Thermax Limited, Pune V. Assistant Commissioner of Income tax, Pune

ITA 678/PUN/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8275 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-09-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 22-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISE OUT OF S PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NOS.678 & 679/PUN/2017 / ASSESSMENT YEARS : 2006-07 & 2008-09 THERMAX LIMITED, 14, MUMBAI PUNE ROAD, WAKDEWADI, PUNE 411 003 PAN : AAACT3910D VS. ACIT, CIRCLE-10, PUNE APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THESE TWO APPEALS BY THE ASSESSEE ARISE OUT OF THE ORDE RS PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) RELA TING TO THE ASSESSMENT YEARS 2006-07 & 2008-09 CONFIRMING PENALTY U/S.271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALS O CALLED THE ACT) IN RESPECT OF DISALLOWANCE OF COMMISSION OF RS.45,18,200/- FOR THE A.Y. 2006-07 AND RS.1,15,00,6 53/- FOR THE A.Y. 2008-09. ASSESSEE BY SHRI SANJAY BHAVE REVENUE BY SHRI S.B. PRASAD DATE OF HEARING 26-09-2019 DATE OF PRONOUNCEMENT 27-09-2019 ITA NO.678 & 679/PUN/2017 THERMAX LIMITED 2 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RE LEVANT MATERIAL ON RECORD. THE TRIBUNAL IN ITS ORDERS PASSED IN QU ANTUM PROCEEDINGS FOR THE YEARS UNDER CONSIDERATION ON 13-09-2 019 (ITA NOS. 509 AND 511/PUN/2017) HAS REMITTED THE MATTER OF CONFIRMATION OF DISALLOWANCE OF COMMISSION TO THE FILE OF ASS ESSING OFFICER WITH A DIRECTION TO DECIDE IT AFRESH IN THE LIGHT OF CER TAIN DIRECTIONS. SINCE THE MATTER IN QUANTUM PROCEEDINGS HAS BEEN RESTORED TO THE FILE OF THE ASSESSING OFFICER, WE ARE OF THE CONSIDERED OPINION THAT IT WOULD BE IN THE FITNESS OF THINGS IF THE MATTER CONCERNING THE PENALTY ON SUCH AMOUNTS IS ALSO SENT BA CK TO BE DECIDED IN CONFORMITY WITH THE VIEW TAKEN BY THE ASSESSIN G OFFICER IN THE PROCEEDINGS PURSUANT TO THE DIRECTIONS GIVEN B Y THE TRIBUNAL. WE ORDER ACCORDINGLY. NEEDLESS TO SAY, THE ASSE SSEE WILL BE ALLOWED A REASONABLE OPPORTUNITY OF HEARING IN THIS REGARD . OUR VIEW IN RESTORING THE PENALTY TO THE AO IS FORTIFIED BY THE JUDGM ENT OF THE HONBLE SUPREME COURT IN THE CASE OF MOHD. MOHATRAM FAROOQUI VS. CIT (SC) 2010-TIOL-23-SC-IT IN WHICH IT HAS BEEN HELD THAT IF ADDITION IS RESTORED TO THE AO, THEN PENALTY SHOULD ALSO BE RESTORED. THE HONBLE DELHI HIGH COURT IN SANJAY GUPTA VS. CIT (2014) 366 ITR 18 (DEL) HAS ALSO HELD THAT WHERE THE QUANTUM HAS BEEN REMANDED TO THE AO, THE QUESTION OF PENALTY ON ACCOU NT OF THE ITA NO.678 & 679/PUN/2017 THERMAX LIMITED 3 SAID AMOUNT BEING TREATED AS UNDISCLOSED INCOME, SHOULD ALSO BE REMANDED TO THE AO. 3. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 27 TH SEPTEMBER, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-6, PUNE 4. 5. 6. THE PR.CIT-V, PUNE , , / DR A, ITAT, PUNE; / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE ITA NO.678 & 679/PUN/2017 THERMAX LIMITED 4 DATE 1. DRAFT DICTATED ON 26-09-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27-09-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *