SKM STEELS LTD, MUMBAI V. DCIT RG 5(3), MUMBAI

ITA 6904/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8965 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2005-2006
• Appeal Filed On: 12-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSHDR
• Assessee Lawyers: RAHESH CHAMARIA
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI , BEFORE SHRI RAJENDRA, A.M. AND SHRI PAWAN SINGH,J.M . ./ ITA NO.6904/MUM/2014 / ASSESSMENT YEAR: 2005-06 SKM STEELS LTD. GAJANAN DARSHAN, 30-CP TANK RD. MUMBAI-400 004. PAN: AADCS 7801 F VS. DCIT-RANGE-5(3) AAYAKAR BHAVAN, 5 TH FLOOR,MK RD. MUMBAI-400 020. ( / // / APPELLANT ) ( / RESPONDENT ) REVENUE BY: MS. BEENA SANTOSH-DR ASSESSEE BY: SHRI RAHESH CHAMARIA / // / DATE OF HEARING: 11.01.2017 / DATE OF PRONOUNCEMENT: 11.01.2017 , ,, , 1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) , / PER RAJENDRA A.M. - CHALLENGING THE ORDER,DATED 11/08/2014,OF THE CIT ( A)-9,MUMBAI THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE-COMPANY,ENGAGED IN THE BUSI NESS OF TRADING AND DEALING IN FERROUS METALS,FILED ITS RETURN OF INCOME ON 24/10/2005,DEC LARING TOTAL INCOME AT RS. 5.04 CRORES.THE ASSESSING OFFICER (AO) COMPLETED THE ASSESSMENT U/S .143 (3)R.W.S. 147 OF THE ACT,ON 13/12/ 2010,DETERMINING ITS INCOME AT RS. 6.09 CRORES.WHIL E FINALISING THE ASSESSMENT, THE AO MADE ADDITION OF RS. 1.05 CRORES UNDER THE HEAD UNEXPLAI NED CASH CREDIT, INVOKING THE PROVISIONS OF SECTION 68 OF THE ACT.AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE FILED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY (FAA)WHO CONFIRMED TH E ADDITION MADE BY THE AO. 2. THE AO ISSUED A NOTICE TO THE ASSESSEE FOR LIVING P ENALTY U/S. 271(1)(C) OF THE ACT.AFTER CONSID -ERING THE SUBMISSION OF THE ASSESSEE,HE LEV IED A PENALTY OF RS. 38.42 LAKHS,INVOKING THE PROVISIONS OF SECTION 271(1)(C) OF THE ACT, FOR FURNISHING INACCURATE PARTICULARS OF INCOME FOR THE YEAR UNDER CONSIDERATION.THE ASSESSEE CHALL ENGED THE PENALTY ORDER BEFORE THE FAA,WHO CONFIRMED THE ORDER OF THE AO. 3. DURING THE COURSE OF HEARING BEFORE US,THE AUTHORIS ED REPRESENTATIVE (AR) BROUGHT OVER NOTICE THAT THE TRIBUNAL,VIDE ITS ORDER DATED 07/08 /2015(ITA/6918/MUM/2011,AY.2005- 06)HAD RESTORED BACK THE ISSUE TO THE FILE OF THE A O FOR FRESH ADJUDICATION, WHILE DECIDING THE 6904/M/14-SKM STEELS 2 QUANTUM APPEAL. THE DEPARTMENTAL REPRESENTATIVE (DR )LEFT THE ISSUE TO THE DISCRETION OF THE BENCH. 3.1. WE FIND THAT IN HIS ORDER DATED 07/08/2015 (SUPRA), THE TRIBUNAL HAD DIRECTED THE AO TO DECIDE THE MATTER AFRESH AFTER PROVIDING AN OPPORTU NITY OF HEARING TO THE ASSESSEE. IN THESE CIRCUMSTANCES, WE ARE OF THE OPINION THAT PENALTY O RDER PASSED BY THE AO AND CONFIRMED BY THE FAA WOULD NOT SURVIVE.WE HOLD THAT THE AO WOULD BE FREE TO DECIDE THE ISSUE OF LEVYING/NOT LEVYING PENALTY, WHILE PASSING THE ORDE R IN PURSUANCE OF THE DIRECTIONS OF THE TRIBUNAL.EFFECTIVE GROUND OF APPEAL IS DECIDED IN F AVOUR OF THE ASSESSEE, IN PART. AS A RESULT, APPEAL FILED BY THE ASSESSEE STANDS PA RTLY ALLOWED. !' . ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH , JANUARY 2017. # $ % 11 , 2017 SD/- SD/- ( &'! /PAWAN SINGH) ( (#) / RAJENDRA) # '* / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; % DATED : 11.01.2017 . JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR E BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.