LD. CIT(A) HAS ERRED IN CANCELLING THE PENALTY, LEVIED U/S 271 (1)(C) OF THE I.T. ACT BY OBSERVING THAT THERE IS NO CASE OF FURNISHING OF INACCURATE PARTIC ULARS OF INCOME, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE CLEARLY FURNISHED INACCURATE PARTICULARS OF INCOME BY NOT CHARGING INTEREST TO BE CHARGED ON THE FUNDS GIVEN AS CCDS T O ITS OVERSEAS ASSOCIATED ENTERPRISES EVEN WHEN AS PER PROVISIONS OF LAW IT WAS MANDATORY TO CHARGE IT.' 2. 'WHETHER ON THE FACTS AND ON CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN CANCELLING THE PENALTY, LEVIED U/S 271 (1)(C) OF THE I.T. ACT BY OBSERVING THAT THE ASSESSEE HAS FURNISHED THE RELEVANT DETAIL IN 3 CEB REPORT, WITHOUT APPRECIATING THE FACT THAT MERELY PROVIDING DETAIL OF THE TRANSACTIO NS MADE WITH THE ASSOCIATE ENTITY IN 3CEB REPORT IS NOT SUFFICE TO PROVE THAT IT HAD DIS CLOSED FULL AND CORRECT PARTICULARS OF ITS INCOME.' 2 2995/MUM/2019 3. AT THE OUTSET IN THIS CASE, LD. COUNSEL OF THE A SSESSEE SUBMITTED THAT THE QUANTUM APPEAL IN THIS CASE IN ITA NO. 7359/MUM/2016 VIDE OR DER DATED 15/11/2019, THE ITAT HAS DELETED THE ADDITION. HENCE, BE PLEADED THA T IN THIS VIEW OF THIS MATTER, THE PENALTY APPEAL BEFORE THE ITAT WITH REFERENCE TO ABO VE ADDITION DOES NOT SURVIVE. THE LD. DR COULD NOT CONTROVERT THAT ITAT HAS DELETED TH E ADDITION. 4. UPON HEARING BOTH THE PARTIES AND PERUSED THE RECORDS, WE UPHOLD THE ORDER OF THE LD. CIT(A) DELETING THIS PENALTY IN AS MUCH AS ITAT H AS DELETED THE ADDITION WITH REFERENCE TO WHICH THIS PENALTY HAS BEEN LEVIED. 5. IN THE RESULT, THE REVENUES APPEAL IS DISM ISSED. ORDER PRONOUNCED IN THE O PEN COURT ON 19.5.2021. SD/- SD/- (AMARJIT SINGH) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 19.05.2021 THIRUMALESH , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD FILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI