DCIT 8(1), MUMBAI V. CRISIL LTD, MUMBAI

ITA 4421/MUM/2010

• Counselvise Citation: 442119914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 13-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 31-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Question of law; Wrong claim

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AN D SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 4420 AND 4421/MUM./2010 (A.YS : 2001-02 AND 2004-05 ) ASSTT. COMMISSIONER OF INCOME TAX-8(1) ROOM NO.260A, 2 ND FLOOR AAYAKAR BHAVAN, 101, M.K. ROAD MUMBAI 400 020 .. APPELLANT V/S M/S. CRISIL LIMITED 121/122, ANDHERI KURLA ROAD ANDHERI (E), MUMBAI 400 093 PAN AAACT3151E .... RESPONDENT REVENUE BY : MR. SUNIL KUMAR SINGH ASSESSEE BY : MR. DHANESH BAFNA DATE OF HEARING 13.09.2011 DATE OF ORDER 23.09.2011 O R D E R PER J. SUDHAKAR REDDY, A.M. THESE APPEALS PREFERRED BY THE ASSESSEE, ARE DIREC TED AGAINST COMMON IMPUGNED ORDER DATED 4 TH MARCH 2010, PASSED BY THE COMMISSIONER (APPEALS)-XVI, MUMBAI, FOR ASSESSMENT YEARS 2001-02 AND 2004-05, WHEREIN THE PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) IMPOSED BY THE ASSESSING OFFICER WAS CANCELLED. M/S. CRISIL LIMITED ITA NO.4420/M/2010 ITA NO.4421/M/2010 2 2. AFTER HEARING THE RIVAL CONTENTIONS, WE FIND THAT, MUMBAI K BENCH OF THE TRIBUNAL, IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2001-02, IN ITA NO.573/MUM./2008, ORDER DATED 30 TH APRIL 2010, QUASHED THE RE-ASSESSMENT PROCEEDINGS. AS THE QUANTUM APPEAL HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE ON THE GROUND OF JURISDICTION, THE PENALTY LEVIED UNDER SECTION 271(1)(C) HAS NOT LEGS TO STAND. THUS, WE UPHOLD TH E ORDER OF THE COMMISSIONER (APPEALS) FOR ASSESSMENT YEAR 2001-02 AND DISMISS THE APPEAL OF THE REVENUE. 3. IN THE RESULT, REVENUES APPEAL FOR ASSESSMENT YEAR 2001-02 IS DISMISSED. 4. NOW, COMING TO REVENUES APPEAL FOR ASSESSMENT YEAR 2004-05, THE COMMISSIONER (APPEALS) HAS COMMITTED AN ERROR BY OB SERVING THAT IN THE QUANTUM PROCEEDINGS, THE ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE. IT IS NOT SO. THE ISSUE PERTAINS TO ALLOWABILITY OF DEPRECIATION OF GOODWILL. THE TRIBUNAL DECIDED THE ISSUE AGAINST THE ASSESSEE. NE VERTHELESS, UNDER THE IDENTICAL CIRCUMSTANCES, IN ASSESSEES OWN CASE, FO R ASSESSMENT YEAR 2002- 03, MUMBAI K BENCH OF THE TRIBUNAL IN ITA NO.941/ MUM./2008, ORDER DATED 14 TH JULY 2009, THE TRIBUNAL, VIDE PARA-13, OBSERVED AS FOLLOWS:- 13. WE HAVE GIVEN OUR CAREFUL CONSIDERATION TO THE RIVA L CONTENTIONS. THOUGH THE TRIBUNAL HAS NOT ALLOWED THE CLAIM OF TH E ASSESSEE ON ACCOUNT OF DEPRECIATION ON GOODWILL, THE HONBLE BO MBAY HIGH COURT HAS CONSIDERED THE ISSUE INVOLVING A SUBSTANTIAL QU ESTION OF LAW AND ACCORDINGLY THE APPEAL AGAINST THE ORDER OF THE TRI BUNAL HAS BEEN ADMITTED. ONCE THE HIGH COURT HAS HELD THAT SUBSTAN TIAL QUESTION OF LAW AROSE AGAINST THE ORDER OF THE TRIBUNAL IN REGA RD TO THE ALLOWANCE OF DEPRECIATION ON GOODWILL, IT CANNOT BE SAID THAT THE ASSESSEE HAD MADE A FALSE CLAIM IN THE RETURN OF INCOME IN REGAR D TO THE SAME WE, TAKING THE TOTALITY OF THE FACTS AND THE CIRCUMSTAN CES OF THE CASE INTO CONSIDERATION, ARE OF THE VIEW THAT THE CIT(A) WAS JUSTIFIED IN DELETING THE PENALTY EVEN IN RESPECT OF THE DEPRECIATION CLA IMED ON GOODWILL. IN OUR VIEW, THE ENTIRE PENALTY AHS RIGHTLY BEEN DELET ED BY THE CIT(A). FINDING NO MERIT IN THE APPEAL OF THE REVENUE, WE D ISMISS THE SAME . M/S. CRISIL LIMITED ITA NO.4420/M/2010 ITA NO.4421/M/2010 3 5. IN VIEW OF THE AFORESAID FINDINGS OF THE TRIBUNAL I N ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2002-03, WE UPHOLD THE ORDER OF THE COMMISSIONER (APPEALS) AND DELETE THE PENALTY LEVIED UNDER SECTI ON 271(1)(C). 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. 7. TO SUM UP, BOTH THE APPEALS BY REVENUE ARE DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER 2011 SD/- VIJAY PAL RAO JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 23.9.2011 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, I BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI