THE ITO RG 3(1)(1), MUMBAI V. M/S. ABN AMRO SECURITIES (I) P. LTD, MUMBAI

ITA 403/MUM/2009

• Counselvise Citation: 40319914 RSA 2009
• Duration Of Justice: 2 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 19-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL BADALA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, MUMBAI. BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SMT ASHA VIJAYRAGHAVAN, JUDICIAL MEMBER I.T.A NO.403/ MUM/2009 ASSESSMENT YEAR: 2003-04 INCOME TAX OFFICER WARD 3(1)(1), MUMBAI 400 020 APPELLANT VS ABN AMRO SECURITIES INDIA PVT LTD ... RESPO NDENT 81, SAKHAR BHAWAN 8THFLOOR NARIMAN POINT, MUMBAI 400 021 PAN : AABCA3423F VS. APPEARANCES: USHA S. NAIR, ,FOR THE APPELLANT SUNIL BADALA,FOR THE RESPONDENT DATE OF HEARING : SEPTEMBER 06, 2011 DATE OF PRONOUNCEMENT: SEPTEMBER 06,2011 O R D E R PER PRAMOD KUMAR: 1. THIS APPEAL IS FILED BY THE ASSESSING OFFICER AG AINST THE ORDER DATED 24.10.2008 OF THE CIT(A), IN THE MATTER OF PENALTY OF RS.3,71,39,200 UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 RELATING TO T HE ASSESSMENT YEAR 2003-04. 2 2. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE PRODUCED A COPY OF ITAT ORDER DATED 26 TH AUGUST, 2011 FOR THE ASSESSMENT YEARS 2003-04 IN QUANTUM APPEAL IN THE CASE OF THE ASSESSEE, WHEREIN, THE AD DITION OF MADE IN RESPECT OF BROKEN PERIOD INTEREST AND LOSS ON INTEREST RATE S WAP VALUATION, HAS BEEN DELETED. HE SUBMITTED THAT AS THE VERY BASIS OF ADDITION RE GARDING LEVY OF PENALTY HAS BEEN DELETED BY THE TRIBUNAL, THE PENALTY HAS TO BE CANC ELLED. LEARNED D.R. COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS OF LEARNED COU NSEL FOR THE ASSESSEE. 3. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PE RUSED THE ORDER DATED 26 TH AUGUST, 2011 OF THE TRIBUNAL IN QUANTUM APPEAL OF THE ASSESSEE (SUPRA), WE FIND THE ADDITION IN QUANTUM APPEAL WHICH WAS THE VERY BASIS OF LEVYING THE PENALTY, HAS BEEN DELETED BY THE TRIBUNAL. THEREFORE, THE PENAL TY ORDER OF ASSESSING OFFICER CEASES TO BE DEVOID OF LEGALLY SUSTAINABLE BASIS AN D THE CIT(A) HAS RIGHTLY CANCELLED THE PENALTY ORDER. IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) TO INTERFERE AND UPHOLD THE SAME. . 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARI NG ON 6 TH SEPTEMBER, 2011 SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER MUMBAI, DATED 6 TH SEPTEMBER, 2011 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),XXVII, MUM BAI 4. COMMISSIONER OF INCOME TAX, CITY-III , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH A MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI