SM ENERGY TEKNIK & ELECTRONICS LTD, MUMBAI V. DCIT RG 8(3), MUMBAI

ITA 3221/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2779 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 28-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 26-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SARAVANAN
• Assessee Lawyers: S A KANJI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI E BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER. ITA. NO. 3221/MUM/2013 (ASSESSMENT YEAR:2003-04) SM ENERGY TEKNIK & ELECTRONICS LIMITED, SM HOUSE, 11, SAHAKAR ROAD, VILE PARLE (E), MUMBAI 400057 APPELLANT VS. DY. COMMISSIONER OF INCOME TAX, RANGE 8(3), MUMBAI 400 020 RESPONDENT PAN: AAACS7372L /BY APPELLANT : SHRI S. A. KANJI, A.R. /BY RESPONDENT : SHRI J. SARAVANAN, D.R. /DATE OF HEARING : 28.06.2016 /DATE OF PRONOUNCEMENT : 30.06.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-18, MUMBAI, DATED 04.01.2013 FOR A.Y. 2003-04 ON FOLLOWING GROUNDS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASES AND IN LAW. ITA NO.3221/MUM/13 A.Y. 03-04 [SM ENERGY TEKNIK & ELECTRONICS LTD. VS. DCIT] PAGE 2 THE LEARNED CIT(A) ERRED IN CONFIRMING THE PENALTY LEVIED BY THE LEARNED A.O. OF RS.2,16,005/- REPRESENTING 1 00% OF THE TAX ATTRIBUTABLE TO DISALLOWANCE OF RS.5,87,565 /- TOWARDS THE FOREIGN TRAVEL EXPENSES WITHOUT APPRECI ATING THE FACT BROUGHT ON RECORD BY THE APPELLANT BOTH DU RING APPELLATE AND ASSESSMENT PROCEEDINGS. THE APPELLANT PRAYS THAT THE SAME MAY BE DELETED. 2. IN THIS CASE, PENALTY HAS BEEN LEVIED ON THE BAS IS OF DISALLOWANCE MADE ON ACCOUNT OF FOREIGN TRAVEL EXPE NSES. LD. AUTHORIZED REPRESENTATIVE BEFORE US QUANTIFIED THAT QUANTUM ADDITION HAS BEEN DELETED BY ITAT MUMBAI E BENCH IN ITA NO.1859/MUM/2008 VIDE PARA NO.2.3 BY OBSERVING AS UNDER: 2.3 WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL BEFORE US. WE FIND THAT THE ASSESSEE HAD FURNISHED THE DETAILS ABOUT THE ENCASHMENT/SURRENDE R OF FOREIGN EXCHANGE BEFORE BOTH THE LOWER AUTHORITIES. PAGE NO.64 ONWARDS EVIDENCE THE ENCASHMENT/SURRENDER OF FOREIGN EXCHANGE. THE AO OR THE FAA HAD NOT DOUBTE D THE FOREIGN TOURS UNDERTAKEN BY THE EMPLOYEES OF THE ASSESSEE-COMPANY. AFTER CONSIDERING THE MATERIAL O N RECORD, SPECIALLY PAGE NO.65 TO 96 AND THE JUDGMENT OF KRISHNORES LTD., WE ARE OF THE OPINION THAT THE ADD ITION UPHELD BY THE FAA WAS NOT BASED ON FACTS AVAILABLE ON THE RECORD. THE ASSESSEE HAD FILED ALL THE DETAILS BEF ORE THE AO. THEREFORE, REVERSING THE ORDER OF THE FAA, WE DECIDE GROUND NO.1 IN FAVOUR OF THE ASSESSEE. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE ON BE HALF OF REVENUE. SO, WE FIND THAT QUANTUM ADDITION IS MADE ON ACCOUNT OF DISALLOWANCE OF FOREIGN TRAVEL EXPENSES, WHICH IS THE BASIS OF PENALTY, DOES NOT SURVIVE. IN VIEW OF THE ITA NO.3221/MUM/13 A.Y. 03-04 [SM ENERGY TEKNIK & ELECTRONICS LTD. VS. DCIT] PAGE 3 TRIBUNALS DECISION IN QUANTUM, PENALTY U/S.271(1)( C) OF THE ACT DOES NOT SURVIVE. SAME IS DIRECTED TO BE DELET ED. 3. AS A RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS THE 30 TH DAY OF JUNE, 2016. SD/- SD/- ( RAJESH KUMAR ) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R MUMBAI: DATED 30/06/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. %&%'( ) / CONCERNED CIT 4. )- / CIT (A) 5.-./00'(, '( , %& / DR, ITAT, MUMBAI 6./4567 / GUARD FILE. BY ORDER / , / % , '( , %&