ITO (IT)1(1), MUMBAI V. PRAFUL CHANDARIA, AHEMEDABAD

ITA 5483/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2105 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 02-06-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 28-08-2014
• Court: TRIBUNAL
• Department Lawyers: C W ANGOLKAR
• Keywords: Double taxation relief

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI PAWAN SINGH (JM) I.T.A. NO. 5483 /MUM/ 2014 (ASSESSMENT YEAR 200 2 - 0 3 ) ITO (INTERNATIONAL TAXATION) - 1(1) ROOM NO. 015, GROUND FLOOR SCINDIA HOUSE BALLARD PIER MUM BAI - 400 038. VS. MR. PRAFUL CHANDARIA THROUGH HIS AR MR. JOYKRISHNA H. DALIA C/O. MUKESH M. SHAH & CO., CAS 1 ST FLOOR, H.K. HOUSE OFF. ASHRAM ROAD AHMEDABAD - 380 009. ( APPELLANT ) ( RESPONDENT ) PAN NO . NOT ALLOTTED ASSESSEE BY NONE DEPARTMENT BY SHRI C.W. ANGOLKAR DATE OF HEARING 10 .1 1 . 201 6 DATE OF PRONOUNCEMENT 10 . 11 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APP E AL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 28.2.2014 PASSED BY THE LEARNED CIT(A) - 10, MUMBAI DELETING THE PENALTY OF ` 3.58 CRORES LEVIED BY THE ASSESSING OFFICER U/S. 271(1)(C) OF THE ACT FOR A.Y. 2002 - 03. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSING OFFICER HAD LEVIED PENALTY ON TH E AMOUNT OF ` 11.71 CRORES ASSESSED BY HIM UNDER THE HEAD INCOME FROM OTHER SOURCES IN RESPECT OF THE AMOUNT RECEIVED BY THE ASSESSEE PURSUANT TO CALL OPTION AGREEMENT. LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE TRIBUNAL HAS DECIDED THIS ISSU E IN FAVOUR OF THE ASSESSEE BY HOLDING THAT THE ABOVE SAID AMOUNT IS NOT ASSESSABLE AS PER INDO - SINGAPORE DTAA. IN THE RESULT, THE IMPUGNED ADDITION HAS BEEN DELETED BY THE TRIBUNAL MR. PRAFUL CHANDARIA 2 IN ASSESSEES CASE, VIDE ITS ORDER DATED 26.8.2016 PASSED IN ITA NO. 4313/ MUM/2011 AND 4717/MUM/2013 (2016) 73 TAXMAN N.COM 14 ) . 3. SINCE THE ADDITION, ON WHICH THE IMPUGNED PENALTY WAS LEVIED, HAS BEEN SET ASIDE BY THE TRIBUNAL THE P E NALTY ORDER DOES NOT HAVE LEGS TO STAND ON ITS OWN. ON THIS REASONING, WE CONFIRM THE DECISION RENDERED BY THE LEARNED CIT(A). 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 10 .1 1 .2016 SD/ - SD/ - (PAWAN SINGH) (B.R.BASKARAN) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI ; DATED : 10 / 1 1 / 20 1 6 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