M/S. TOLANI PVT. LTD, MUMBAI V. THE DY CIT CEN CIR-17,

ITA 7021/MUM/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1809 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 23-04-2010
• Assessment Year: 1997-1998
• Appeal Filed On: 26-11-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L K AGRAWAL
• Assessee Lawyers: S M AGRAWAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH J, MUMBAI BEFORE SHRI D.K. AGARWAL (JM) AND SHRI T.R. SOOD( AM) I.T.A. NO.7021/MUM/07 ASSESSMENT YEAR: 1997-98 M/S. TOLANI PVT. LTD., 10-A, BAKHTAWAR, NARIMAN POINT, MUMBAI 400 021. PAN: AAACT 4125 A VS. DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 17, MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.M. AGRAWAL RESPONDENT BY : SHRI L.K. AGRAWAL O R D E R PER T.R. SOOD, AM: IN THIS APPEAL BY THE ASSESSEE VARIOUS GROUNDS HAV E BEEN RAISED. BUT AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESS EE SUBMITTED THAT THE ONLY ISSUE INVOLVED IS REGARDING CONFIRMATION OF LEVY OF PENAL TY UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961. IT WAS FURTHER POINTED OUT TH AT THE ISSUES ON WHICH PENALTY HAS BEEN LEVIED HAVE ALREADY BEEN SET ASIDE BY THE TRIBUNAL TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION AND, THEREFOR E, THE PENALTY NEEDS TO BE CANCELLED. 2. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPR ESENTATIVE SUBMITTED THAT SINCE THE ISSUES ON QUANTUM APPEAL HAVE BEEN RESTOR ED BACK TO THE FILE OF THE ASSESSING OFFICER, THE PENALTY ISSUE COULD ALSO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE FIND THAT THE ISSUES IN THE QUANTUM APPEAL HAVE BEEN RESTORED TO THE FILE OF TH E ASSESSING OFFICER BY THE TRIBUNAL IN ITA NOS. 3287 AND 5239/MUM/2004. THERE FORE, IN THE INTEREST OF JUSTICE, THE ORDER OF THE CIT(A) CONFIRMING THE PENALTY IS A LSO SET ASIDE AND THE MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO CONSIDER THE PENALTY ONLY AFTER COMPLETION OF FRESH ASSESSMENT IF THE CI RCUMSTANCES JUSTIFY THE SAME. ITA NO.702/M/07 M/S TOLANI PVT. LTD. 2 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF APRIL, 2010. SD. SD. (D.K. AGARWAL) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI DATED THE 30 TH APRIL, 2010. KN/ COPY TO: 1. THE ASSESSEE 2. THE DCIT, CENTRAL CIR.17, MUMBAI 3. THE CIT, CENTRAL II, MUMBAI 4. THE CIT(A)-IV, MUMBAI 5. THE DR, J BENCH, MUMBAI BY ORDER /TRUE COPY/ ASST. REGISTRAR, ITAT, MUM BAI