REYNOLD TRADERS P. LTD, MUMBAI V. ITO 7(2)(1), MUMBAI

ITA 4115/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0989 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 03-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Assessee Lawyers: ARVIND SONDE
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D : MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND R.K.PAN DA, A.M. ITA. NO. 4115/MUM/2009 ASSESSMENT YEAR 2004-2005 M/S. REYNOLD TRADERS PVT. LTD. MUMBAI 013 PAN AAACR-5787-N VS. ITO 7 (2) (1) MUMBAI. (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI ARVIND SONDE FOR RESPONDENT : SHRI JITENDRA YADAV (DR) ORDER PER D. MANMOHAN, V.P. 1. PENALTY LEVIED BY THE ASSESSING OFFICER UNDER S ECTION 271 (1) (C) OF THE ACT, CONFIRMED BY THE CIT(A) IS SUBJECT MATTER OF DISPUTE BEFORE THE TRIBUNAL. 2. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE VERY BASIS FOR LEVY OF PENALTY I S THE DISALLOWANCE MADE UNDER SECTION 36 (1) (III) OF THE ACT WHICH WAS SET ASIDE BY THE ITAT D BENCH, MUMBAI (ITA. NOS. 2869 & 2870/MUM/2007 DATED 11 TH AUGUST, 2009) WITH A DIRECTION TO THE ASSESSING OFFICER TO EXAMINE THE EXTENT OF DISALLOWANCE IN THE LIGHT OF AMENDED PROVISIONS OF SECTION 14A READ WITH RULE 8D OF THE I.T. RULES, 1962. SINCE THE BASIS FO R LEVYING OF PENALTY WAS SET ASIDE, LEARNED COUNSEL SUBMITTED THAT THE PENAL TY PROCEEDINGS ALSO CAN BE SET ASIDE TO THE FILE OF THE ASSESSING OFFIC ER FOR RE-CONSIDERING THE MATTER AFRESH. 3. LEARNED DR HAS NO OBJECTION IN THIS REGARD. 2 4. CONSIDERING THE CIRCUMSTANCES OF THE CASE, WE H EREBY SET ASIDE THE ORDER OF THE ASSESSING OFFICER AND DIRECT THE ASSESSING OFFICER TO RECONSIDER THE ISSUE ON LEVY OF PENALTY AFTER PA SSING A CONSEQUENTIAL ORDER GIVING EFFECT TO THE ORDER OF THE ITAT, D B ENCH, MUMBAI IN THE QUANTUM APPEAL (SUPRA). 5. IN THE RESULT, AS PRONOUNCED IN THE OPEN COURT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STA TISTICAL PURPOSES. SD/- SD/- (R.K. PANDA) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 28 TH JULY, 2010. VBP/- COPY TO 1. M/S. REYNOLD TRADERS PVT. LTD., VICTORIA HOUSE, PANDURANG BUDHKAR MARG, LOWER PAREL, MUMBAI 013 PAN AAACR-5787-N 2. INCOME TAX OFFICER 7 (2) (1), AAYAKAR BHAVAN, MU MBAI. 3. CIT (A)-VII, MUMBAI. 4. CIT-VII, MUMBAI. 5. D.R. D BENCH 6. GUARD FILE. (TRUE COPY) BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.