STANDARD INDUSTRIES LTD,MUMBAI vs. ` DCIT CIR 3(3), MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा लेखा सद�य लेखा लेखा सद�य सद�य राजे�� सद�य राजे�� राजे�� केकेकेके अनुसार राजे�� अनुसार अनुसार /PER RAJENDRA, AM- अनुसार Challenging the order dt.29.3.2014 the assessee has filed the present appeal. Assessee – company ,engaged in the business of manufacturing and sale of textile gods, readymade garments, chemicals ,filed its return of income on 29/9/2008, declaring Nil income under the normal provisions.The AO completed the assessment u/s. 143(3) on 14/05/2010 determining its income at Rs.Nil under the normal provisions and book profit (-) Rs.63.74 crores u/s. 115JB of the Act. 2.Effective Ground of appeal is about levy of penalty u/s. 271(1)(c) of the Act towards adjustment of written down value of motor vehicles, aggregating to Rs.1.44 crores, against the profit on sale of plant and machinery while computing Short Term Capital Gain (STCG) on sale of depreciable assets u/s.50(1) of the Act. While completing the assessment, the AO observed that STCG on sale of depreciable asset was not shown correctly . He computed the STCG at Rs.14.93 crores against Rs.13.48 crores offered for tax in the return of income.Vide his order dt.28.3.2013, the AO levied penalty of Rs.44.71 crores u/s.271(1)(c )of the Act after issuing a notice to the assessee alleging that it had filed inaccurate particulars of income. 3.During the appellate proceedings,the First Appellate Authority (FAA) upheld the penalty order of the AO. During the course of hearing before us the Authorised Representative (AR) stated that the Tribunal had deleted the addition in the quantum appeal vide its order dt.28/ 4/2017 (ITA/3623/Mum/2012). We find that the Tribunal while allowing the quantum appeal held that the issue raised by the assessee was covered by the judgment of Hon'ble Delhi High

4093/M/15(08-09) Standard Industries Court in the case of Ansal Properties & Infrastructure Ltd.(20taxmann.com770). As the quantum addition has been deleted by the Tribunal, so, the penalty order would not survive. Effective Ground of appeal is decided in favour of the assessee.