DCIT 2(2), MUMBAI V. KNIGHT FRANK INDIA P.LTD, MUMBAI

ITA 7368/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4263 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 13-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN
• Section: 143(3)

Judgement Text

, INCOME TAX APPELLATE TRIBUNAL,MUMBAI- A,BENCH , , BEFORE S/SH. JOGINDER SINGH,JUDICIAL MEMBER & RAJENDRA,ACCOUNTANT MEMBER /.ITA/7368/MUM/2013, /ASSESSMENT YEAR :2009-10 DY. CIT-2(22) ROOM NO.545, AAYAKAR BHAVAN MUMBAI-400 020. VS M/S. KNIGHT FRANK (INDIA) PVT. LTD., PAVILLE HOUSE, NEAR TWIN TOWERS OFF, VEER SAVARKAR MARG, PRABHADEVI MUMBAI-400 025. PAN:AAACK 1544 J ( / APPELLANT) ( / RESPONDENT) /ASSESSEE BY :SHRI AMEY WAGLE / REVENUE BY :SHRI ASGHAR ZAIN / DATE OF HEARING : 01-12- 2015 / DATE OF PRONOUNCEMENT : 01.01.2016 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DT.30.09.2013 OF CIT(A)-5,MUM BAI,THE ASSESSING OFFICER(AO) HAS FILED THE PRESENT APPEAL. 2. ASSESSEE-COMPANY,ENGAGED IN THE BUSINESS OF PROPERT Y MANAGEMENT AND CONSULTANCY,FILED ITS RETURN OF INCOME ON 14.11.2007,DECLARING INCOME AT RS.9.32 CRORES.THE AO COMPLETED THE ASSESSMENT ON 29.12.2009,U/S. 143(3) OF THE ACT DET ERMINING THE INCOME OF THE ASSESSEE AT RS.10.03 CRORES.DURING THE ASSESSMENT PROCEEDINGS,T HE AO MADE ADDITIONS ON ACCOUNT OF SERVICE TAX (AS PART OF TRADING RECEIPT)AS PER PROV ISIONS OF SECTION 145A OF RS.69.20 LAKHS AND ADDITION OF RS.1.20 LAKHS U/S.41(1)OF THE ACT. AGGR IEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTH ORITY(FAA),WHO CONFIRMED THE ADDITION TO THE TUNE OF RS.22,00,808/-AND RS.1.20 LAKHS UNDER T HE HEADS SERVICE TAX AND U/S.41(1) RESPECTIVELY.FOLLOWING THE ORDER OF THE FAA,THE AO IMPOSED PENALTY OF RS.6.96 LAKHS IN RESPECT OF THE ADDITIONS SUSTAINED BY THE HIM,U/S.2 71(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 3 .DURING THE APPELLATE PROCEEDINGS,BEFORE THE FAA,IT WAS ARGUED THAT THE TRIBUNAL HAD,VIDE ITS ORDER DATED 10.07.2013,(ITA/2021/MUM/2011),DELE TED THE ADDITIONS ON ACCOUNT OF SERVICE TAX AND HAD SET ASIDE THE ISSUE OF ADDITION MADE U/ S.41(1)OF THE ACT TO THE FILE OF THE AO.AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE,HE DELE TED THE PENALTY IMPOSED BY THE AO. 4 .BEFORE US,THE DEPARTMENTAL REPRESENTATIVE(DR)STATE D THE MATTER COULD BE DECIDED ON MERITS.AUTHORISED REPRESENTATIVE(AR) REFERRED TO TH E ORDER OF THE TRIBUNAL DATED 10.07.2013. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL BEFORE US.WE FIND THAT THE TRIBUNAL IN ITS ORDER AT PARAGRAPH NO.12 HAD DELETE D THE ADDITION MADE WITH REGARD TO SERVICE TAX.IT HAD ALSO SENT BACK THE MATTER OF ADDITION MA DE U/S.41(1)OF THE ACT TO THE AO.IN THESE CIRCUMSTANCES,WE ARE OF THE OPINION THAT PENALTY OR DER WOULD NOT SURVIVE.THEREFORE, CONFIRMING THE ORDER OF THE FAA,WE DECIDE THE EFFEC TIVE GROUND OF APPEAL AGAINST THE AO. 7368/13KNIGHT FRANK-07-08 2 AS A RESULT, APP EAL FILED BY THE AO STANDS DISMISSED. . ORDER P RONOUNCED IN THE OPEN COURT ON 1 ST JANUARY, 2016. 01 , 2016 SD/- SD/- ( / JOGINDER SINGH) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /MUMBAI, /DATE 01.01.2016 . . . .. . JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.