ASST CIT CIR 6(1), MUMBAI V. AARTI DRUGS LTD, MUMBAI

ITA 6156/MUM/2013

• Counselvise Citation: 615619914 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 21-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAGHUVEER MADNAPPA
• Assessee Lawyers: BHAVIN M DEDHIA

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI !, ' #$ %%, & #$ ' BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO.6156/M/2013 ( &* + &* + &* + &* + / ASSESSMENT YEAR: 2006-07) ASST. COMMISSIONER OF INCOME -TAX, CIR.6(1), R.NO.506, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400 020 * * * * / VS. M/S. AARTI DRUGS LTD., PLOT NO.109-D, 3 RD FLOOR, MAHENDRA INDUSTRIAL ESTATE, SION (EAST), MUMBAI 400 022 PAN: AAACA4410D ( ,- / APPELLANT) ( ./,- /RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI BHAVIN M. DEDHIA, A.R. REVENUE BY : RAGHUVEER MADNAPPA, D.R. * 0 1' / DATE OF HEARING : 08.09.2015 23+ 0 1' / DATE OF PRONOUNCEMENT : 08.09.2015 # 4 / O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 02.08.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2006-07. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD . CIT(A) IN DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER (HEREINAFTE R REFERRED TO AS THE AO) UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT. THE QUANTUM ADDITION IN THIS CASE WAS MADE BY THE AO ON THE GROUND OF TAXABILITY OF INCOME ON CESSATION OF DEFERRED SALES TAX LIABILITY. THE ASSESSEE CLAIMED THAT THE REMISSION OF DEFERRED SALES TAX WAS EXEMPT FROM TAXATION. HOWEVER, THE A O HELD THAT THE INCOME ITA NO.6156/M/2013 M/S. AARTI DRUGS LTD. 2 ACCRUED ON ACCOUNT OF CESSATION OF LIABILITY WAS TA XABLE UNDER SECTION 41(1) OF THE ACT. THE AO ALSO INITIATED PENALTY PROCEEDINGS AND LEVIED THE PENALTY. THE MATTER IN THE QUANTUM PROCEEDINGS TRAVELLED BEF ORE THE TRIBUNAL AND THE TRIBUNAL, VIDE ORDER DATED 16.05.12 PASSED IN ITA N O.6738/M/2010, HAS DELETED THE QUANTUM ADDITIONS MADE BY THE AO ON THI S ISSUE. SINCE THE QUANTUM ADDITIONS HAVE BEEN DELETED BY THE TRIBUNAL IN THIS CASE, HENCE THE VERY BASIS UPON WHICH THE PENALTY WAS LEVIED IN THI S CASE HAS CEASED TO EXIST. THE CONSEQUENTIAL PENALTY, THEREFORE, HAS NO LEGS T O STAND. THEREFORE THERE IS NO MERIT IN THE APPEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08.09.2015. # 4 0 23+ ' 5 6#*7 08.09.2015 3 0 % SD/- SD/- ( ! / RAJENDRA) ( %% / SANJAY GARG) ' #$ / ACCOUNTANT MEMBER & #$ / JUDICIAL MEMBER /MUMBAI ; 6#* / DATED 08.09.2015 * KISHORE # 4 0 .&1IJ K J+1 # 4 0 .&1IJ K J+1 # 4 0 .&1IJ K J+1 # 4 0 .&1IJ K J+1/COPY OF THE ORDER FORWARDED COPY OF THE ORDER FORWARDED COPY OF THE ORDER FORWARDED COPY OF THE ORDER FORWARDED TO TOTO TO : :: : 1. ,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. ]1 () / THE CIT(A)- 4. ]1 / CIT 5. JC% .&1&* , , / THE DR CONCERNED BENCH, 6. %G H / GUARD FILE. # 4* # 4* # 4* # 4* / // / BY ORDER, /J1 .&1 //TRUE COPY// L LL L/ // /M M M M ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI / ITAT, MUMBAI / ITAT, MUMBAI / ITAT, MUMBAI