CRAY VALLEY RESINS IND. P.LTD, NAVI MUMBAI V. ITO 10(3)(4), MUMBAI

ITA 6503/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8242 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-11-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 26-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDIP GOYAL
• Assessee Lawyers: RUTURAJ GURJAR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA NO. 6503/MUM/2011 (ASSESSMENT YEAR: 2006-07) M/S CRAY VALLEY RESINS (I) PVT. LTD. PLOT NO. D-43/1, TTC INDUSTRIAL AREA, MIDC, NERUAL, SHIRVANE VILLAGE, NAVI MUMBAI -400 706 PAN AAACC 6482 F VS. ITO 10(3)(4) AAYKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RUTURAJ GURJAR RESPONDENT BY : SHRI SANDIP GOYAL DATE OF HEARING: 19.11.2012 DATE OF PRONOUNCEMENT: 19.11.2012 O R D E R PER VIVEK VARMA, JM: THE INSTANT APPEAL IS FILED BY THE ASSESSEE, AGAINST THE ORDER OF CIT(A) 22, MUMBAI, DATED 26.07.2011. WHEREIN, THE CIT(A) HAS SUSTAINED THE LEVY OF PENALTY OF RS.10,14,150 U/S 271(1)(C) OF T HE INCOME TAX ACT, 1961. 2. THE SOLITARY ISSUE IS THAT THE LEVY OF PENALTY WAS HAD NO LAW AND SHOULD BE CANCELLED. 3. AT THE TIME OF HEARING BEFORE US, THE AR POINTED OUT T HAT IN QUANTUM APPEAL OF THE ASSESSEE THE COORDINATE BENCH IN ITA NO. ITA NO. 6503/MUM/2011 M/S CRAY VALLEY RESINS (I) PVT. LTD. 2 648/MUM/2010, HAS REVERSED THE ORDERS OF THE REVENUE AUTHORITY AND ALLOWED THE DEPRECIATION AS CLAIMED BY THE ASSESSEE, THERE BY ALLOWING THE APPEAL. THE AR, THEREFORE, SUBMITTED THAT SINCE THE IS SUE IN QUESTION HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE IN QU ANTUM, THE PENALTY, AS LEVIED AND SUSTAINED HAS NO LEGS TO STAND ON, AND THEREFORE, PENALTY SHOULD BE CANCELLED. 4. WE HAVE PERUSED THE ORDER OF THE COORDINATE BENCH IN THE ASSESSEE CASE IN ITA NO. 684/MUM/2010 AND FIND THAT DISA LLOWANCE OF DEPRECIATION, ON WHICH THE PENALTY HAD BEEN LEVIED HAS BE DELETED AND THE REVENUE AUTHORITY HAVE BEEN DIRECTED TO ALLOW THE D EPRECIATION, AS CLAIMED. 5. SINCE, THE BASIS OF PENALTY ITSELF HAS BEEN DELETED, THER EFORE, IN THESE CIRCUMSTANCES, PENALTY CANNOT BE SUSTAINED. 6. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DIR ECT THE AO TO CANCEL THE PENALTY. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 19/11/2012. SD/- ( RAJENDRA SINGH ) ACCOUTANT MEMBER SD/- ( VIVEK VARMA ) JUDICIAL MEMBER MUMBAI, DATE: 19/11/2012 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)- 22 , MUMBAI. 4) THE CIT 10, MUMBAI, 5) THE D.R. C BENCH, MUMBAI. ITA NO. 6503/MUM/2011 M/S CRAY VALLEY RESINS (I) PVT. LTD. 3 6) COPY TO GUARD FILE. BY ORDER ASSTT. REGISTRAR I.T.A.T., MUMBAI RASIKA