The Dy. CIT, Circle-4(1)(2), Ahmedabad V. M/s. Torrent Pvt. Ltd., Ahmedabad

ITA 563/AHD/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5672 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 06-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Assessee Lawyers: P M MEHTA WITH G M THAKOR
• Section: 271(1)(c)

Judgement Text

ITA NO.563/AHD/2017 ASSESSMENT YEAR: 2003-04 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.563/AHD/2017 ASSESSMENT YEAR: 2003-04 DY. COMMISSIONER OF INCOME TAX, VS. M/S.TORRENT PVT . LTD., CIRCLE 4(1)(2), AHMEDABAD. TORRENT HOUSE, OFF ASHAM ROAD, NEAR DINESH HALL, AHMEDABAD. [PAN AAACT 5459 R] (APPELLANT) (RESPONDENT) APPELLANT BY : O.P. SHARMA, CIT (DR) RESPONDENT BY : P.M. MEHTA WITH G.M. THAKOR, AR DATE OF HEARING : 19.11.2018 DATE OF PRONOUNCEMENT : 29.11.2018 O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER: THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAIN ST ORDER OF LD. CIT(A) DATED 19.12.2016 FOR THE ASSESSMENT YEAR 2003-04. 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUND OF AP PEAL :- WHETHER THE LD. CIT(A) IS RIGHT IN LAW AND ON FAC T IN DELETING THE PENALTY LEVIED OF RS.4,84,75,000/- UNDER SECTION 271(1)(C) OF THE ACT. 3. IN THIS CASE QUANTUM HAS BEEN DELETED BY THE ITA T IN ITA NO.1163/AHD/2014 VIDE ORDER DATED 13.04.2018 AND COPY OF THE ORDER H AS BEEN FILED BY THE ASSESSEE IN PAPER BOOK PAGE NOS.25 TO 43 AND RELEVANT PAGE IS 4 2 PARAGRAPH NO. 29, THE SAME IS REPRODUCED AS UNDER : 29. WE HAVE HEARD BOTH THE PARTIES REITERATING THEI R RESPECTIVE STANDS. CASE FILE PERUSED. LEARNED SENIOR COUNSEL FIRST OF ALL TAKES US TO PAGE 24 IN PAPER BOOK. HIS CASE IS THAT THE ASSESSEE HAD S HOWN INVESTMENT AMOUNT IN BALANCE SHEET OF RS.4,90,26,84,859/- AS O N 31.03.2003. HE THEN REFERS TO ASSESSEES P&L ACCOUNT CREATING PROVISION FOR THE IMPUGNED DIMINUTION AMOUNTING TO RS.13.85CRORES. THIS FOLLO WS PAGE 31(SCHEDULE IV) INDICATING THE ASSESSEE TO HAVE ARRIVED AT THE ABOVE INVESTMENT FIGURE. ITA NO.563/AHD/2017 ASSESSMENT YEAR: 2003-04 PAGE 2 OF 2 LASTLY COMES PAGE 57 CONTAINING DETAILS OF ASSESSEE S PROVISION IN THE IMPUGNED ASSESSMENT ORDER OF RS.69,46,73,244/- AS W ELL AS SIMILAR PROVISIONS WRITTEN BACK AMOUNTING TO RS.55,61,73,24 4/-. THE ASSESSEES CASE ACCORDINGLY IS IT HAS DULY FOLLOWED NETTING PR INCIPLE AS PER HONBLE JURISDICTIONAL HIGH COURTS JUDGMENT IN VODAFONE ES SARS CASE (SUPRA). THESE CRUCIAL FACTS EVIDENT FROM CASE RECORD HAVE G ONE UNREBUTTED FROM REVENUE SIDE. WE THUS TAKE INTO ACCOUNT ALL THIS C OGENT MATERIAL AS WELL AS LEGAL PROPOSITION SETTLED BY HONBLE JURISDICTIO NAL HIGH COURT TO ACCEPT ASSESSEES INSTANT FIRST SUBSTANTIVE GROUND AS IT H AS DULY FOLLOWED THE NETTING PRINCIPLE PROPOUNDED IN THE HONBLE FULL BE NCH DECISION. WE MAKE IT CLEAR THAT THEIR LORDSHIPS HAVE ALREADY CONSIDER ED ALL THE CASE LAWS INCLUDING HCL COMMET (SUPRA). WE THUS ACCEPT ASSES SEES FORMER SUBSTANTIVE GROUND. 4. SINCE THE ITAT HAS GIVEN RELIEF TO THE APPELLANT IN QUANTUM PROCEEDINGS, NOW NOTHING REMAINS. THEREFORE, PENALTY IMPOSED BY THE REVENUE IS DELETED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF NOVEMBER, 2018. SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, THE 29 TH DAY OF NOVEMBER, 2018 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER UE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD