Income Tax Appellate Tribunal - Mumbai
Abn Amro Securities (I) P. Ltd, Mumbai vs Department Of Income Tax on 6 September, 2011
IN THE INCOME TAX APPELLATE TRIBUNAL,
"A" BENCH, MUMBAI.
Before Shri Pramod Kumar, Accountant Member
and Smt Asha Vijayraghavan, Judicial Member
I.T.A No.403/ Mum/2009
Assessment year: 2003-04
Income Tax Officer
Ward 3(1)(1), Mumbai 400 020 .................. Appellant
Vs
ABN Amro Securities India Pvt Ltd ..................... Respondent
81, Sakhar Bhawan 8thfloor
Nariman Point, Mumbai 400 021
PAN : AABCA3423F
Vs.
Appearances:
Usha S. Nair, ,for the appellant
Sunil Badala,for the respondent
Date of hearing : September 06, 2011
Date of pronouncement: September 06,2011
ORDER
Per Pramod Kumar:
1. This appeal is filed by the Assessing Officer against the order dated 24.10.2008 of the CIT(A), in the matter of penalty of Rs.3,71,39,200 under section 271(1)(c) of the Income Tax Act, 1961 relating to the assessment year 2003-04.2
2. At the time of hearing, learned counsel for the assessee produced a copy of ITAT order dated 26th August, 2011 for the assessment years 2003-04 in quantum appeal in the case of the assessee, wherein, the addition of made in respect of broken period interest and loss on interest rate swap valuation, has been deleted. He submitted that as the very basis of addition regarding levy of penalty has been deleted by the Tribunal, the penalty has to be cancelled. Learned D.R. could not controvert the aforesaid submissions of learned counsel for the assessee.
3. Having heard the rival contentions and having perused the order dated 26th August, 2011 of the Tribunal in quantum appeal of the assessee (supra), we find the addition in quantum appeal which was the very basis of levying the penalty, has been deleted by the Tribunal. Therefore, the penalty order of Assessing Officer ceases to be devoid of legally sustainable basis and the CIT(A) has rightly cancelled the penalty order. In view of this, we do not find any infirmity in the order of the CIT(A) to interfere and uphold the same.
.
4. In the result, appeal filed by the revenue is dismissed.
Pronounced in the open court at the time of hearing on 6th September, 2011 Sd/- Sd/-
(Asha Vijayaraghavan) (Pramod Kumar)
Judicial Member Accountant Member
Mumbai, Dated 6th September, 2011
Parida
Copy to:
1. The appellant
2. The respondent
3. Commissioner of Income Tax (Appeals),XXVII, Mumbai
4. Commissioner of Income Tax, City-III , Mumbai
5. Departmental Representative, Bench 'A' Mumbai //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI