THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. STANDARD CHARTERED GRINDLAYS PTY LTD.(FORMERELY ANZ GRINDLAYS BANK),

This is an application moved on behalf of the appellant/revenue seeking condonation of delay in re-filing the appeal.

1 According to the appellant/revenue, there is a delay of four hundred (400) days.

Given the fact that we intend to decide the appeal on merits, delay in Digitally Signed By:TARUN RANA Signing Date:30.10.2023 17:48:50 Signature Not Verified

The application is disposed of in the aforesaid terms. ITA 567/2023

This appeal concerns Assessment Year (AY) 1997-98. 5. Via the instant appeal, the appellant/revenue seeks to assail the order dated 21.07.2020 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”].

1 The Tribunal, via the impugned order, has set aside the penalty order passed qua the respondent/assessee.

The record shows that the Assessing Officer (AO) passed a penalty order dated 30.03.2007 against the respondent/assessee under Section 271(1)(c) of the Income-tax Act, 1961 [in short, “Act”] on the ground that the respondent/assessee had deliberately concealed facts and furnished inaccurate particulars concerning its taxable income.

The penalty order was confirmed by the Commissioner of Income Tax (Appeals) [in short, “CIT(A)”] via the order dated 28.04.2017. The respondent/assessee was, thus, mulcted with a penalty amounting to Rs. 21,48,56,826/-.

A perusal of the impugned order shows that the trigger for the penalty was the following additions that had been made by the AO, which were, then sustained by the CIT(A). The details of the additions are set for hereafter: Disallowance Amount (i) Training expenses disallowed under Rule 6D Rs. 6,89,264/- (ii) Disallowance of provision under Rs. 4,35,35,093/- Digitally Signed By:TARUN RANA Signing Date:30.10.2023 17:48:50 Signature Not Verified

The Tribunal, however, in quantum proceedings, via order dated 30.01.2017, deleted the expenses that were disallowed under Rule 6D of the Income-tax Rules, 1962, as well as VRS expenses that had been amortized.

Likewise, upon remand by the Tribunal, via the appeal effect order, the AO fully allowed the deduction claimed by the respondent/assessee under Section 36(1)(viia). It is required to be noticed that, insofar as disallowance under Section 115(3) of the Act was concerned, the Tribunal, in quantum proceedings, in the order dated 30.01.2017, had directed the AO to recompute the same as per the formula outlined in paragraph 48 of its order.

Therefore, out of the four (4) additions referred to hereinabove, in the quantum proceedings, the respondent/assessee ultimately succeeded in getting three (3) out of the (4) additions deleted.

As regards disallowance made under Section 115(3) of the Act, the Tribunal noted that, since the assessee had neither furnished inaccurate particulars nor did it conceal income, a penalty could not be levied on that score. These aspects are noted by the Tribunal in paragraphs 9 to 11 of the impugned order. We tend to agree with the view taken in that behalf by the Tribunal.

Therefore, having regard to the aforesaid, in our opinion, no substantial question of law arises for our consideration.

The appeal is, accordingly, closed.