D.C.I.T.,CIRCLE3(1), MUMBAI V. M/S. EMERSON PROCESS MANAGEMENT (I) PVT.LTD.(FORMERLY KNOWN AS M/S. FISHER ROSEMOUNT (I) LTD), MUMBAI

ITA 6004/MUM/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1639 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 20-05-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 03-10-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN KUMAR
• Assessee Lawyers: PURVI GANDHI
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI VIJAY PAL RAO, JM ITA NO.6004/MUM/2008 : ASST.YEAR 2000-2001 THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 3(1) MUMBAI. VS. M/S.EMERSON PROCESS MANAGEMENT (I) P.LTD (FORMERLY KNOWN AS M/S.FISHER ROSEMOUNT (I) LTD.), D-WING, 2 ND FLOOR MODERN MILLS COMPOUND SANE GURUJI MARG, JACOB CIRCLE MUMBAI 400 011. PA NO.AAACF2180R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHRAVAN KUMAR RESPONDENT BY : MS.PURVI GANDHI O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 25.07.2008 DELETING THE PENALTY OF RS.6,35,149 IMPOSED BY THE ASSESSING OFFICER U/S.27 1(1) (C) IN RELATION TO THE ASSESSMENT YEAR 2000-2001. 2. FILTERING OUT UNNECESSARY DETAILS IT IS SEEN THA T THE LEARNED CIT(A) HAS DELETED THE PENALTY BY RELYING ON THE FACT THAT THE INCOME WAS ASSESSED AT A LOSS. IN DELETING THE PENALTY HE RELIED ON THE JUDGEMENT OF THE HONBLE SUPREME COURT IN THE CASE OF VIRTUAL SOFT SYSTEMS LTD. VS. CIT [(2007) 289 ITR 8 3 (SC)]. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD WE FIND THAT THE DECISION RENDERED BY THE HO NBLE SUPREME COURT IN VIRTUAL SOFT SYSTEMS LTD. (SUPRA) HAS BEEN SUBSEQUENTLY REVERSED IN CIT VS. GOLD COIN HEALTH FOOD P.LTD. [(2008) 304 ITR 308 (SC)] BY HOLDING THAT EVEN IF THE ASSESSED INCOME IS LOSS, THE PENALTY U/S 271(1) IS STILL EX IGIBLE. AS THE LEARNED CIT(A) HAS NOT DEALT WITH THE ISSUE ON MERITS AND SIMPLY RELIE D ON THE JUDGEMENT IN THE CASE OF VIRTUAL SOFT SYSTEMS LTD. (SUPRA) , WHICH IS NO MORE A GOOD LAW, WE SET ASIDE THE ITA NO.6004/MUM/2008 M/S.EMERSON PROCESS MANAGEMENT (I) PVT. LTD. 2 IMPUGNED ORDER AND RESTORE THE MATTER TO HIS FILE F OR TAKING A FRESH DECISION ON THE MERITS OF THE CASE AS PER LAW AFTER ALLOWING A REAS ONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 31 ST DAY OF MAY 2010. SD/- SD/- ( VIJAY PAL RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT M EMBER MUMBAI : 31 ST MAY, 2010 . DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A)-XXVIII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.