A.C.I.T,CIRCLE 7(1), MUMBAI V. M/S. PIRAMAL ENTERPRISES PVT.LTD., MUMBAI

ITA 5915/MUM/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2754 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 06-10-2009
• Assessment Year: 1998-1999
• Appeal Filed On: 26-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEBASHIS CHANDRA
• Assessee Lawyers: MEENA JAIN
• Section: 271(1)(c); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: MUMBAI BEFORE SHRI R S SYAL, ACCOUNTANT MEMBER AND SHRI V D RAO, JUDICIAL MEMBER ITA NO 5915/MUM/2008 (ASSESSMENT YEAR: 1998-99) ACIT CIRCLE -7(1), 622, AAYAKAR BHAVAN, M K MARG, MUMBAI VS M/S PIRAMAL ENTERPRISES PVT LTD, ADMINISTRATIVE BUILDING, MORARJEE MILLS, DR AMBEDKAR ROAD, PAREL, MUMBAI -400 012 PAN: AAACP 8989 J APPELLANT RESPONDENT APPELLANT BY: SHRI DEBASHIS CHANDRA RESPONDENT BY: MS MEENA JAIN ORDER PER V D RAO, JUDICIAL MEMBER THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER OF THE CIT (A) XIX DATED 31.12.2003 FOR THE ASSESSMENT YEAR 1998-99. THE ON LY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT (A) ERRED IN DELETING THE PENALTY AMOUNT TO RS 36,76,91 8/- BASED ON THE AOS ORDER DATED 31.01.2008 GIVING EFFECT TO THE ITATS ORDER, WHICH IS PRESENTLY UNDER CONSIDERATION IN PROCEEDINGS U/S 263 OF THE I T ACT, 1961. 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF INVESTMENT AS WELL AS QUALITY MANAGEMENT ACTIVITY OF PIRAMAL GROU P COMPANIES. THE ASSESSEE HAD CLAIMED AN AMOUNT OF RS 1,39,33,952/- PAID AS INTER EST ON LOAN TAKEN FROM M/S MORARJEE MILLS LTD, WHICH WAS UTILISED FOR PURCHASI NG THE SHARES OF M/S STRUTH INTERNATIONAL LTD (MAURITIUS). THIS CLAIM OF THE A SSESSEE WAS DISALLOWED BY THE ASSESSING OFFICER. SUBSEQUENTLY, ASSESSING OFFICER HAS INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT. 3. AT THE TIME OF HEARING, THE LEARNED COUNSEL OF T HE ASSESSEE HAS SUBMITTED THAT THE ASSESSING OFFICER WHILE GIVING EFFECT TO THE OR DER OF THE ITAT, THE ASSESSING OFFICER VIDE HIS ASSESSMENT ORDER DATED 31.01.2008, ALLOWED THE INTEREST CLAIM OF RS ITA 5915/M/08 M/S PIRAMAL ENTERPRISES PVT LTD 2 1,39,33,952/- IN FAVOUR OF THE ASSESSEE. THE LEARN ED CIT (A) DELETED THE PENALTY ON THE GROUND THAT THE ASSESSING OFFICER HAS ALREADY A LLOWED THE CLAIM OF THE ASSESSEE BY ORDER DATED 31.01.2008. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE VERY BASIS FO R THE IMPOSITION OF THE PENALTY WAS ALLOWED BY THE ASSESSING OFFICER WHILE GIVING EFFEC T TO THE ITAT ORDER, THEREFORE, THE VERY IMPOSITION OF PENALTY CANNOT SURVIVE. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LEARNED CIT (A) AND WE UPHOLD THE SAME. ACC ORDINGLY, GROUND RAISED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT TODAY ON THE 4TH DAY OF DECEMBER 2009. SD/- (R S SYAL) ACCOUNTANT MEMBER SD/- (V D RAO) JUDICIAL MEMBER MUMBAI, DATE: 4TH DECEMBER 2009 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) -XIX, MUMBAI. 4) THE CIT-CITY-VII, MUMBAI. 5) THE D.R. C BENCH, ITAT, MUMBAI BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR CHAVAN* I.T.A.T., MUMBAI ITA 5915/M/08 M/S PIRAMAL ENTERPRISES PVT LTD 3 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 02.12.09 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 03.12.09 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS SR.PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS 7 FILE SENT TO THE BENCH CLERK SR.PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER