LONGULF TRADING (INDIA) P. LTD, MUMBAI V. DCIT 8(2), MUMBAI

ITA 6431/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2307 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-09-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 31-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAMACHANDRAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, J M AND SRI RAMIT KOCHAR , AM ITA NO . 6431/MUM/2013 (A.Y: 2002 - 03 ) LONGULF TRADING (INDIA) PVT. LTD., TIMES SQUARE, A WING, 5 TH FLOOR, UNIT 1B, MAROL, ANDHERI KURLA ROAD, ANDHE RI (EAST), MUMBAI - 59 PAN: AAACL 075D VS. THE DY . COMMISSIONER OF INCOME TAX, CIRCLE 2(2), MUMBAI APPELLANT .. RESPONDENT APPELLANT BY .. SHRI SANJAY PARIKH, AR RESPONDENT BY .. SHRI A. RAMACHANDRAN , DR DATE OF HEARING .. 20 - 10 - 2016 DATE OF PRO NOUNCEMENT .. 20 - 10 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE ASSESSEE IS ARISING OU T OF THE ORDER OF THE CIT - (A) - 4 1 , MUMBAI IN APPEAL NO. CIT (A) - 17 / IT - 2 1 / 20 11 - 12 DATE D 23 - 08 - 2013 . ASSESSMENT WAS FRAMED BY THE D C I T , CIRCLE - 2(2) , MUMBA I FOR THE ASSESSMENT YEAR 2002 - 03 VIDE HIS ORDER DATED 28 - 03 - 2005 U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) . P ENALTY U/S 271 (1) (C ) OF THE ACT WAS LEVIED BY THE D CIT - 8(2) , MUMBAI VIDE HIS ORDER DATED 25 - 03 - 2011. 2. THE ONLY ISSUE I N THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT (A) CONFIRMING LEVY OF PENALTY U/S 271 (1) OF THE ACT. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE QUANTUM APPEAL ON WHICH PENALTY WAS LEVIED WAS CHALLENGED BY TH E ASSESSEE BEFORE THE TRIBUNAL IN ITA NO.2528/MUM/2010 AND THE TRIBUNAL VIDE ORDER DATED 02 - 03 - 2016 HAS ALLOWED THE APPEAL BY DELETING THE DISPUTED ADDITION ON WHICH PENALTY WAS LEVIED. IN VIEW OF THIS, HE REQUESTED THAT PENALTY LEVIED ON THE ASSESSEE BE D ELETED. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. ON PERUSAL OF RECORDS , WE FIND THAT THE QUANTUM ADDITION HAS BEEN MADE BY THE AO ON ACCOUNT OF FREIGHT PAID (INLAND WATERWAYS ITA NO. 6431 /MUM/20 1 3 2 CHARGES) AMOUNTING TO R S. 6,67,802 / - TO IRAQ INLAND WATERWAYS AUTHORITY ON THE BASIS OF ALLEGATION IN THE VOL C KAR COMMITTEE REPORT . THIS ADDITION HAS BEEN DELETED BY THE TRIBUNAL IN ITA NO. 2528/MUM/2010 ORDER DATED 02 - 03 - 2016 ON THIS ISSUE. WE ALSO FIND THAT THE PENALTY UNDER S ECTION 271 (1) (C) OF THE ACT WAS LEVIED ON THIS ISSUE BY THE AO. HENCE, THE ORDERS OF THE AUTHORITIES BELOW LEVYING PENALTY ON THE ASSESSEE DO NOT SURVIVE. IN VIEW OF THIS, WE DELETE THE PENALTY AND ALLOW THE APPEAL OF THE ASSESSEE. 4 . IN THE RESULT, TH E APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 - 10 - 2016 . BY ORDER, ASSISTANT REGISTRAR ITAT, MUMBAI SD/ - (RAMIT KOCHAR ) ACCONTANT MEMBER MUMBAI, DATED: 20 - 10 - 2016 LAKSHMIKANTA DEKA/SR.PS SD/ - ( MAHAVIR SINGH ) JUDICIAL MEMBER COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT (A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE C OPY// SR. NO. PARTICULARS DATE INITIALS MEMBE R CONCERNED 1 DICTATION GIVEN ON 20/10/16 LK DEKA JM 2 DRAFT PLACED BEFORE AUTHOR 24/10/16 - 26/10/16 3 DRAFT PROPOSED/PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR.PS 6 KEPT F OR PRONOUNCEMENT ON 7 FILE SENT TO THE BENCH CLERK 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER