DCIT, New Delhi V. M/s. Oracle India (P) Ltd, New Delhi

ITA 4344/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 9779 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 13-01-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 13-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ISTIYAQUE AHMED
• Section: 271(1)(c)

Judgement Text

ITA NO. 4344/DEL/09 A.Y. 2002-03 1 IN THE INCOMETAX APPELATE TRIBUNAL DELHI BENCH F: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 4344/DEL/2009 A.Y. : 2002-03 DY. COMMISSIONER OF INCOME TAX, VS. M/S ORACLE IN DIA PRIVATE LIMITED, CIRCLE-13(1), ROOM NO. 406, 3 RD FLOOR, A WING, IFCI TOWER, CR BUILDING, IP ESTATE, NEW DELHI 61, NEHRU PLACE , NEW DELHI [PAN: AAACO0158L] (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI TARANDEEP SINGH, ADV. DEPARTMENT BY : SHRI ISTIYAQUE AHMED, SR. DR O R D E R PER SHAMIM YAHYA : AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDERS OF THE LD. CIT(A) DATED 1.9.2009 PERTAINING TO ASSESSMENT YEAR 2002-0 3. 2. THE ISSUES RAISED READS AS UNDER:- I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL AS IN LAW, THE LD. CIT(A) ERRED IN DELETING THE PENAL TY OF RS. 12,37,00,000/- LEVIED U/S 271(1)(C) OF THE IT ACT. II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS W ELL AS IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY RE LYING UPON THE DECISION OF ITAT IN ASSESSMENT YEARS 1999-2000 TO 2001-02 IN THE QUANTUM APPEAL SINCE APPEAL HAS BEEN FILED AGAINST THE ITAT ORDER BEFORE THE HONBLE HIGH COUR T. 3. IN THIS CASE THE PENALTY WAS LEVIED BY THE AO ON THE ADDITION OF RS. 34,63,07,373/- PERTAINING TO DISALLOWANCE OF RO YALTY AMOUNT PAID TO M/S ORACLE CORPORATION USA. ITA NO. 4344/DEL/09 A.Y. 2002-03 2 4. LD. COUNSEL OF THE ASSESSEE PRODUCED BEFORE US T HE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ABOVE SAID ADDITION IN QUANTUM APPEAL IN ITA NO. 1982/D/06 AND ITA NO. 1755/D/06 FOR ASSE SSMENT YEAR 2002-03. IN THE SAID DECISION VIDE ORDER DATED 20.3.2009, TH E ADDITION HAS BEEN DELETED BY THE TRIBUNAL. SINCE THE ADDITION HAS BEEN DELE TED BY THE TRIBUNAL, LD. COUNSEL OF THE ASSESSEE CONTENDED THAT IN SUCH CIRC UMSTANCES THE PENALTY LEVIED WILL ALSO NOT SURVIVE ON THE ADDITION. 4.1 LD. DR FAIRLY AGREED TO THIS PROPOSITION. 4.2 ACCORDINGLY, SINCE THE TRIBUNAL HAS DELETED THE ADDITION, THE PENALTY ON THE SAID ADDITION UNDER SECTION 271(1)(C), IS LIAB LE TO BE DELETED. ACCORDINGLY, WE AFFIRM THE ORDER OF THE LD. CIT(A) DELETING THE LEVY OF PENALTY UNDER SECTION 271(1)(C). 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 13/01/2010. SD/- SD/- [C.L. SETHI) [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 13 /01/ 2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES