VISCUS INFOTECH LIMITED, INDORE V. Income Tax officer 4(3), INORE

ITA 708/Ind/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8430 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Assessee Lawyers: ANIL KHANDELWAL
• Keywords: Wrong claim; Bonafide mistake
• Section: 271(1)(c); 143(3); 10B; 148

Judgement Text

[ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.708/IND/2017 ASSESSMENT YEAR: 2009-10 M/S. VISCUS INFOTECH LIMITED INDORE / VS. ITO, 4(3) INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. AABCV1527D APPELLANT BY SHRI ANIL KHANDELWAL, A.R. RESPONDENT BY SHRI R.P. MOURYA, SR. D.R. DATE OF HEARING: 21.12.2018 DATE OF PRONOUNCEMENT: 02.01.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE PERTAINING TO THE ASSESSMENT YEAR 2009-10 IS AGAINST ORDER OF THE CIT(A)- II, INDORE DATED 18.9.2017. THE ASSESSEE HAS RAISED FOLLOW ING GROUNDS OF APPEAL: [ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) ERRED IN CONFIRMING THE PENALTY U/S 271(1)(C) OF THE ACT. 2. APPELLANT RESERVES RIGHT TO ADD, ALTER OR AMEND ANY OF THE GROUNDS OF THE APPEAL. 2. THE ONLY EFFECTIVE GROUND IS AGAINST CONFIRMING TH E PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THE FACTS GIVING RI SE TO THE PRESENT APPEAL ARE THAT CASE OF THE ASSESSEE WAS REOPENED AND THE ASSESSMENT U/S 148 R.W.S. 143(3) OF THE ACT W AS FRAMED VIDE ORDER DATED 16.2.2015. WHILE FRAMING THE ASSESSMENT, THE A.O. DISALLOWED CLAIM OF DEDUCTION U/S 10B OF THE ACT AND INITIATED PENALTY U/S 271(1)(C) OF THE ACT. SUBSEQUENTLY, PENALTY OF RS.3,44,995/- WAS IMPOS ED. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BE FORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS CONFIRMED THE PENALTY. NOW THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SYNOPSIS. THE SUBMISSIONS OF THE ASSESSEE ARE AS UNDE R: [ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] 3 [ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] 4 3. PER CONTRA, LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED ORDER OF THE LD. CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS THE CASE OF THE ASSES SEE THAT THE MISTAKE WAS BONAFIDE. HE SUBMITTED THAT DUE TO AMENDMENT IN LAW, THE DEDUCTION U/S 10B OF THE ACT W AS WITHDRAWN BY THE FINANCE ACT, 2007 W.E.F. 1.4.2008. THE RELIANCE IS PLACED ON THE JUDGEMENT OF THE HON'BLE DE LHI HIGH COUIRT RENDERED IN THE CASE OF CIT DELHI-2 VS. COMPRO TECHNOLOGIES P. LTD. (2015) 55 TAXMANN.COM 180 (DEL) AND THE JUDGEMENT OF THE HON'BLE SUPREME COURT IN THE C ASE OF PRICE WATERHOUSE COOPERS PVT. LTD. VS. CIT (2012) 34 8 ITR 306 (SC). THE AUTHORITIES BELOW HAVE NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE ON THE GROUND THAT IT WAS ON LY WHEN THE REVENUE POINTED OUT ABOUT WRONG CLAIM OF DEDUCTION U/S 10B OF THE ACT. THE ASSESSEE OFFERED IT FOR [ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] 5 TAXATION. IT IS NOT DISPUTED THAT THE DEDUCTION WAS WITHDRAWN BY AN AMENDMENT IN LAW W.E.F. 1.4.2008. U NDER THESE FACTS, MORE PARTICULARLY THAT ASSESSEE HAS BEEN ALLOWED DEDUCTION IN EARLIER YEARS, WE FIND FORCE INTO THE CONTENTION OF THE ASSESSEE THAT DUE TO BONAFIDE MISTAKE , CLAIM WAS MADE. THEREFORE, RESPECTFULLY FOLLOWING TH E JUDGEMENT OF THE HON'BLE APEX COURT RENDERED IN THE CASE OF PRICE WATERHOUSE COOPERS PVT. LTD. VS. CIT (SUPRA), W E DIRECT THE A.O. TO DELETE THIS PENALTY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 02 . 01.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 02/01/2019 VG/SPS [ITA 708/IND/2017] [M/S. VISCUS INFOTECH LIMITED, INDORE] 6 COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE