Assistant Commissioner of Income Tax (IT), Circle-1, Pune V. Faurecia Systems D'echappement, Pune

ITA 307/PUN/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8312 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 13-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “C”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.307/PUN/2021 नधा रण वष / Assessment Year : 2014-15 ACIT, Circle-1, Pune (Appellant) Vs. M/s. Faurecia Systems D’echappement, Plot No.T-187, Pimpri industrial Area (B. G. Block), Behind Bhosari Police Station, Bhosari, Pune 411 026 Maharashtra PAN : AABCF7193F आदेश / ORDER PER R.S.SYAL, VP : This appeal by the Revenue is directed against the order passed by the CIT(A) -13, Pune on 12-04-2021 in relation to the A.Y. 2014-15 2. The only issue raised in this appeal is against the deletion of penalty of Rs.98,59,279/- imposed by the Assessing Officer (AO) u/s.271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) Assessee by Shri Siddhesh Chaugule Revenue by Shri Piyush Kumar Singh Yadav Date of hearing 11-07-2022 Date of pronouncement 12-07-2022 ITA No.307/PUN/2021 M/s. Faurecia Systems D’echappement 2 3. Succinctly, the facts of the case are that the assessee is a tax resident of France. Return was filed declaring total income at Rs.4.94 crore. During the course of assessment proceedings, the AO observed that a sum of Rs.19.98 crore was not offered for taxation. Treating such amount as Royalty, the AO included the same in the total income in the draft order. The Dispute Resolution Panel (DRP) held that the amount of Rs.9.85 crore in relation to the Software Maintenance charges was taxable as royalty. The remaining amount was held to be not chargeable. The AO included such amount in the final assessment order as royalty. Thereafter, the AO imposed penalty u/s.271(1)(c) of the Act with reference to this addition which came to be deleted in the first appeal. 4. We have heard both the rival submissions and gone through the relevant material on record. It is seen as an admitted position that the AO imposed penalty on identical ground for the A.Y. 2013-14, which got deleted in the first appeal. The Revenue preferred appeals for both the years, which were clubbed and taken up for hearing in a combined manner. The rival parties made elaborate submissions in the appeal for the A.Y. 2013-14 and adopted such arguments for the instant appeal. We have passed a ITA No.307/PUN/2021 M/s. Faurecia Systems D’echappement 3 separate order for the A.Y. 2013-14 upholding the deletion of the penalty. Following the same reasons, we uphold the impugned order insofar as its conclusion for the deletion of penalty is concerned. 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 12 th July, 2022. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 12 th July, 2022 सतीश आदेश क त ल प अ े षत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A)-13 Pune 4. 5. 6. The Pr.CIT-V, Pune िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “सी” / DR ‘C’, ITAT, Pune; गाड फाईल / Guard file. आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.307/PUN/2021 M/s. Faurecia Systems D’echappement 4 Date 1. Draft dictated on 11-07-2022 Sr.PS 2. Draft placed before author 12-07-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *