NARENDRA SHAH, MUMBAI V. JCIT 25(1), MUMBAI

ITA 5117/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0493 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 07-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K AGARWAL
• Assessee Lawyers: NAVEEN KUMAR MISHRA
• Keywords: Gift
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B, MU MBAI BEFORE SHRI P.K. BANSAL, VICE-PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 5117/MUM/2014 (ASSESSMENT YEAR- 2009-10) SHRI NARENDRA SHAH, MOHANLAL JAIN & CO. CHARTERED ACCOUNTANTS, OFFICE NO.10, CHARTERED HOUSE, GROUND FLOOR, DR. C H STREET, MARINE LINES, MUMBAI-400002 PAN: AANPS0866M VS. DCIT 25(1), BANDRA KURLA COMPLEX, MUMBAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI NAVEEN KUMAR MISHRA (AR) REVENUE BY : SHRI V.K. AGARWAL (DR) DATE OF HEARING : 31.05.2017 DATE OF PRONOUNCEMENT : 31.05.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY ASSESSEE U/S. 253 OF THE INCOME-TAX ACT (THE ACT) IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX-35, MUM BAI [THE CIT], MUMBAI DATED 13.05.2014 FOR THE ASSESSMENT YEAR 2009-10. T HE ASSESSEE HAS RAISED SOLITARY GROUND OF APPEAL THAT LD. CIT(A) ERRED IN UPHOLDING THE PENALTY LEVIED BY ASSESSING OFFICER (AO) U/S 271(1)(C) OF THE ACT OF RS. 43,39,500/- . 2. AT THE OUTSET OF THE HEARING, THE LD. AUTHORIZED RE PRESENTATIVE (AR) OF THE ASSESSEE SUBMITTED THAT THE AO LEVIED THE PENALTY O N ACCOUNT OF ADDITIONS OF RS.1,03,86,340/- U/S 68 OF THE ACT, ADDITION OF RS. 21,78,517/- U/S 69 AND ADDITION OF RS. 2,02,100/- ON ACCOUNT OF GIFT U/S 68 OF THE ACT. IT WAS FURTHER ARGUED THAT THE ITA NO.511 7/M/2014- SHRI NARENDRA SHAH 2 ASSESSEE FILED APPEAL BEFORE THE TRIBUNAL IN QUANTU M ASSESSMENT VIDE APPEAL ITA NO. 6904/M/2012 WHICH WAS DECIDED VIDE ORDER DATED 06.08.2015. THE TRIBUNAL IN ITS DECISION RESTORED ALL THE GROUNDS OF APPEAL TO THE FILE OF AO. THUS, THE PENALTY ORDER DOES NOT SURVIVE. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE NOT DISPUTED THE FACTUAL POSIT ION ARGUED BY LD. AR OF THE ASSESSEE. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE PAR TIES AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW INCLUDING THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE FOR THE SAME ASSESSMENT ORDER, WHEREIN THE GROUNDS OF APPEAL RELATED TO ALL THE ADDITIONS ON THE BASIS OF WHICH THE PENALTY WAS LEV IED, IS RESTORED TO THE FILE OF AO. CONSIDERING THE FACT THAT ALL THE GROUNDS OF AP PEAL ARISING OUT OF QUANTUM ADDITION HAVE ALREADY BEEN RESTORED TO THE FILE OF AO. HENCE, THE PENALTY ORDER UNDER SECTION 271(1) ( C) DATED 28.03.2014 DOES NOT SURVIVE AND THE SAME IS SET- ASIDE. HOWEVER, THE AO WILL BE AT LIBERTY TO CONSI DER THE INITIATION OF PENALTY ORDER IN ACCORDANCE WITH LAW, AFTER GIVING EFFECT T O THE ORDER OF TRIBUNAL IN ITA NO. 6904/MUM/2012. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 D AY OF MAY 2017. SD/- SD/- (VICE-PRESIDENT) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 31 /05/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. ITA NO.511 7/M/2014- SHRI NARENDRA SHAH 3 BY ORDER, (ASSTT.REGISTRAR) ITAT, MUMBAI 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/