STANDARD INDUSTRIES LTD, MUMBAI V. ` DCIT CIR 3(3), MUMBAI

ITA 4093/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0596 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 01-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 01-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SAHUDR
• Assessee Lawyers: J P DESAI
• Section: 143(3); 115JB

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -GBENCH MUMBAI , , , BEFORE S/SHRI RAJENDRA,ACCOUNTANT MEMBER AND RAM LAL NEGI,JUDICIAL MEMBER ./I.T.A./4093/MUM/2015, /ASSESSMENT YEAR: 2008-09 M/S. STANDARD INDUSTRIES LIMITED 59, THE ARCADE 1 ST FLOOR, WORLD TRADE CENTRE, CUFFE PARADE, COLABA,MUMBAI-400 005. PAN:AABCS 8888 C VS. DY. CIT, CIRCLE -3 (3) AAYAKAR BHAVAN, M.K. ROAD MUMBAI-400 020. ( /APPELLANT ) ( / RESPONDENT ) REVENUE BY: SHRI R.K. SAHU-DR ASSESSEE BY: SHRI J.P. DESAI / DATE OF HEARING: 01.06.2017 / DATE OF PRONOUNCEMENT: 01.06.2017 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) / PER RAJENDRA, AM - CHALLENGING THE ORDER DT.29.3.2014 THE ASSESSEE HA S FILED THE PRESENT APPEAL. ASSESSEE COMPANY ,ENGAGED IN THE BUSINESS OF MANUFACTURING A ND SALE OF TEXTILE GODS, READYMADE GARMENTS, CHEMICALS ,FILED ITS RETURN OF INCOME ON 29/9/2008, DECLARING NIL INCOME UNDER THE NORMAL PROVISIONS.THE AO COMPLETED THE ASSESSMENT U /S. 143(3) ON 14/05/2010 DETERMINING ITS INCOME AT RS.NIL UNDER THE NORMAL PROVISIONS AN D BOOK PROFIT (-) RS.63.74 CRORES U/S. 115JB OF THE ACT. 2. EFFECTIVE GROUND OF APPEAL IS ABOUT LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT TOWARDS ADJUSTMENT OF WRITTEN DOWN VALUE OF MOTOR VEHICLES, AGGREGATING TO RS.1.44 CRORES, AGAINST THE PROFIT ON SALE OF PLANT AND MACHINERY WHILE COM PUTING SHORT TERM CAPITAL GAIN (STCG) ON SALE OF DEPRECIABLE ASSETS U/S.50(1) OF THE ACT. WHILE COMPLETING THE ASSESSMENT, THE AO OBSERVED THAT STCG ON SALE OF DEPRECIABLE ASSET WAS NOT SHOWN CORRECTLY . HE COMPUTED THE STCG AT RS.14.93 CRORES AGAINST RS.13.48 CRORES OFF ERED FOR TAX IN THE RETURN OF INCOME.VIDE HIS ORDER DT.28.3.2013, THE AO LEVIED PENALTY OF RS .44.71 CRORES U/S.271(1)(C )OF THE ACT AFTER ISSUING A NOTICE TO THE ASSESSEE ALLEGING THAT IT HAD FILED INACCURATE PARTICULARS OF INCOME. 3. DURING THE APPELLATE PROCEEDINGS,THE FIRST APPELLAT E AUTHORITY (FAA) UPHELD THE PENALTY ORDER OF THE AO. DURING THE COURSE OF HEARING BEFOR E US THE AUTHORISED REPRESENTATIVE (AR) STATED THAT THE TRIBUNAL HAD DELETED THE ADDITION I N THE QUANTUM APPEAL VIDE ITS ORDER DT.28/ 4/2017 (ITA/3623/MUM/2012). WE FIND THAT THE TRIBUN AL WHILE ALLOWING THE QUANTUM APPEAL HELD THAT THE ISSUE RAISED BY THE ASSESSEE WAS COVE RED BY THE JUDGMENT OF HON'BLE DELHI HIGH 4093/M/15(08-09) STANDARD INDUSTRIES 2 COURT IN THE CASE OF ANSAL PROPERTIES & INFRASTRUCT URE LTD.(20TAXMANN.COM770). AS THE QUANTUM ADDITION HAS BEEN DELETED BY THE TRIBUNAL, SO, THE PENALTY ORDER WOULD NOT SURVIVE. EFFECTIVE GROUND OF APPEAL IS DECIDED IN FAVOUR OF THE ASSESSEE. AS A RESULT APPEAL FILED BY THE ASSESSEE STANDS AL LOWED. . ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST , JUNE, 2017. , 2017 SD/- SD/- ( / RAM LAL NEGI ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 01.06 .2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR G BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.