SHREENATH MOTORS P.LTD, MUMBAI V. ASST CIT 5(3), MUMBAI

ITA 3688/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2247 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 15-06-2015
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: S C TIWARI MS RUTUJA PAWAR
• Keywords: Opportunity of being heard

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI R.C . SHARMA, A M AND SHRI SANDEEP GOSAIN, JM ./ I.T.A. NO. 3688 /MUM/2015 ( / ASSESSMENT YEAR: 2007 - 08 ) M/S. SHREENATH MOTORS PVT. LTD. C - WING, UNIT NO.101, 1 ST FLOOR, WATERFORD BUILDING, C.D. BURFIWALA ROAD (JUHU GALLI), ANDHERI (WEST), M UMBAI - 400 058 . / VS. THE ASST.. COMMISSIONER OF INCOME TAX - 5(3), MUMBAI . ./ ./ PAN/GIR NO. AAFCS 0033D ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI S.C. TIWARI MS. RUTUJA PAWAR / RESPONDENT BY : SHRI NEIL PHILIP / DATE OF HEARING : 20 /07 /2016 / DATE OF PRONOUNCEMENT : 27/07/2016 / O R D E R PER R.C. SHARMA , A. M.: THIS IS AN A PPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 10 , MU MB AI (CIT(A) FOR SHORT) DATED 03.03 . 2015 FOR THE ASSESSMENT YEAR (A.Y.) 2007 - 08 , IN THE MATTER OF IMPOSITION OF PENALTY U/S 271(1)(C ) OF THE I.T. ACT,1961. 2. AT THE OUTSET LD. AR PLACED ON RECORD ORDER OF THE TRIBUNAL WHEREIN QUANTUM ADDITION MADE ON ACCOUNT OF REMUNERATION TO THE DIRECTOR WAS RESTORED BACK TO THE 2 ITA NO. 3688 / M UM/2015 (A.Y. 2007 - 08 ) M/S. SHREENATH MOTORS PVT. LTD. VS. ACIT FILE OF AO VIDE ORDER DATED 10.09.2015 IN ITA NO.2087/M UM/2011. WE HAD CAREFULLY GONE THROUGH ORDER OF THE TRIBUNAL WHEREIN ADDITION MADE ON ACCOUNT OF REMUNERATION TO DIRECTOR WAS RESTORED BACK TO THE FILE OF AO AFTER HAVING FOLLOWING OBSERVATION: WE HAVE CONSIDERED THIS SUBMISSION OF THE ASSESSEE IN THE LIG HT OF THE DOCUMENTARY EVIDENCE BROUGHT ON RECORD. WE FIND FO R CE IN THE CONTENTION OF THE LD. COUNSEL. IN THE EARLIER YEARS, THE REMUNERATION WAS DISALLOWED FOR THE REASON THAT SHRI KRISHNA N. KACHALIA WAS PURSING THE COURSE OF MBA. HOWEVER, THIS FACT IS NO T PRESENT IN THE IMPUGNED ASSESSMENT YEAR. SINCE THERE IS A MATERIAL DIFFERENCE IN THE FACTS OF THE CA SE WHICH HAS BEEN IGNORED BY THE REVENUE AUTHORITIES, IN THE INTEREST OF JUSTICE, WE RESTORE THIS ISSUE TO THE FILE OF THE AO. THE AO IS DIRECTED TO DECID E THE ISSUE AFRESH IN THE LIGHT OF THIS MATERIALLY DIFFERENT FACT AFTER GIVING A REASONABLE AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE . 3. AS T HE QUANTUM ITSELF HAS BEEN SET ASIDE, WE SET ASIDE THE PENALTY ORDER ALSO TO THE FILE OF AO FOR DECIDING AFRESH AFTER PERSISTING THE ORDER IN QUANTUM AS PER THE DIRECTION OF TRIBUNAL. 8. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOU NCED IN THE OPEN COURT ON 27 JULY , 201 6 SD/ - SD/ - ( SANDEEP GOSAIN ) ( R.C. SHARMA) / JUD I C I AL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 27 . 0 7 .201 6 PS. ASHWINI 3 ITA NO. 3688 / M UM/2015 (A.Y. 2007 - 08 ) M/S. SHREENATH MOTORS PVT. LTD. VS. ACIT / 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 F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBA I.