DCIT, CHENNAI V. Simpson & General Finance Co. Ltd., CHENNAI

ITA 415/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9537 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 25-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . , . , ' # [ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ] ./ I.T.A.NO.415/MDS/2016 / ASSESSMENT YEAR : 2009-10 THE DY. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 6(2) CHENNAI VS. M/S SIMPSON & GENERAL FINANCE CO. LTD 861/862, ANNA SALAI CHENNAI 600 002 [PAN AABCS 1868 A ( & / APPELLANT) ( '(& /RESPONDENT) / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /RESPONDENT BY : SHRI R.VIJAYARAGHAVAN, ADVOCATE / DATE OF HEARING : 28 - 04 - 2016 / DATE OF PRONOUNCEMENT : 02 - 0 5 - 2016 / O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15, CHENN AI, DATED 8.12.2015, IN I.T.A.NO.69/CIT(A)-15/14-15, DELETING PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT FO R THE ASSESSMENT YEAR 2009-10. ITA NO.415/16 :- 2 -: 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A LIMITED COMPANY ENGAGED IN THE BUSINESS OF HIRE PURCHASE, B ILL DISCOUNTING, LEASING, MUTUAL FUNDS AND INSURANCE AGENCY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTIC ED THAT THE ASSESSEE HAS OFFERED ONLY THE INTEREST PORTION OF T HE LEASED INSTALLMENTS AS ITS INCOME WHEREAS THE ASSESSEE SHO ULD HAVE DISCLOSED THE ENTIRE LEASE RENT WHICH INCLUDED THE PRINCIPAL PORTION AS IS TAXABLE INCOME. THE ASSESSEE HAD REPLIED THAT IT HAD NOT RO UTED THE PRINCIPLE AMOUNT THROUGH THE PROFIT AND LOSS ACCOUNT AND HENC E NOT OFFERED FOR TAXATION. HOWEVER, THE LEARNED ASSESSING OFFICER MA DE ADDITIONS TOWARDS THE SAME AND INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT. THEREAFTER THE LEARNED ASSESSING OFFICER LEVIED A MINIMUM PENALTY OF ` 11,89.631/- U/S 271(1)(C) OF THE ACT. ON APPEAL , THE LEARNED CIT(A) DELETED THE PENALTY BY FOLLOWING THE TRIBUNALS ORDER IN ASSESSEES OWN CASE IN I.T.A.NOS.2655 TO 2661/MDS/2 014 FOR ASSESSMENT YEARS 2002-03 TO 2008-09 DATED 18.3.2015 , AGAINST WHICH THE REVENUE IS IN APPEAL BEFORE US. 3. AT THE TIME OF HEARING, BOTH THE PARTIES AGREED THA T THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY TH E ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR S 2002-03 TO 2008-09. SINCE THE FACTS ARE IDENTICAL, WE DO NOT FIND ANY REASON TO ITA NO.415/16 :- 3 -: INTERFERE WITH THE ORDER OF THE LEARNED CIT(A). AC CORDINGLY, THE ORDER OF THE LEARNED CIT(A) IS CONFIRMED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 2 ND MAY, 2016, AT CHENNAI. SD/ - SD/ - ( . ) (G. PAVAN KUMAR) $ & / JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) & / ACCOUNTANT MEMBER $ / CHENNAI , / DATED: 2 ND MAY, 2016 RD ./ 0/ / COPY TO: 1 . / APPELLANT 4. 1 / CIT 2. / RESPONDENT 5. / 4 / DR 3. 1 () / CIT(A) 6. / GF