MATTEL TOYS (INDIA) P LTD, MUMBAI V. ASST CIT CIR 6(3), MUMBAI

ITA 6390/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4271 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 10-07-2013
• Assessment Year: 2002-2003
• Appeal Filed On: 16-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRIRAM SESHADRI SHR
• Assessee Lawyers: CIRCUMSTANCES OF CA SE CITA IS
• Keywords: Transfer pricing
• Section: 32

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL K KK K BENCH, BENCH, BENCH, BENCH, MUMBAI MUMBAI MUMBAI MUMBAI . , ! ! ! ! '# '# '# '# , . BEFORE BEFORE BEFORE BEFORE SHRI SHRI SHRI SHRI B. R B. R B. R B. RAMAKOTAIAH AMAKOTAIAH AMAKOTAIAH AMAKOTAIAH, AM , AM , AM , AM, , , , & && & SHRI SHRI SHRI SHRI VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO, ,, , JM JMJM JM ./ I. I.I. I.T.A. NO. T.A. NO. T.A. NO. T.A. NO. 6390/MUM/2011 6390/MUM/2011 6390/MUM/2011 6390/MUM/2011 ( $% $% $% $% & & & & / ASSESSMENT YEAR: 2002-03) MATTEL TOYS (INDIA) PVT. LTD. 4 TH FLOOR, B WING, PHOENIX HOUSE, 462, SENAPATI BAPAT MARG, LOWER PAREL MUMBAI-400013 % % % % / VS. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 6(3), MUMBAI ' ./ #( ./ PAN/GIR NO. : AACCM2563P ( ') / APPELLANT APPELLANT APPELLANT APPELLANT) .. ( *+') / RESPONDENT RESPONDENT RESPONDENT RESPONDENT) , / O R D E R PER : '# , . . / VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 19.7.2011 OF COMMISSIONER OF INCOME TAX(APPEA LS) ARISING FROM PENALTY ORDER PASSED SECTION 271(1)(C) OF INCO ME TAX ACT FOR THE ASSESSMENT YEAR 2002-03. 2. THE ASSESSEE HAS RAISED THE VARIOUS GROUND IN TH IS APPEAL, HOWEVER THE ONLY ISSUE ARISES FOR OUR CONSIDERATION AND ADJUDICATION IS WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CA SE THE CIT(A) IS ') ') ') ') - - - - / APPELLANT BY : SHRI SRIRAM SESHADRI *+') *+') *+') *+') . .. . - - - - /RESPONDENT BY : SHRI AJIT KUMAR JAIN % % % % . .. . / / / / / DT. OF HE ARING : 10 TH JULY 2013 0& 0& 0& 0& . .. ./ / / / / DT.OFPRONOUNCEMENT: 10 TH JULY 2013 ITA NO.6390/M/2011 MATTEL TOYS (INDIA) PVT. LTD. . 2 JUSTIFIED IN CONFIRMING THE PENALTY OF ` 55,03,140/ - U/S 271(1)(C) OF THE INCOME TAX ACT. 3. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. IN THIS CASE THE P ENALTY HAS BEEN LEVIED IN RESPECT OF TWO DISALLOWANCES ONE U/S 32 O F THE ACT AND ANOTHER IS TRANSFER PRICING ADJUSTMENT OF IMPORT OF FINISHED GOODS FROM AES WHICH WERE CONFIRMED BY THE CIT(A). THE LD . AR OF THE ASSESSEE HAS BROUGHT TO OUR NOTICE THAT THE TRIBUNA L HAS SET ASIDE THE ISSUE OF BOTH ADDITIONS TO THE RECORD OF THE AO /TPO IN THE QUANTUM APPEAL VIDE ORDER DATED 12.6.2013 AND FILED THE COPY OF THE ORDER OF THE TRIBUNAL IN QUANTUM APPEAL. WE FIN D THAT BOTH THE ISSUE OF DISALLOWANCE ON WHICH THE PENALTY IN QUEST ION HAS BEEN LEVIED HAVE BEEN SET ASIDE BY THE TRIBUNAL TO THE R ECORD OF THE AO/TPO, THEREFORE, THE ADDITION ITSELF IS NO MORE E XISTED. ACCORDINGLY, THE PENALTY LEVIED ON THE ADDITION WHI CH HAS BEEN SET ASIDE TO THE RECORD OF THE AO/TPO WOULD NOT SURVIVE AND HENCE CANCELLED. HOWEVER, THE AO IS AT LIBERTY TO TAKE NE CESSARY ACTION AS PER THE OUTCOME OF THE REMAND PROCEEDING. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ITA NO.6390/M/2011 MATTEL TOYS (INDIA) PVT. LTD. . 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 0 TH JULY 2013 , . 0& 1 2%3 10 TH # . 4 SD/- SD/- ( . ) (B. RAMAKOTAIAH) ACCOUNTANT MEMBER ( '# ) $ (VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 10 TH JULY 2013 SUBODH COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI