Income Tax Appellate Tribunal - Mumbai
Gtc Industries Ltd, Mumbai vs Asst Cit 9(3)(2), Mumbai on 5 July, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL "E", BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM ITA No.1574/Mum/2016 & 1575/Mum/2016 (Assessment Year :1985-86 & 1986-87) M/s. GTC Industries Ltd., (Now Vs. Asst. CIT CEN CIR (9), known as Golden Tobacco Ltd., R.No.418, Tobacco House, SC Road, Vile Aayakar Bhavan, Parle (W), Mumbai - 400 056 M.K. Road, Mumbai - 400 020 PAN/GIR No. AAACG1421A Appellant) .. Respondent) Assessee by Shri Gaurav Bansal Revenue by Shri Ram Tiwari Date of Hearing 03/07/2017 Date of Pronouncement 05/07/2017 आदे श / O R D E R PER R.C.SHARMA (A.M):
These are the appeals filed by the assessee against the order of CIT(A)- 16, Mumbai dated 30/12/2015 for the A.Y.1985-86 and 1986-87 in the matter of imposition of penalty u/s.274(2)(aa) of the IT Act.
2. Rival contentions have been heard and record perused.
3. In both the years under consideration, AO made various additions and also imposed penalty u/s.273(2)(aa) of the IT Act for wrong furnishing of estimate of advance tax payable by assessee u/s.212(3A) of the IT Act.
4. By the impugned order, CIT(A) confirmed the action of the AO imposing penalty u/s.274(2)(aa) of IT Act.. At the outset learned AR placed on record the order of the Tribunal in these years dated 2 ITA No.1574/Mum/2016 & 1575/Mum/2016 M/s. GTC Industries Ltd., 07/03/2017 in ITA Nos. 1055/Mum/1994 & 1056/Mum/1994 for the A.Y.1985-86 and 1986-87, wherein additions so made by the AO have been deleted. Learned AR also placed on record the order passed by the DCIT dated 29/03/2017 giving effect to the above order of the Tribunal wherein assessed income of the assessee has been reduced to the income returned by it. As the additions with respect to which estimate of advance tax so filed by assessee was found to be wrong has already been deleted by the Tribunal, it was contended by learned AR that penalty so levied for furnishing of estimate of advance tax, has no legs to stand.
5. On the other hand, learned DR relied on the order of the AO and CIT(A).
6. We have considered rival contentions and carefully gone through the orders of the authorities below. We had also gone through the orders of the Tribunal in quantum appeal dated 07/03/2017 for the A.Y. 1985-86 and 1986-87 wherein additions so made have been deleted by the Tribunal. We have also gone through the order passed by the DCIT dated 29/03/2017 for the A.Y.1985-86, being the order giving effect to the order of the Tribunal revising income at Rs.3,84,14,220/- which is same as the declared income by the assessee as per the return of income filed on 28/06/1985. As the additions for which estimate of advance tax filed by the assessee was held to be wrong by the AO, have already been deleted by the Tribunal, the penalty so imposed u/s.273 (2) (aa) has no legs to stand.
3ITA No.1574/Mum/2016 & 1575/Mum/2016
M/s. GTC Industries Ltd.,
7. Similarly, additions in the A.Y.1986-87 have also been deleted by the order of the Tribunal dated 07/03/2017, for furnishing estimate of advance tax the penalty so imposed has no legs to stand. Accordingly, we direct the AO to delete penalty so imposed u/s.274 (2)(aa) of the IT Act.
8. In the result, both the appeals of the assessee are allowed.
Order pronounced in the open court on this 05/07/2017
Sd/- Sd/-
(AMARJIT SINGH) (R.C.SHARMA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Mumbai; Dated 05/07/2017
Karuna Sr.PS
Copy of the Order forwarded to :
1. The Appellant
2. The Respondent.
3. The CIT(A), Mumbai.
4. CIT
DR, ITAT, Mumbai
5. BY ORDER,
6. Guard file.
सत्यापित प्रतत //True Copy//
(Asstt. Registrar)
ITAT, Mumbai