DCIT, CIRCLE-7(2)(2), MUMBAI V. M/S. MULLEN LINTAS PVT. LTD., MUMBAI

ITA 948/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5592 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 19-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVANEESH TIWARI
• Assessee Lawyers: PRAKASH JOTHWANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) , D BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI PAVAN KUMAR GADALE , JM ITA NO. 948 /MUM/ 20 19 ( ASSESSMENT YEAR : 2 005 - 0 6 ) DCIT, CIRCLE - 7(2)(2), MUMBAI ROOM NO.126B, FIRST F LOOR AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 VS. M/S. MULLEN LINTAS PVT. LTD., (FORMERLY KNOWN AS LINEN ADVERTISING& COMMUNICATIONS PVT. LTD., OR M/S. PICKLE ADVERTISING PVT. LTD., OR M/S. SSC & B LINTAS PVT. LTD., PHOENIX MILL COMPOUND, SENAPATI BAPA T MARG LOWER PAREL, MUMBAI 400 013 PAN/GIR NO. AABCS1752P (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI AVANEESH TIWARI ASSESSEE BY SHRI PRAKASH JOTHWANI DATE OF HEARING 24 / 09 /2020 DATE OF PRONOUNCEMENT 06 / 10 /2020 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO .948/MUM/2019 FOR A.Y. 2005 - 06 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 13, MUMBAI IN APPEAL NO. CIT(A) - 13/ITO - 7(1)(2)/77/2018 - 19 DATED 03/09/2018 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 . ITA NO . 948/MUM/2019 M/S. MULLEN LINTAS PVT. LTD., 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE PENALTY LEVIED IN THE SUM OF RS.1,19,65,748/ - U/S.271(1)(C) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT ASSESSEE WAS ORIGINALLY KNOWN AS M/S.SSC & B LINTAS P. LTD. AND THE NAME WAS SUBSEQUENTLY CHANGED TO M/S. PICKL E ADVERTISING P. LTD., THE ASSESSEE ONCE AGAIN CHANGED ITS NAME TO M/S. LINEN ADVERTISING AND COMMUNICATIONS PVT. LTD., SUBSEQUENTLY, THE ASSESSEE HAD AGAIN CHANGED ITS NAME TO M/S. MULLEN LINTAS P. LTD. THE RETURN OF INCOME FOR THE A.Y.2005 - 06 WAS FILED B Y THE ASSESSEE ON 28/10/2005 DECLARING TOTAL LOSS OF RS.4,63,89,950/ - AND ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT ON 27/12/2007 DETERMINING TOTAL INCOME AT RS.17,29,050/ - , WHEREIN AN ADDITION IN RESPECT OF UNDISCLOSED COMMISSION INCOME WAS MADE TO T HE EXTENT OF RS.3.27 CRORES. WE FIND THAT THE LD. AO HAD ALSO LEVIED PENALTY IN THE SUM OF RS.1,19,65,748/ - U/S.271(1)(C) OF THE ACT IN RESPECT OF THIS ADDITION. WE FIND THAT THE QUANTUM ADDITION OF RS.3.27 CRORES HAD BEEN DELETED BY THIS TRIBUNAL IN ITA NO.2216/MUM/2013 DATED 21/06/2017 WHICH WAS FOLLOWED BY THE LD. CIT(A) WHILE DELETING THE PENALTY IN THE INSTANT CASE. SINCE THE QUANTUM ADDITION HAS BEEN DELETED, THE PENALTY LEVIED ON SUCH ADDITION WOULD HAVE NO LEGS TO STAND. HENCE, WE DO NOT FIND ANY I NFIRMITY IN THE ORDER OF LD. CIT(A) DELETING THE PENALTY. ACCORDINGLY, THE GROUND RAISED BY THE REVENUE IS DISMISSED. ITA NO . 948/MUM/2019 M/S. MULLEN LINTAS PVT. LTD., 3 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 06 / 10 /2020 BY WAY OF PROPER MENTIONING IN THE NOTIC E BOARD. SD/ - ( PAV AN KUMAR GADALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 06 / 10 / 2020 KARUNA , SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) I TAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//