Deputy Commissioner of Income Tax (IT), Circle-1, Pune V. Faurecia Systems D'echappement, Pune

ITA 842/PUN/2022

AI Insights

The case involves two appeals by the Revenue against the order of the Commissioner of Income Tax (Appeals)-13, Pune, which pertained to the assessment years 2015-16 and 2016-17. The core issue was the deletion of penalties under section 271(1)(c) of the Income Tax Act, which were imposed by the Assessing Officer (AO) for alleged furnishing of inaccurate particulars of income regarding receipts from software maintenance services. The Tribunal had previously ruled in favor of the assessee for the earlier assessment years, determining that such income was not taxable in India. The Tribunal applied the same reasoning and precedent to dismiss the Revenue's appeals for the subsequent assessment years.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132955 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 23-11-2022
• Other Referred Cases: ITA No.306/PUN/2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.842 & 843/PUN/2022 धििाारण वर्ा / Assessment Years : 2015-16 & 2016-17 Deputy Commissioner of Income Tax (IT), Circle – 1, Pune ......अपीलार्थी / Appellant बिाम / V/s. M/s. Faurecia Systems D’echappement, Plot No. T-187, Pimpri Industrial Area (B.G. Block), Behind Bhosari Police Station, Bhosari, Pune-411026 PAN : AABCF7193F ......प्रत्यर्थी / Respondent Assessee by : Shri Siddhesh Chaugule & Shri Sanket Bora Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 25-01-2023 घोषणा की तारीख / Date of Pronouncement : 30-01-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : Both these two appeals by the Revenue against the common order dated 28-09-2022 passed by the Commissioner of Income Tax (Appeals)- 13, Pune [‘CIT(A)’] for assessment years 2015-16 and 2016-17. 2. Since, the issues raised in both the appeals are similar basing on the same identical facts, we proceed to hear both the appeals together and to pass a consolidated order for the sake of convenience. 2 ITA Nos. 842 & 843/PUN/2022, A.Ys. 2015-16 & 2016-17 3. First, we shall take up appeal in ITA No. 842/PUN/2022 for A.Y. 2015-16. 4. The only issue is to be decided is as to whether the CIT(A) justified in deleting the addition made by the AO u/s. 271(1)(c) of the Act. 5. We note that the AO imposed penalty u/s. 271(1)(c) of the Act on the charge of furnishing of inaccurate particulars of income in respect of receipts appearing in 26AS as software maintenance services as not taxable in India. The Tribunal in quantum appeal deleted the said addition made on account of software maintenance services by holding as not taxable. We find, considering said orders passed in quantum appeals, this Tribunal deleted the penalty imposed by the AO u/s. 271(1)(c) of the Act for A.Ys. 2013-14 and 2014-15 vide separate orders common dated 12-07- 2022. The relevant orders passed in A.Ys. 2013-14 and 2014-15 in assessee’s own case are placed on record by the ld. AR. The ld. DR did not dispute the same and no order contrary to the same brought on record. Both the parties conceded that there was no change in the facts and circumstances in A.Ys. 2013-14 and 2014-15 as that of facts on hand. On perusal of order dated 12-07-2022 in ITA No.306/PUN/2021 in assessee’s own case this Tribunal discussed the issue in detailed deleted the penalty imposed by the AO u/s. 271(1)(c) of the Act. Therefore, following the same, the penalty imposed by the AO as deleted by the CIT(A) is justified. Thus, the grounds raised by the Revenue fails and are dismissed. 6. In the result, the appeal of Revenue is dismissed. 3 ITA Nos. 842 & 843/PUN/2022, A.Ys. 2015-16 & 2016-17 ITA No. 843/PUN/2022, A.Y. 2016-17 7. We find that the issues raised in the appeal and the facts in ITA No. 843/PUN/2022 are identical to ITA No. 842/PUN/2022 except the variance in amount. Since, the facts in ITA No. 843/PUN/2022 are similar to ITA No. 842/PUN/2022, the findings given by us while deciding the appeal of Revenue in ITA No.842/PUN/2022 would mutatis mutandis apply to ITA No. 843/PUN/2022, as well. Accordingly, the appeal of Revenue is dismissed. 8. In the result, both the appeals of Revenue are dismissed. Order pronounced in the open court on 30 th January, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 30 th January, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-13, Pune 4. The Pr. CIT concerned. 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune