Appeal details
Counselvise Citation
[2017] 128 COUNSELVISE.COM (IT) 0011 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 11 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-06-2017
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
C
Next Hearing Date
08-06-2017
Assessment Year
2005-2006
Appeal Filed On
19-08-2015
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C , MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD , JUDICIAL MEMBER ITA NO. 4701 /MUM/ 2015 : A.Y : 2005 - 06 DCIT (IT) - 2(1)(1), MUMBAI (APPELLANT) VS. CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (FORMERLY CALYON BANK) 11 TH , 12 TH AND 14 TH FLOORS, HOECHST HOUSE, NARIMAN POINT, MUMBAI 400 051 (RESPONDENT) PAN : AACCC3872B APPELLANT BY : SHRI A.B. KOLI RESPONDENT BY : SHRI MADHUR AGARWAL DATE OF HEARING : 08 / 06 /201 7 DATE OF PRONOUNCEMENT : 30 /0 6 /201 7 O R D E R PER G.S. PANNU , AM : THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - 55 , MUMBAI DATED 30.3.2015 , PERTAINING TO THE ASSESSMENT YEAR 2005 - 06 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER DATED 28.3.2014 UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. IN THIS APPEAL, THE GRIEVANCE OF THE REVENUE IS AGAINST THE ACTION OF CIT(A) IN DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER OF RS.72,78,136/ - U/S 271(1)(C) OF THE ACT. 2 CREDIT AGRICOLE CORPORATE & INVESTMENT BANK ITA NO. 4701/MUM/2015 3. IN BRIEF, THE RELEVANT FACTS ARE THAT THE RESPONDENT - ASSESSEE IS A NON - RESIDENT FOREIGN BANKING COMPANY INCORPORATED IN FRANCE. THE RETURN FILED BY THE ASSESSEE F OR THE ASSESSMENT YEAR 2005 - 06 WAS SUBJECT TO A SCRUTINY ASSESSMENT WHEREIN IT WAS, INTER - ALIA , NOTED THAT ASSESSEE HAD RECEIVED INTEREST FROM THE INCOME - TAX DEPARTMENT OF RS.7,27,81,362/ - IN TERMS OF SEC. 244A OF THE ACT, WHICH WAS NOT OFFERED FOR TAXATIO N. INSTEAD, THE ASSESSEE WAS FOUND TO HAVE NETTED IT AGAINST THE INTEREST PAID TO THE INCOME - TAX DEPARTMENT U/S 220(2) OF THE ACT. THE AFORESAID WAS NOT FOUND ACCEPTABLE BY THE ASSESSING OFFICER AND ACCORDINGLY, AN AMOUNT OF RS.7,27,81,362/ - WAS BROUGHT TO TAX. SUBSEQUENTLY, BY WAY OF THE IMPUGNED ORDER, THE ASSESSING OFFICER LEVIED PENALTY U/S 271(1)(C) OF THE ACT WITH RESPECT TO THE AFORESAID ADDITION. ACCORDINGLY, PENALTY OF RS.72,78,136/ - , BEING 100% OF THE TAX SOUGHT TO BE EVADED ON THE AFORESAID I NCOME, WAS LEVIED U/S 271(1)(C) OF THE ACT. 4. BEFORE THE CIT(A), ASSESSEE RAISED VARIOUS GROUNDS ON FACTS AND IN LAW ASSAILING THE LEVY OF PENALTY. THE CIT(A) HAS DELETED THE PENALTY BY NOTICING THAT THE MUMBAI BENCH OF THE TRIBUNAL IN ASSESSEES OWN CA SE IN ITA NO S . 724/MUM/2011 AND 4116/MUM/2014 DATED 10.12.2014 FOR ASSESSMENT YEAR 2004 - 05 HAD DELETED THE PENALTY WHICH WAS IMPOSED ON A SIMILAR SET OF FACTS. ACCORDINGLY, THE CIT(A) DIRECTED THE ASSESSING OFFICER TO DELETE THE PENALTY, AGAINST WHICH THE REVENUE IS IN APPEAL BEFORE US. 3 CREDIT AGRICOLE CORPORATE & INVESTMENT BANK ITA NO. 4701/MUM/2015 5. BEFORE US, IT WAS A COMMON POINT BETWEEN THE PARTIES THAT THE ORDER OF THE TRIBUNAL DATED 10.12.2014 (SUPRA) RELIED UPON BY THE CIT(A) CONTINUES TO HOLD THE FIELD AND IT HAS NOT BEEN ALTERED BY ANY HIGHER AUTHORITY. IN FACT, A PERUSAL OF THE ORDER OF THE TRIBUNAL DATED 10.12.2014 (SUPRA) REVEALS THAT IT IS A COMBINED ORDER , INCLUDING ITA NO. 724/MUM/2011 RELAT ING TO THE QUANTUM ASSESSMENT FOR THE ASSESSMENT YEAR 2004 - 05 , WHEREIN GROUND NO. 10 RELATED TO NETTING - OFF OF I NTEREST RECEIVED BY THE ASSESSEE FROM THE INCOME - TAX DEPARTMENT U/S 244A OF THE ACT AGAINST INTEREST PAID U/S 220(2) OF THE ACT. THE TRIBUNAL FOLLOWING THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF BANK OF AMERICA, ITA NO. 177/2012 DATED 3.7.2014 UPHELD THE STAND OF THE ASSESSEE. 6. IN VIEW OF THE AFORESAID FACT - SITUATION, WHICH IS SIMILAR TO WHAT HAS BEEN CONSIDERED BY THE CIT(A) IN THIS YEAR, WE FIND NO REASONS TO INTERFERE WITH THE ULTIMATE DECISION OF CIT(A) IN DELETING THE PENA LTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT. THE ORDER OF THE CIT(A) IS HEREBY AFFIRMED. ACCORDINGLY, REVENUE FAILS IN ITS APPEAL. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 0 T H JUNE , 2017. SD/ - SD/ - ( RAVISH SOOD ) JUDICIAL MEMBER ( G.S. PANNU ) ACCOUNTANT MEMBER MUMBAI, DATE : 3 0 T H JUNE , 201 7 * SSL * 4 CREDIT AGRICOLE CORPORATE & INVESTMENT BANK ITA NO. 4701/MUM/2015 COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, C BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI
