ITO 20(2)(3), MUMBAI V. PATEL MINERALS, MUMBAI

ITA 5956/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93001 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 07-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.5956/M/2013 ASSESSMENT YEAR: 2007-08 THE ITO-20(2)(3), 411, PIRAMAL CHAMBERS, LALBAUG, MUMBAI - 400012 VS. M/S. PATEL MINERALS, C-5, DALIA INDUSTRIAL ESTATE, OFFICE NO.104, 1 ST FLOOR, OFF NEW LINK ROAD, ANDHERI-(W), MUMBAI 400 058 PAN: AAJFM 1965B (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI ADITYA AJGAONKAR, A.R. REVENUE BY : SHRI PREMANAND. J, D.R. DATE OF HEARING : 07.04.2015 DATE OF PRONOUNCEMENT : 24.06.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 24.07.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2007-08. 2. THE REVENUE HAS AGITATED THE ACTION OF THE LD. C IT(A) IN DELETING THE PENALTY WHICH WAS LEVIED BY THE ASSESSING OFFICER ( HEREINAFTER REFERRED TO AS THE AO) UNDER SECTION 271(1)(C) OF THE ACT. 3. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE HAS BROUGHT OUR ATTENTION TO PARA 2.2 OF THE IMPUGNED ORDER WHEREIN THE LD. CIT( A) HAS OBSERVED THAT THE QUANTUM ADDITIONS ON THE BASIS OF WHICH THE IMPUGNE D PENALTY HAD BEEN ITA NO.5956/M/2013 M/S. PATEL MINERALS 2 LEVIED, HAD ALREADY BEEN DELETED BY THE TRIBUNAL VI DE ORDER DATED 21.12.2012 IN ITA NO.3202/M/2011. THE LD. CIT(A), THEREFORE, HAS OBSERVED THAT SINCE THE ENTIRE QUANTUM ADDITION HAD BEEN DELETED BY THE ITA T, HENCE THERE WAS NO SCOPE OF LEVY OF PENALTY IN RELATION TO THE SAID AD DITIONS. HE, THEREFORE, HAS DELETED THE IMPUGNED PENALTY. 4. BEFORE US, THE REVENUE, IN ITS GROUNDS OF APPEAL , HAS CONTENDED THAT THE REVENUE HAS FILED AN APPEAL BEFORE THE HONBLE HIGH COURT AGAINST THE ORDER OF THE TRIBUNAL. IN OUR VIEW, MERELY BECAUSE THE REVE NUE HAS PREFERRED AN APPEAL BEFORE THE HONBLE HIGH COURT AGAINST THE ORDER OF THE TRIBUNAL IN THE QUANTUM PROCEEDINGS, THAT ITSELF, CANNOT BE A GROUND FOR SU STAINING OF THE PENALTY IN QUESTION. THE ORDER OF THE TRIBUNAL IS STILL OPERA TIVE AND UNDER SUCH CIRCUMSTANCES, THE VERY BASIS UPON WHICH THE PENALT Y HAS BEEN LEVIED HAS CEASED TO EXIST. THEREFORE, THE CONSEQUENTIAL PENA LTY HAS NO LEGS TO STAND. WE THEREFORE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN DELETING THE IMPUGNED PENALTY. THERE IS NO MERIT IN THE APP EAL OF THE REVENUE AND THE SAME IS ACCORDINGLY HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24.06.015. SD/- SD/- (SANJAY ARORA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 24.06.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI ITA NO.5956/M/2013 M/S. PATEL MINERALS 3 THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.