DCIT 7(2), MUMBAI V. RAJESH ROADLINES P.LTD, MUMBAI

ITA 3389/MUM/2013

• Counselvise Citation: 338919914 RSA 2013
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 02-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C TRIPURA SUNDARI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 3389/MUM/2013 ASSESSMENT YEAR: 2006-07 DCIT-7(2), ROOM NO. 624, M.K. ROAD MUMBAI- 400 020 VS. M/S. RAJESH ROADLINES PVT. LTD. 399, NARSHI NATHA STREET, MUMBAI- 400 009 (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAACR 2504 F ASSESSEE BY : NONE REVENUE BY : MS. C. TRIPURA SUNDARI DATE OF HEARING : 07.08.2014 DATE OF PRONOUNCEMENT : 27.08.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-13, MUMBAI DATED 13.02.2013 DELETING THE PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2007-08. 2. THE RELEVANT FACTS ARE THAT IN THE ASSESSMENT FR AMED, THE AO MADE AN ADDITION OF AN AMOUNT OF RS.51,80,062/- U/S 41(1) O F THE ACT ON ACCOUNT OF CESSATION OF LIABILITY. CONSEQUENTLY, THE AO INITIATED PENALT Y PROCEEDINGS U/S 271(1)(C) ON ACCOUNT OF THE SAID ADDITION OF RS.51,80,062/-. IN THE QUANTUM APPEAL, THE CIT(A), VIDE ORDER DATED 11.12.2012, SET ASIDE THE ISSUE TO THE FILE OF THE AO AND DIRECTED THE AO TO VERIFY THE ASSERTION OF THE ASSESSEE THAT THE LIABILITIES HAVE NOT CEASED DURING THE ACCOUNTING YEAR RELEVANT TO A.Y. 2006-07 FROM THE ORIGINAL ASSESSMENT TO RECORDS. THE LD.CIT(A) HAD FURTHER DIRECTED THAT IN CASE THE LIABILITIES HAVE NOT CEASED, THE AO HAS TO REDUCE THE DISALLOWANCE OF RS .51,80,062/- TO NIL. ON APPEAL AGAINST THE PENALTY ORDER, THE LD.CIT(A) DELETED TH E PENALTY ON THE REASON THAT IN THE QUANTUM APPEAL, THE CIT(A) HAD IN PRINCIPLE DEL ETED THE ADDITIONS MADE BY THE AO U/S 41(1) OF THE ACT AND ONLY FOR THE SAKE OF CO NVENIENCE AND VERIFICATION, THE ITA NO. 3389/MUM/2013 M/S. RAJESH ROADLINES PVT. LTD. ASSESSMENT YEAR: 2006-07 2 CIT(A) HAD DIRECTED THE AO TO MAKE VERIFICATION. AG GRIEVED BY THE IMPUGNED DECISION, THE REVENUE IS IN APPEAL BEFORE US. 3. NO ONE APPEARED ON BEHALF OF THE ASSESSEE DURIN G THE HEARING OF THE CASE AND WE THEREFORE, PROCEED TO DECIDE THE APPEAL OF T HE REVENUE EX-PARTE AFTER CONSIDERING THE SUBMISSIONS OF THE LD.DR AND PERUSI NG THE ORDERS OF THE LOWER AUTHORITIES. IT IS PERTINENT TO MENTION THAT THE CI T(A), IN THE QUANTUM APPEAL, AGAINST THE ADDITION OF AN AMOUNT OF RS.51,80,062/- MADE BY THE AO U/S 41(1) OF THE ACT ON ACCOUNT OF CESSATION OF LIABILITY, BY SE TTING ASIDE THE MATTER, HAD DIRECTED THE AO TO VERIFY THE ASSERTION OF THE ASSESSEE WHET HER THE LIABILITIES HAVE CEASED OR NOT DURING THE ACCOUNTING YEAR RELEVANT TO A.Y. 200 6-07 FROM THE ORIGINAL ASSESSMENT TO RECORDS. THIS, IN OUR VIEW, CANNOT BE CONSTRUED AS THE CIT(A) HAS IN PRINCIPLE DELETED THE ADDITIONS MADE BY THE AO AS HELD BY THE LD.CIT(A) IN THE PENALTY APPEAL. THEREFORE, THE SAME CANNOT BE THE B ASIS FOR OUTRIGHT DELETION OF THE PENALTY. WHEN THE ADDITION HAS BEEN RESTORED TO THE FILE OF AO, THE PENALTY ON THIS ASPECT SHOULD ALSO BE RESTORED TO THE FILE OF AO FO R TAKING A FRESH DECISION IN ACCORDANCE WITH THE VIEW FINALLY TAKEN BY HIM IN RE SPECT OF ADDITION IN QUANTUM PROCEEDINGS. WE, THEREFORE, OVERTURN THE IMPUGNED O RDER ON THIS ISSUE AND RESTORE THE MATTER TO THE FILE OF AO FOR TAKING A FRESH DEC ISION AFTER DECIDING THE MATTER IN QUANTUM PROCEEDINGS. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF AUGUST, 2014. SD/- SD/- (RAJENDRA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 27.08.2014. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR D BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.