ITO 5(2)(2), MUMBAI V. JEWELLERRY SOLUTIONS INTERNATIONAL LTD, MUMBAI

ITA 6421/MUM/2010

• Counselvise Citation: 642119914 RSA 2010
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 01-02-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 31-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARTHASARTLI NAIK
• Assessee Lawyers: HIRAWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, I , MUMBAI BEFORE SHRI R.S.SAYAL (A.M) AND SHRI N.V. VASUDEVAN (J.M) ITA NO. 6421/M/2010 (ASSESSMENT YEAR: 2004-2005) I.T.O. 5(2)(2) R.NO.567, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400020. VS. JEWELLERY SOLUTIONS INTERNATIONAL LTD. 15, NAGINDAS MANSION, 61-B, J.S.S. ROAD, OPERA HOUSE, MUMBAI 400 004. PAN : AAACJ8708R APPELLANT RESPONDENT APPELLANT BY SHRI PARTHASARTLI NAIK (DR) RESPONDENT BY SHRI HIRAWAL (AR) O R D E R PER N.V. VASUDEVAN (J.M.): THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED 23.06.2010 OF LD CIT(A) - 9, MUMBAI RELATING TO A.Y. 2004- 05. 2. IN THIS APPEAL THE REVENUE HAS CHALLENGED THE OR DER OF THE LD CIT(A) WHEREBY THE CIT(A) CANCELLED THE PENALTY IMP OSED ON THE ASSESSEE BY THE AO U/S.271(1)(C) OF THE ACT. PENA LTY WAS IMPOSED ON THE ASSESSEE BY THE AO FOR THE REASON THAT WHILE CLAIMING DEDUCTION U/S.10B OF THE ACT, THE ASSESSEE HAD CLAI MED THAT INTEREST INCOME OF RS.25,59,740/- SHOULD BE CONSIDE RED AS PROFITS ELIGIBLE FOR DEDUCTION U/S.10B OF THE ACT. THE AB OVE CLAIM WAS REJECTED BY THE AO AND IN RESPECT OF THE SAME PENAL TY WAS IMPOSED ON THE ASSESSEE BY THE AO HOLDING THAT THE ASSESSEE FURNISHED INCORRECT PARTICULARS OF INCOME. ITA NO. 6421/M/2010 2 3. THE CIT(A) HOWEVER, CANCELLED THE PENALTY HOLDIN G THAT THE CLAIM OF THE ASSESSEE WAS BONAFIDE AND THE EXPLANATION OF FERED BY THE ASSESSEE WAS ALSO BONAFIDE. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENUE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING IT WAS BOUGHT ON NOTICE T HAT ITA NO.6351/M/07 FOR A.Y.2004-05 THE TRIBUNAL HAS HELD THAT INTEREST INCOME IS ALSO TO BE TAKEN AS INCOME WHICH IS ELIGI BLE FOR DEDUCTION U/S.10B OF THE ACT. THE ORDER OF THE TRIB UNAL DATED 20.04.2011 WAS ALSO FILED BEFORE US. IN VIEW OF T HE FACT THAT ADDITION IN RESPECT OF WHICH PENALTY WAS IMPOSED HA S ALREADY BEEN DELETED BY THE TRIBUNAL THE VERY BASIS ON WHICH PEN ALTY WAS IMPOSED NO LONGER SURVIVES. WE ARE THEREFORE, UPH OLD THE ORDER OF THE CIT(A) AND DISMISS THE APPEAL BY THE REVENUE. 5. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH FEBRUARY, 2012. SD/- (R.S.SYAL) ACCOUNTANT MEMBER SD/- (N.V. VASUDEVAN) JUDICIAL MEMBER MUMBAI, DATED 08.02.2012 JANHAVI COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT CONCERNED 4. CIT(A) CONCERNED 5. DR CONCERNED BENCH 6. GUARD FILE. BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI