DCIT 12(2)(1), MUMBAI V. FIRST FLIGHT COURIERS P.LTD, MUMBAI

ITA 5400/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0071 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 01-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJEET PATANKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 5400/MUM/2016 (ASSESSMENT YEAR: 2010-11) D C I T - 12(2(1) ROOM NO. 223, 2ND FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI 400020 VS. M/S. FIRST FLIGHT COURIERS P. LTD. G 1001/02, LOGUS CORPORTE PARK OFF JAY COACH FLYOVER, WESTERN EXP. HIGH WAY, GRAHAM FIRTH STEEL COMP., GOREGAON (E) MUMBAI 400064 PAN AAACF0841R APPELLANT RESPONDENT APPELLANT BY: SHRI ABHIJEET PATANKAR RESPONDENT BY: SHRI RAJESH AGRAWAL DATE OF HEARING: 20.02.2018 DATE OF PRONOUNCEMENT: 20.02.2018 O R D E R PER C.N. PRASAD, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A)-9, MUMBAI DATED 10.06.2016 FOR A.Y. 2010-11 IN DELETING THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOM E TAX ACT, 1961 (HEREINAFTER THE ACT). 2. AT THE OUTSET THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITION/DISALLOWANCE MADE IN RESPECT OF EXPENDITUR E CLAIMED ON ACCOUNT OF COMPENSATION PAYABLE BY THE ASSESSEE HAS BEEN DE LETED BY THE COORDINATE BENCH IN ITA NO. 3436/MUM/2014 VIDE ORDE R DATED 10.08.2016. THUS THE LEARNED COUNSEL SUBMITTED THAT SINCE THE ADDITION/DISALLOWANCE MADE IN THE QUANTUM PROCEEDIN GS IS DELETED BY THE TRIBUNAL THE PENALTY UNDER SECTION 271(1)(C) CANNOT STAND. A COPY OF THE ORDER OF THE COORDINATE BENCH IS PLACED ON RECORD. ITA NO. 5400/MUM/2016 M/S. FIRST FLIGHT COURIERS P. LTD. 2 3. WE HAVE PERUSED THE ORDER OF THE COORDINATE BENCH I N ITA NO. 3436/MUM/2014 DATED 10.08.2016 AND FIND THAT THE AD DITION/ DISALLOWANCE MADE ON ACCOUNT OF EXPENDITURE CLAIME D TOWARDS COMPENSATION ON DAMAGE AND LOSS HAS BEEN DELETED BY THE TRIBUNAL. IN THE CIRCUMSTANCES THE PENALTY LEVIED UNDER SECTION 271( 1)(C) HAS NO LEGS TO STAND AS THE VERY BASIS FOR INITIATION OF PENALTY H AS BEEN DELETED BY THE TRIBUNAL. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH FEBRUARY, 2018. SD/ - SD/ - (A.L. SAINI) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 20 TH FEBRUARY, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -9, MUMBAI 4. THE PR. CIT - 4, MUMBAI 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.