APNA ELECTRONICS P.LTD, MUMBAI V. DCIT 9(1), MUMBAI

ITA 4938/MUM/2011

• Counselvise Citation: 493819914 RSA 2011
• Duration Of Justice: 2 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-10-2013
• Assessment Year: 2001-2002
• Appeal Filed On: 22-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAVED AKTHAR
• Assessee Lawyers: REEPAL TRALSHAWALA
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI B.R. MITTAL, JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.4938/M/11 ASSESSMENT YEAR:2001-02 M/S. APNA ELECTRONICS P. LTD. C/O R. VIJAYKRISHNAN, B/109, AMI PARK, SAI NAGAR, VASAI ROAD (W) 401 202 PAN: AAACA3368 L VS. DY. COMMISSIONER OF INCOME TAX 9(1), MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI REEPAL TRALSHAWALA REVENUE BY : SHRI JAVED AKTHAR DATE OF HEARING : 31.10.13 DATE OF PRONOUNCEMENT : 06.11.13 O R D E R PER B.R.MITTAL, JM: THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2001-02 AGAINST ORDER OF LD. CIT(A) DATED 22.03.11 DISPUTING THE CO NFIRMATION OF LEVY OF PENALTY OF RS.67,03,725/- UNDER SECTION 271(1)(C) O F THE ACT. 2. THE ASSESSING OFFICER MADE AN ADDITION OF RS.1,5 0,00,000/- IN RESPECT OF THE STOCK CONSIDERING THAT THE ASSESSEE HAS SOLD THE SAME BUT DECLARED ITS VALUE AT NIL ON THE GROUND THAT THE SAID STOCK HAD BECOME RUSTED AND SCRAP. THE ASSESSING OFFICER ALSO MADE THE ADDITION OF RS.19,5 0,000/- ON ACCOUNT OF THE INCOME FROM HOUSE PROPERTY, AFTER ALLOWING STATUTOR Y REDUCTION @ 25% OF THE RENT BY REJECTING THE CONTENTION OF THE ASSESSEE TH AT THERE WAS NO LETTING OUT OF THE PREMISES AND NO RENT WAS RECEIVED. THUS THE AS SESSING OFFICER MADE TOTAL ADDITION OF RS.1,69,50,000/- WHILE MAKING THE ASSES SMENT UNDER SECTION 144 OF THE INCOME TAX ACT. IN VIEW OF ABOVE, THE ASSESSIN G OFFICER LEVIED PENALTY @ 100% OF THE TAX SOUGHT TO BE EVADED ON THE AMOUNT O F RS.1,69,50,000/- WHICH ITA NO.4938/M/11 M/S. APNA ELECTRONICS P. LTD. 2 COMES TO RS.67,03,725/-. THE LD. CIT(A) HAS ALSO C ONFIRMED THE ACTION OF THE ASSESSING OFFICER. 3. AT THE TIME OF HEARING THE LD. A.R. SUBMITTED TH AT IN THE QUANTUM PROCEEDINGS, THE TRIBUNAL VIDE ITS ORDER DATED 25.0 5.11 HAS SET ASIDE THE ASSESSMENT BY RESTORING THE MATTER TO THE ASSESSING OFFICER TO MAKE FRESH ASSESSMENT AS PER LAW AFTER ALLOWING REASONABLE OPP ORTUNITY OF BEING HEARD. THE LD. A.R. FILED A SAID COPY OF THE ORDER OF THE TRIBUNAL WHICH IS PLACED AT PAGES 1 TO 3 OF THE PAPER BOOK. HE SUBMITTED THAT IN VIEW OF THE ABOVE, THE PENALTY ORDER PASSED BY THE AUTHORITIES BELOW UNDER SECTION 271(1)(C) OF THE ACT DOES NOT SURVIVE AS THE VERY BASIS ON WHICH THE PENALTY ORDER WAS PASSED FOR MAKING THE ADDITION AS HAS BEEN SET ASIDE BY TH E TRIBUNAL. THE LD. D.R. HAS NOT DISPUTED THE ABOVE CONTENTION OF THE ASSESSEE. 4. IN VIEW OF THE ABOVE FACTS AND CONSIDERING THE O RDER OF THE TRIBUNAL DATED 25.05.11 IN THE QUANTUM PROCEEDINGS, THE PENA LTY ORDER PASSED BY THE ASSESSING OFFICER TO LEVY THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS SET ASIDE BY ALLOWING THE GROUNDS OF APPEAL TAKEN BY TH E ASSESSEE. HOWEVER, THE ASSESSING OFFICER WILL BE AT LIBERTY TO INITIATE FR ESH PENALTY PROCEEDINGS AFTER MAKING THE FRESH ASSESSMENT ORDER, IF IT IS SO DECI DED, AS PER LAW. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 06.11.2013. SD/- SD/- (RAJENDRA) (B.R. MITTAL) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 06.11.2013. * KISHORE ITA NO.4938/M/11 M/S. APNA ELECTRONICS P. LTD. 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR C BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.