ITO 15(3)(1), MUMBAI V. PHARMA SEARCH, MUMBAI

ITA 639/MUM/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0796 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business expenditure

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA, (JM) . . , , ./ I .T.A. NO. 639 / MUM/20 1 4 ( / ASSESSMENT YEAR : 2 007 - 08 ) INCOME TAX OFFICER - 15 (3) (1) , ROOM NO.106, MATRU MANDIR OPP BHATIA HOSPITAL, GRANT ROAD, TARDEO ROAD, MUMBAI - 400007 / VS. M/S PHARMA SEARCH, 2202, TURINO, HIRANANDANI GARDE N, POWAI, MUMBAI - 4000 76 . ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AAIFP1230H / APPELLANT BY SHRI PREMANAND J / RSPONDENT BY SHRI DE VENDRA H JAIN / DATE OF HEARING : 6. 7 . 201 5 / DATE OF PRONOUNCEMENT : 6.7 . 201 5 / O R D E R PER B.R. BASKARAN (AM) THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 7.11.2013 PASSE D BY LD. COMMISSIONER OF INCOME TAX - (A) - 2 6 , MUMBAI , FOR ASSESSMENT YEAR 2007 - 08 , WHEREIN THE LD.CIT(A) HAS DELETED THE PENALTY LEVIED BY THE AO UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (THE ACT) 2. AT THE TIME OF HEARING, THE LD. C OUNSEL APPEA RING FOR THE ASSESSEE SUBMITTED THAT THE IMPUGNED PENALTY WAS LEVIED BY THE AO FOR CONCEALMENT OF PARTICULARS OF INCOME TO THE TUNE OF RS.45,80,646/ - ITA NO. 639 / MUM/20 1 4 2 (740,646/ - FOR CONSULTANCY CHARGES AND RS.38,40,000/ - FOR KEYMAN INSURANCE PREMIUM) . ON APPEAL BEFORE THE F IRST APPELLATE AUTHORITY, THE LD. CIT( A) SUSTAINED THE ADDITION OF CONSULTANCY CHARGES RS.740,646/ - . WITH REGARD TO THE ADDITION OF RS.42 LAKHS, THE LD.CIT(A) G AVE RELIEF TO THE EXTENT OF RS.3,60,000/ - AND CONFIRMED THE REMAINING AMOUNT OF RS.38,40,000/ - BEING NON BUSINESS EXPENDITURE. ON FURTHER APPEAL, THE TRIBUNAL IN THE QUANTUM ASSESSMENT PROCEEDING, VIDE ITS ORDER D AT ED 2.5.2012 RENDERED IN ITA NO.7303/MUM/2010(AY - 2007 - 08) DELETED BOTH THE ADDITION S THAT WERE CONFIRMED BY LD. CIT(A). SINCE THE ADDITI ONS , ON WHICH THE IMPUGNED PENALTY WAS LEVIED , HAS BEEN DELETED BY THE TRIBUNAL IN THE QUANTUM ASSESSMENT PROCEEDINGS , T HE LD. CIT(A) DELETED THE PENALTY LEVIED ON THOSE ADDITIONS. 3. THE LD. DR DID NOT CONTROVERT THE ABOVE S UBMISSIONS MADE BY THE LD. C O UNSEL OF THE ASSESSEE. 4. SINCE THE ADDITIONS ON WHICH THE PENALTY WAS LEVIED HAVE BEEN DELETED BY THE TRIBUNAL, THE IMPUGNED PENALTY ORDER DOES NOT HAVE LEGS TO STAND ON ITS OWN . HENCE THE LD CIT(A) WAS JUSTIFIED IN CANCELLING THE PENALTY FOR THE REASON S MENTIONED ABOVE. 5 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED PRONOUNCED ACCORDINGLY ON 6TH JULY , 2015. 6TH JULY , 2015 SD SD ( / AMIT SHUKLA ) ( . . / B.R. BASKARAN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI: 6 TH JULY ,2015 . ITA NO. 639 / MUM/20 1 4 3 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMB AI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI