LLOYD'S REGISTER U.K, MUMBAI V. ADDL DIT (IT) RG 4, MUMBAI

ITA 4605/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3479 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: L
• Next Hearing Date: 23-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 12-06-2013
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Assessee Lawyers: R P ACHARYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE S/SHRI B.R. BASKARAN (AM) & C.N. PRASAD (JM) I.T.A. NO. 4605 /MUM/ 2013 (ASSESSMENT YEAR 2005 - 06 ) LLOYDS REGISTER GROUP LIMITED (FORMERLY M/S. LLOYDS REGISTER UK) C/O. LLOYDS REGISTER ASIA IBO, 63 - 64 KALPATARU SQUARE, 6 TH FLOOR ANDHERI (EAST) MUMBAI - 40 0059. VS. ADDITIONAL DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) 133, SCINDIA HOUSE BALLARD ESTATE N.M. ROAD MUMBAI - 400 038 ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACL2209B ASSESSEE BY SHRI R.P. ACHARYA DEPARTMENT BY SHRI PANKAJ KUMAR DATE OF HEARING 25.5 . 201 6 DATE OF PRONOUNCEMENT 25 . 5 . 201 6 O R D E R PER B.R. BASKARAN, A M : - THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 5.3.3013 PASSED BY LEARNED CIT( A) - 11, MUMBAI PARTIALLY CONFIRMING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S. 271(1)(C) OF THE I.T. ACT. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION BY MAKING FOLLOWING ADDITIONS: - A) MANAGERIAL FEES ASSESSED AS FEES FOR TECHNICAL SERVICES ` 4.65 CRORES B) DISALLOWANCE OF CLAIM OF SET OFF OF BUSINESS LOSS ` 38.57 LAKHS 3. IN THE APPEAL FILED BY THE ASSESSEE BEFORE LEARNED CIT(A) AGAINST THE ABOVE SAID ADDITIONS, THE FIRST APPELLATE AUTHORITY GRANTED RELIEF IN RESPECT OF LLOYDS REGISTER GROUP LIMITED 2 MANAGERIAL FEES BY 50% AND CONFIRMED THE DISALLOWANCE OF CLAIM OF SET OFF OF BUSINESS LOSS. 4. AFTER THE RECEIPT OF ORDER OF LD CIT(A) IN QUANTUM APPEAL, T HE ASSESSING OFFICER LEVIED PENALTY ON T HE ADDITIONS CONFIRMED BY LEARNED CIT(A). THE ASSESSEE CHALLENGED THE PENALTY ORDER BY FILING THE APPEAL BEFORE LEARNED CIT(A). THE FIRST APPELLATE AUTHORITY DELETED THE PENALTY LEVIED ON ADDITION RELATING TO MANAGERIAL CHARGES AND CONFIRMED THE PENALTY LE VIED ON DISALLOWANCE OF CLAIM OF SET OFF OF BUSINESS LOSS. STILL AGGRIEVED , THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 5. AT THE TIME OF HEARING, LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED THAT THE TRIBUNAL HAS ALLOWED CLAIM OF SET OFF OF BUS INESS LOSS IN ITS ORDER DATED 18.3.2006 PASSED IN ITA NO. 3138/MUM/2011. ACCORDINGLY HE SUBMITTED THAT THE PENALTY CONFIRMED BY LEARNED CIT(A) ON DISALLOWANCE OF CLAIM OF SET OFF OF BUSINESS LOSS REQUIRES TO BE DELETED. 6. WE HEARD LD D.R AND PERUSED THE RECORD. WE NOTICE THAT THE LEARNED CIT(A) HAS DELETED PENALTY LEVIED ON THE ADDITION RELATING TO THE MANAGERIAL FEES AND HE HAS CONFIRMED THE PENALTY LEVIED ON CLAIM OF SET OFF OF BUSINESS LOSS. NOW, IT IS SHOWN TO US THAT THE TRIBUNAL , IN THE APPEAL REL ATING TO QUANTUM ASSESSMENT PROCEEDINGS , HAS ALLOWED THE ASSESSEE TO CLAIM OF SET OFF OF LOSS. HENCE THE PENALTY CONFIRM ED BY LD CIT(A) ON SAID DISALLOWANCE NEEDS TO BE DELETED AS IT NO LONGER SURVIVE S . ACCORDINGLY WE SET ASIDE THE ORDER OF LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED ON DISALLOWANCE OF CLAIM OF SET OFF OF BUSINESS LOSS. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER HAS BEEN PRONOU NCED IN THE OPEN COURT ON 25 .5 .20 16 . SD/ - SD/ - (C.N. PRASAD ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 25 / 5 /20 1 6 LLOYDS REGISTER GROUP LIMITED 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS