ACIT, NCC-1, MADURAI V. M/S. THE VIKAS ACADEMY, MADURAI

ITA 56/CHNY/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1684 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 09-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: B RAMAKRISHNAN
• Section: 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ITA NO . 5 6 /CHNY/ 20 20 ASSESSMENT YEAR: 20 09 - 10 THE ASSISTANT COMMISSIONER OF INCOME - TAX, NON - CORPORATE CIRCLE 1, MADURAI 625 002 VS. M/S. THE VIKAS ACADEMY, VIKASA SCHOOL COMPOUND, ARAPALAYAM CROSS ROAD, PONNAGARAM, MADURAI 625 016. [PAN: AADFT 2762M] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : M S. ANITHA, JCIT /RESP ONDENT BY : MR. B. RAMAKRISHNAN, C.A. / DATE OF HEARING : 13.05. 2020 / DATE OF PRONOUNCEMENT : 13.05. 2020 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1, MADURAI IN I . T . A NO. 0149/2015 - 16 DATED 18.10.2019 FOR THE ASSESSMENT YEAR 20 09 - 10 AGAINST THE DELETION OF THE PENALTY LEVIED U/S.271(1)(C) OF THE INCOME TAX ACT, 1961. ITA NO. 5 6 /CHNY/2020 : - 2 - : 2 . MS. ANITHA, JCIT REPRESENTED ON BEHALF OF THE REVENUE AND MR. B. RAMAKRISHNAN, CHARTERED ACCOUNTANT REPRESENTED ON BEHALF OF THE ASSESSEE . 3 . IT WAS SUBMITTED BY THE LEARNED DEPARTMENTAL REPRESENTATIVE THAT AN ADDITION HAD BEEN MADE IN THE COURSE OF THE ASSESSMENT BY INVOKING THE PR OVISIONS OF SECTION 45(4) OF THE INCOME TAX ACT, 1961 IN RESPECT OF THE TRANSFER OF THE SHARES OF THE OUT - GOING PARTNER. IT WAS A SUBMISSION THAT THE ISSUE HAD BEEN TAKEN BY THE ASSESSEE IN APPEAL BEFORE THE LEARNED TRIBUNAL WHICH HAD HELD THE ISSUE IN FA VOUR OF THE REVENUE. IT WAS FURTHER A SUBMISSION THAT THE ASSESSEE HAD FILED A TAX CASE APPEAL NO.716/2015 WHICH CAME TO BE DISPOSED OF BY THE HONBLE JURISDICTIONAL HIGH COURT OF MADRAS VIDE ORDER DATED 16.09.2019, WHEREIN THE ISSUE HAD BEEN HELD IN FAVO UR OF THE ASSESSEE. IT WAS A SUBMISSION THAT CONSEQUENT TO THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT OF MADRAS IN THE CASE OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR DELETING THE ADDITION, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAD DELETED THE PENALTY LEVIED VIDE HIS ORDER DATED 08.10.2019. IT WAS A SUBMISSION BY THE LEARNED DEPARTMENTAL REPRESENTATIVE THAT THE REVENUE HAS NOT ACCEPTED THE ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE TAX CASE APPEAL NO.716/2015 AND THE APPEAL HAS BEEN ITA NO. 5 6 /CHNY/2020 : - 3 - : PREFERRED BEFORE THE HONBLE SUPREME COURT. IT WAS A SUBMISSION THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS LIABLE TO BE REVERSED. 4. IN REPLY, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE QUANTUM A DDITION HAS BEEN DELETED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE TAX CASE APPEAL REFERRED TO ABOVE IN THE ASSESSEES OWN CASE. IT WAS A SUBMISSION THAT CONSEQUENTLY THE PENALTY AS LEVIED IS LIABLE TO BE DELETED AND THE LEARNED COMMISSIONER OF INCO ME TAX (APPEALS) HAS RIGHTLY DONE SO. THE LEARNED AUTHORIZED REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). 5 . WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 6. A PERUSAL OF THE ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CASE IN THE TAX CASE APPEAL NO.716/2015 DATED 16.09.2019 SHOWS THAT THE HONBLE JURISDICTIONAL HIGH COURT HAS FOLLOWED ITS EARLIER ORDER IN THE CASE OF NATIONAL COMPANY V S. ASSISTANT COMMISSIONER OF INCOME TAX IN TAX CASE APPEAL NOS.3 6 5 & 3 6 6 OF 2009 DATED 08.04.2019 AND HAS HELD THE ISSUE IN RESPECT OF THE TRANSFER CONTEMPLATED U/S.45(4) OF THE INCOME TAX ACT, 1961 IN FAVOUR OF THE ITA NO. 5 6 /CHNY/2020 : - 4 - : ASSESSEE. A PERUSAL OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) SHOWS THAT HE HAS CONSIDERED THE FACT THAT THE QUANTUM ADDITION HAS BEEN DELETED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CASE FOR THE RELEVANT ASSESSMENT YEAR AND AS THE QUANTUM ADDITION ITSELF NO MORE EXISTS HAS DELETED THE PENALTY. THIS BEING SO, WE FIND NO ERROR IN THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WHICH CALLS FOR ANY INTERFERENCE. 7 . IN THE RESULT, THE APPEAL OF THE REVENUE IN I.T.A. NO. 5 6 /CHNY/2 0 20 STANDS DISMISSED . OR DER PRONOUNCED IN THE OPEN COURT ON 13 TH MAY , 2020 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER / CHENNAI, / DATED: 13 TH MAY , 2020 IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF