DCIT CEN CIR 10, MUMBAI V. PRUDENTIAL LEASING LTD, MUMBAI

ITA 7202/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2429 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 04-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 10-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P MEENADR
• Keywords: Tax effect

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.7202/MUM/2013 ASSESSMENT YEAR- 2009-10 DCIT, CENTRAL CIRCLE-10, ROOM NO.802, 8 TH FLOOR, OLD CGO ANNEXE BLDG, M.K. ROAD, MUMBAI-400020 / VS. M/S PRUDENTIAL LEASING LIMITED, 2 ND FLOOR, REHMAN BLDG, 24, VEER NARIMAN ROAD, FORT, MUMBAI-400001 ( / REVENUE) ( ! /ASSESSEE) PAN. NO. AAACP3118K / REVENUE BY SHRI O.P. MEENA-DR ! / ASSESSEE BY MS. MRUGAKSHI JOSHI ' # $ ! % / DATE OF HEARING : 16/11/2015 $ ! % / DATE OF ORDER: 23/11/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 23/10/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED BY THE DEPARTMENT PERTAINS T O DELETING THE PENALTY OF RS.9,05,267/- IMPOSED U/S 2 71(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) B Y PLACING M/S PRUDENTIAL LEASING LIMITED ITA NO.7202/MUM/2013 2 RELIANCE UPON THE DECISION FROM HONBLE APEX COURT IN RELIANCE PETRO PRODUCTS LTD. 322 ITR 158 (SC). 2. DURING HEARING OF THIS APPEAL, THE LD. DR, SHRI O.P. MEENA, ADVANCED ARGUMENTS WHICH ARE IDENTICAL TO TH E GROUND RAISED. ON THE OTHER HAND, MS. MRUGAKSHI JO SHI, LD. COUNSEL FOR THE ASSESSEE, DEFENDED THE CONCLUSION A RRIVED AT IN THE IMPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE T HAT THE ADDITION WAS MADE BY THE LD. ASSESSING OFFICER ON T HE GROUND THAT THE EXPENSES, INCURRED BY THE ASSESSEE, ARE NO T ALLOWABLE, AS NO ACTIVE BUSINESS WAS CARRIED OUT BY THE ASSESSEE AND ONLY INCOME EARNED BY THE ASSESSEE WAS IN THE NATURE OF DIVIDEND INCOME WHICH IS EXEMPT. HOWEVER, WE FIND THAT THERE IS NOT FINDING IN THE ASSESSMENT ORDER T HAT THE CLAIMED EXPENSES ARE BOGUS. THE ASSESSEE DID NOT CO NTEST THE QUANTUM ADDITION DUE TO TAX EFFECT BELOW MONITORY L IMIT. THE SHOPS OWNED BY THE ASSESSEE COMPANY ARE LIKELY TO I NCUR SOME EXPENSES FOR EARNING INCOME. NO SPECIFIC FINDI NG HAS BEEN RECORDED IN THE ASSESSMENT ORDER NOR ANY EVIDE NCE WAS BROUGHT ON RECORD SUGGESTING THAT THE CLAIMED EXPEN SES WERE BOGUS AND MERELY DISALLOWANCE WAS MADE ON THE PLEAT THAT NO ACTIVE BUSINESS IS CARRIED OUT BY THE ASSESSEE. WITHOUT GOING IN TO MUCH DELIBERATION AND IN THE LIGHT OF UNCONTROVERTED FINDING IN THE IMPUGNED ORDER, FOLLO WING THE DECISION FROM HONBLE APEX COURT IN RELIANCE PETRO PRODUCTS, M/S PRUDENTIAL LEASING LIMITED ITA NO.7202/MUM/2013 3 WE AFFIRM THE STAND OF THE LD. COMMISSIONER OF INCO ME TAX (APPEALS). THE APPEAL OF THE REVENUE, IS, THEREFORE DISMISSED. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 16/11/2015. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' # MUMBAI; ' DATED : 23/11/2015 F| P.S/. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / ' 0! ( )* ) / THE CIT, MUMBAI. 4. / / ' 0! / CIT(A)- , MUMBAI 5. 23 -! , / )*% ) 4 , ' # / DR, ITAT, MUMBAI 6. 5 6# / GUARD FILE. / BY ORDER, .2*! -! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' # / ITAT, MUMBAI.