M/S. THORESEN CHARTERING SINGAPORE PTE. LTD, MUMBAI V. THE DY DIT (INT TAX)- 2(1),

ITA 6913/MUM/2007

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3988 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: L1
• Next Hearing Date: 22-06-2010
• Assessment Year: 1998-1999
• Appeal Filed On: 19-11-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDER SINGH
• Assessee Lawyers: JITESH JHANKH ARIA
• Keywords: Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI. BEFORE SHRI R.V.EASWAR, PRESIDENT AND SHRI J.SUDHA KAR REDDY, AM I.T.A. NOS. 6913 TO 6916/MUM/2007 (ASSESSMENT YEARS: 1998-99, 1999-00, 20 00-01, 2002-03) M/S. THORESEN CHARTERING SINGAPORE PTE. LTD. C/O. J.M. BAXI & CO., 16, BANK STREET, P.O.BOX NO.731 FORT, MUMBAI-400 001. PAN:AABCT7136J VS. THE DEPUTY DIRECTOR OF INCOME TAX, (INTL. TAX)2-1, MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. JITESH JHANKHARIA RESPONDENT BY : MR. NARENDER SINGH, CIT (DR) O R D E R PER R.V.EASWAR, PRESIDENT: THESE ARE APPEALS BY THE ASSESSEE DIRECTED AGAINST PENALTIES IMPOSED UNDER S ECTION 271(1)(C) OF THE INCOME TAX ACT AS FOLLOWS:- ASSESSMENT YEAR PENALTY RS. 1998-99 10,92,960 1999-2000 3,71,569 2000-01 1,43,237 2002-03 11,67,713 2. AT THE TIME OF THE HEARING, IT WAS POINTED OUT O N BEHALF OF THE ASSESSEE THAT PENALTIES HAVE BEEN LEVIED CONSEQ UENT TO THE REASSESSMENT ORDERS PASSED BY THE ASSESSING OFFICER DENYING THE BENEFIT OF ARTICLE 8 OF THE DOUBLE TAXATION AVO IDANCE AGREEMENT BETWEEN INDIA AND SINGAPORE AND THAT ON A PPEALS FILED BY THE ASSESSEE TO THE TRIBUNAL, THE REASSESS MENT ORDERS WERE QUASHED AS BEING WITHOUT JURISDICTION. IT IS F URTHER POINTED OUT THAT THE ORDER OF THE TRIBUNAL QUASHING THE REA SSESSMENTS HAS BEEN UPHELD BY THE HONBLE BOMBAY HIGH COURT VI DE JUDGEMENT DATED 8 TH JANUARY, 2010. COPIES OF THE ORDER OF THE TRIBUNAL DATED 11 TH JUNE, 2008 IN ITA NOS. 1991 TO 1993 AND ITA NO.6913 TO 6916/07 2 2867/MUM/2006 AND THE C.O. NOS. 283 TO 285 & 302/MUM/2006 AS WELL AS THE ORDER OF THE HIGH COUR T HAVE BEEN FILED BEFORE US. WE FIND THEREFROM THAT THE T RIBUNAL QUASHED THE REASSESSMENTS AS BEING WITHOUT JURISDIC TION AND THE APPEAL FILED BY THE DEPARTMENT TO THE HONBLE BOMBAY HIGH COURT WAS NOT ADMITTED ON THE GROUND THAT THEY DID NOT RAISE ANY SUBSTANTIAL QUESTION OF LAW. THE ORDER OF THE TRIBUNAL HAS THUS ATTAINED FINALITY. SINCE THE PENALTIES HAVE BE EN LEVIED+ CONSEQUENT TO THE REASSESSMENTS AND SINCE THE REASS ESSMENTS THEMSELVES HAVE BEEN QUASHED, THE PENALTIES HAVE NO LEG TO STAND. THEY ARE ACCORDINGLY CANCELLED AND THE APPE ALS OF THE ASSESSEE ARE ALLOWED WITH NO ORDER AS TO COSTS. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF OCTOBER, 2010. SD/- (J.SUDHAKAR REDDY) SD/- ( R.V.EASWAR ) ACCOUNTANT MEMBER PRESIDENT MUMBAI, DATED 27 TH OCTOBER, 2010. SOMU COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE DIT(INTL TAXATION)MUMBAI. 4. THE CIT(A)-XXXI, MUMBAI 5. THE DR L BENCH. /TRUE COPY/ BY ORDE R ASSTT. REGISTRAR, I.T.A.T, MUMBAI