DCIT CIR 7(2)(1), MUMBAI V. METRO EXPORTS P.LTD, MUMBAI

ITA 3542/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2448 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 09-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K KARDA M
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER& SHRI AMARJIT SINGH, JUDICIAL MEMBER. ITA NO. 3542 /MUM/2015 (ASSESSMENT YEAR : 2006-07) THE DCIT, CIR.7(2)(1), ROOM NO.623, 6 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI - 400020 ... APPELLA NT VS. M/S. METRO EXPORTS PVT. LTD. SHAH HOUSE, 5 TH FLOOR, SHIVSAGAR ESTATE, DR. A.B ROAD, WORLI, MUMBAI 400018 PAN:AABCM 0349J .... RESPONDENT APPELLANT BY : SHRI A.K.KARDAM RESPONDENT BY : SHRI PIYUSH CHHAJED DATE OF HEARING : 19/07/2016 DATE OF PRONOUNCEMENT : 22/07/2016 ORDER PER G.S.PANNU, A.M: THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAININ G TO ASSESSMENT YEAR 2006-07 IS DIRECTED AGAINST AN ORD ER PASSED BY CIT(A)- 13, MUMBAI DATED 19/03/2015 WHICH IN TURN ARISES OU T OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1 )(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 28/03/201 4. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOL LOWING GROUND OF APPEAL:- 2 ITA NO. 3542 /MUM/2015 (ASSESSMENT YEAR : 2006-07) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE PENALTY UNDER SECT ION 271(1)(C) OF THE ACT OF RS.31,30,313/- MERELY ON THE GROUND THAT THE QUANTUM ADDITION WAS DELETED BY THE ITAT, INSTEAD OF DECIDI NG THE APPEAL ON MERITS, BECAUSE THE PENALTY PROCEEDINGS ARE SEPARAT E FROM THE ASSESSMENT PROCEEDINGS. 3. IN THIS CASE, THE RESPONDENT ASSESSEE IS A COMPA NY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, AN D IS, INTER-ALIA, ENGAGED IN THE BUSINESS OF MANUFACTURING AND EXPORT OF GARMENTS AND BICYCLE AND OTHER ITEMS. IN THE ASSESSMENT FINALIZ ED UNDER SECTION 143(3) OF THE ACT DATED 15/12/2008, ONE OF THE ADDI TIONS MADE TO THE RETURNED INCOME WAS ON ACCOUNT OF DISALLOWANCE OF L ONG TERM CAPITAL LOSS ON SALE OF PREFERENCE SHARES OF M/S. PAKS VETE RINARY DRUGS MFG. CO. PVT. LTD. SUBSEQUENTLY, THE ASSESSING OFFICE R LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT WITH RESPECT TO THE TA X SOUGHT TO BE EVADED ON THE ABOVE STATED INCOME. BY WAY OF THE IMPUGNED ORDER, THE CIT(A) HAS DELETED THE LEVY OF PENALTY ON THE GROUND THAT IN THE QUANTUM ASSESSMENT PROCEEDINGS, THE IMPUGNED DISALLOWANCE M ADE BY THE ASSESSING OFFICER HAS SINCE BEEN SET-ASIDE BY THE T RIBUNAL VIDE ITS ORDER IN ITA NO. 8528/MUM/2010 DATED 3/02/2015. AGAINST SUCH A DECISION, REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US, IT WAS A COMMON POINT BETWEEN THE PAR TIES THAT THE ORDER OF THE TRIBUNAL DATED 03/02/2015(SUPRA) CONTI NUES TO HOLD THE FIELD AND, THEREFORE, NO ERROR CAN BE FOUND IN THE ORDER OF THE CIT(A) DELETING THE PENALTY IMPOSED UNDER SECTION 271(1)(C ) OF THE ACT AS THE ADDITION MADE BY THE ASSESSING OFFICER ITSELF DOES NOT SURVIVE THUS, ON 3 ITA NO. 3542 /MUM/2015 (ASSESSMENT YEAR : 2006-07) THIS ASPECT, THE ORDER OF THE CIT(A) IS AFFIRMED A ND REVENUE FAIL IN ITS APPEAL. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 22/07/2016 SD/- SD/- (AMARJIT SINGH) (G.S. PANNU) JUDICIAL MEMBER ACCOU NTANT MEMBER MUMBAI, DATED 22/07/2016 VM , SR. PS 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) ITAT, MUMBAI