Deputy Commissioner of Income-tax, V. Atlas Copco (India) Ltd., Pune

ITA 427/PUN/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7841 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-07-2019
• Assessment Year: 2004-2005
• Appeal Filed On: 09-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KESANG Y SHERPA
• Assessee Lawyers: R MURLIDHAR; PRASHANT GANDHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO.427/ PUN/20 15 / ASSESSMENT YEAR : 2004 - 05 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 8, PUNE. ....... / APPELLANT / V/S. ATLAS COPCO(INDIA) LTD., MUMBAI - PUNE ROAD, DAPODI, PUNE - 411 012 PAN: AAACA4074D / RESPONDENT A SSESSEE BY : SHRI R. MURLIDHAR & SHRI PRASHANT GANDHI REVENUE BY : MS. KESANG Y SHERPA / DATE OF HEARING : 19 .0 7 .2019 / DATE OF PRONOUNCEMENT : 22 .0 7 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(APPEAL) - 1, NASHIK DATED 30.01.2015 FOR THE ASSESSMENT YEAR 2004 - 05 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 427 /PUN/20 15 A.Y. 2004 - 05 2. THE CRUX OF THE GRIEVANCE OF THE REVENUE IS WITH REGARD TO THE DELETION OF PENALTY LEVIED U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) BY THE LD. CIT(APPEAL). THE FIRST GROUND OF APPEAL ON PENALTY ISSUE IS WITH REGARD TO THE PART EXPENSES WHICH ARE NOT ELIGIBLE FOR DEDUCTION U/S.35DD OF THE ACT. 3. WE OBSERVE QUANTUM ON THIS ISSUE HAS BEEN DELETED BY THE TRIBUNAL IN ITA NO.1302/PUN/2010 & ITA NO.1303/PUN/2010 FOR ASSESSMENT YEAR 2004 - 0 5 FOLLOWING OUR ORDER IN ITA NO.1311/PUN/2011 AND ITA NO.1414/PUN/2011 FOR THE ASSESSMENT YEAR 2002 - 03 AND IN ITA NO.1676/PUN/2011 AND ITA NO.54/PUN/2012 FOR THE ASSESSMENT YEAR 2003 - 04. SINCE QUANTUM ITSELF HAS BEEN DELETED BY THE TRIBUNAL, THERE IS NO JUSTIFICATION FOR IMPOSING PENA LTY AS PER THE BINDING JUDGMENTS OF THE HONBLE HIGH COURTS WHICH ARE AS FOLLOWS : (I) CIT VS. C OSMOPOLITAN TRADING CORPORATION REPORTED AS 274 ITR 640 BY HON'BLE RAJASTHAN HIGH COURT . (II) CIT VS. PRAKASH INDUSTRIES LTD . R EPORTED AS 322 ITR 622 BY THE HONBLE PUNJAB & HARYANA HIGH COURT . THE LEGAL PROPOSITION FROM THESE JUDGMENT S IS T HAT WHEN THE ENTIRE ADDITION HAS BEEN DELETED IN THE QUANTUM APPEAL, NO REASON SURVIVES FOR SUSTAINING THE PENALTY. 3 ITA NO. 427 /PUN/20 15 A.Y. 2004 - 05 4. IN VIEW OF THE MATTER AND JUDICIAL PRONOUNCEMENTS AS REFERRED HEREIN ABOVE, GROUND NO.1 OF THE REVENUES APPEAL IS DISMISSED. 5. WITH REGARD TO THE GROUND NO.2 IN REVENUES APPEAL , WE HAVE PERUSED THE CASE RECORDS AND HAVE GIVEN CONSIDERABLE THOUGHT TO THE FINDINGS OF THE LD. CIT(APPEAL ). THAT O N EXAMINATION OF FACTS ON RECORDS, IT HAS BEEN CLEARLY STATED IN THE ORDER OF THE FIRST APPELLATE AUTHORITY THAT THERE IS NEITHER CONCEALMENT OF INCOME NOR FURNISHING OF INACCURATE PARTICULARS OF INCOME BY THE ASSESSEE. THE ASSESSEE HAS TAKEN A PARTICULAR VIEW POINT WHICH MAY NOT BE AS PER THE SATISFACTION OF THE REVENUE AUTHORITIES BUT THAT PE R - SE WILL NOT LEAD TO IMPOSITION OF PENALTY U/S.271(1)(C) OF THE ACT IF THE AFORESAID PARAMETERS ARE NOT FULFILLED. THIS VIEW IS FOR TIFIED BY THE DECISION OF THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. RELIANCE PETRO PRODUCTS (P) LTD. 322 ITR 158 (SC). IN ABSENCE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME , THERE IS NO JUSTIFICATION FOR IMPOSING PENALTY U/S.271(1)(C) OF THE ACT. THEREFORE, GROUND NO.2 OF THE REVENUES APPEAL IS ALSO DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRO NOUNCED ON 22 ND DAY OF JU LY , 201 9 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 22 ND JU LY , 2019 . SB 4 ITA NO. 427 /PUN/20 15 A.Y. 2004 - 05 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEAL) - 1, NASHIK. 4. THE CIT - V, PUNE. 5 . , , , / DR, ITAT, C BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 5 ITA NO. 427 /PUN/20 15 A.Y. 2004 - 05 DATE 1 DRAFT DICTATED ON 19 .0 7 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 22 .0 7 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER