DCIT-1(1), MUMBAI V. M/S. BEEKAYLON INDUSTRIES LTD., MUMBAI

ITA 6492/MUM/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1632 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 07-11-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PITAMBAR DAS
• Keywords: Depreciation
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: MUMBAI BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SMT ASHAVIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO 6492/MUM/2008 (ASSESSMENT YEAR: 2004-05) DCIT -1(1), AAYAKAR BHAVAN, MUMBAI -400 020 VS M/S BEEKAYLON INDUSTRIES LTD, 10 JASVILLE, NEW MARINE LINES, MUMBAI -400 020 PAN: AAACB 0306 R APPELLANT RESPONDENT APPELLANT BY: SHRI RAKESH JOSHI RESPONDENT BY: SHRI PITAMBAR DAS ORDER PER PRAMOD KUMAR , ACCOUNTANT MEMBER 1. BY WAY OF THIS APPEAL, REVENUE HAS CHALLENGED CI T (A)S DELETION OF PENALTY OF RS 25,69,512/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2004-05. 2. LEARNED REPRESENTATIVES, HOWEVER, AGREE THAT THE QUANTUM DISALLOWANCE OF DEPRECIATION, IN RELATION TO WHICH IMPUGNED PENALTY WAS IMPOSED, HAS BEEN DELETED BY A CO-ORDINATE BENCH OF THIS TRIBUNAL. OUR ATTEN TION IS DRAWN TO ORDER DATED 26TH AUGUST 2008, SO DELETING THE QUANTUM DISALLOWANCE O F DEPRECIATION. 3. IN VIEW OF THE ABOVE DEVELOPMENT, THE VERY CAUSE OF ACTION FOR IMPOSITION OF PENALTY DOES NOT SURVIVE ANY LONGER. ONCE THE QUAN TUM DISALLOWANCE IS DELETED, THERE CANNOT BE ANY CONCEALMENT OF INCOME, AND ONCE THERE IS NO CONCEALMENT OF INCOME, THERE IS OBVIOUSLY NO OCCASION FOR IMPOSITI ON OF PENALTY ON ACCOUNT OF CONCEALMENT OF INCOME. 4. FOR THESE REASONS, WE APPROVE THE CONCLUSION ARR IVED AT BY THE CIT (A) AND DECLINE TO INTERFERE IN THE MATTER. M/S BEEKAYLON INDUSTRIES LTD 2 5. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 22ND DAY OF OCTOBER 2009. SD/- (ASHAVIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER MUMBAI, DATE: 22ND OCTOBER 2009 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)-I, MUMBAI. 4) THE CITI, MUMBAI. 5) THE D.R. B BENCH, ITAT, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR CHAVAN* I.T.A.T., MUMBAI M/S BEEKAYLON INDUSTRIES LTD 3 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 20.10.09 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 20.10.09 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS SR.PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS 7 FILE SENT TO THE BENCH CLERK SR.PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER