DCIT 2(2), MUMBAI vs. KNIGHT FRANK INDIA P.LTD, MUMBAI

PDF · subscribers
ITA 7368/MUM/2013Status: DisposedITAT Mumbai01 January 2016AY 2007-082 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that a previous order had deleted the service tax additions and set aside the Section 41(1) addition to the AO. Therefore, the penalty imposed for these additions would not survive.

What were the facts?

The Assessing Officer (AO) made additions to the assessee's income on account of service tax and under Section 41(1). The Commissioner (Appeals) confirmed part of these additions. Subsequently, the AO imposed a penalty under Section 271(1)(c) for furnishing inaccurate particulars.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted or set aside by higher authorities.

Which sections of the Income-tax Act were involved?

Section 145A,Section 41(1),Section 271(1)(c),Section 143(3)

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अिधकरण,” ऐ” खंडपीठ मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-A,BENCH सव"ी जोिग"दर"सह , "याियक सद"य एवं एवं राजे"", लेखा सद"य एवं एवं Before S/Sh. Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं/.ITA/7368/Mum/2013,िनधा"रण िनधा"रण वष" वष"/Assessment Year :2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Dy. CIT-2(22) M/s. Knight Frank (India) Pvt. Mumbai-400 020. Prabhadevi Mumbai-400 025. PAN:AAACK 1544 J (अपीलाथ" /Appellant) (""यथ" / Respondent) िनधा"रती िनधा"रती िनधा"रती ओर िनधा"रती ओर ओर सेसेसेसे/Assessee by :Shri Amey Wagle ओर राज"व क" ओर से/ Revenue by :Shri Asghar Zain सुनवाई सुनवाई सुनवाई क" सुनवाई क" क" तारीख क" तारीख तारीख / Date of Hearing : 01-12- 2015 तारीख घोषणा क" तारीख / Date of Pronouncement : 01.01.2016 आयकर आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद"य राजे"" के अनुसार PER RAJENDRA, AM- लेखा सद"य राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार Challenging the order dt.30.09.2013 of CIT(A)-5,Mumbai,the Assessing Officer(AO) has filed the present appeal. 2.Assessee-company,engaged in the business of property management and consultancy,filed its return of income on 14.11.2007,declaring income at Rs.9.32 Crores.The AO completed the assessment on 29.12.2009,u/s. 143(3) of the Act determining the income of the assessee at Rs.10.03 Crores.During the assessment proceedings,the AO made additions on account of service tax (as part of trading receipt)as per provisions of section 145A of Rs.69.20 lakhs and addition of Rs.1.20 lakhs u/s.41(1)of the Act. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA),who confirmed the addition to the tune of Rs.22,00,808/-and Rs.1.20 lakhs under the heads service tax and u/s.41(1) respectively.Following the order of the FAA,the AO imposed penalty of Rs.6.96 lakhs in respect of the additions sustained by the him,u/s.271(1)(c) of the Act for furnishing inaccurate particulars of income. 3.During the appellate proceedings,before the FAA,it was argued that the Tribunal had,vide its order dated 10.07.2013,(ITA/2021/Mum/2011),deleted the additions on account of service tax and had set aside the issue of addition made u/s.41(1)of the Act to the file of the AO.After considering the submissions of the assessee,he deleted the penalty imposed by the AO. 4.Before us,the Departmental Representative(DR)stated the matter could be decided on merits.Authorised Representative(AR) referred to the order of the Tribunal dated 10.07.2013. We have heard the rival submissions and perused the material before us.We find that the Tribunal in its order at paragraph no.12 had deleted the addition made with regard to service tax.It had also sent back the matter of addition made u/s.41(1)of the Act to the AO.In these circumstances,we are of the opinion that penalty order would not survive.Therefore, confirming the order of the FAA,we decide the effective ground of appeal against the AO.

7368/13Knight Frank-07-08 As a result, appeal filed by the AO stands dismissed. फलतः िनधा"रती अिधकारी "ारा दािखल क" गई अपील नामंजूर क" जाती है. Order pronounced in the open court on 1st January, 2016. आदेश क" घोषणा खुले यायालय म# $दनांक 01 जनवरी, 2016 को क" गई । (जोिग"दर"सह/ Joginder Singh) (राजे"" / RAJENDRA) "याियक सद"य / JUDICIAL MEMBER लेखा लेखा लेखा सद"य लेखा सद"य सद"य / ACCOUNTANT MEMBER सद"य मुंबई/Mumbai,"दनांक/Date 01.01.2016 व.िन.स.Jv.Sr.PS. आदेश क" क" "ितिलिप "ितिलिप अ"ेिषत अ"ेिषत/Copy of the Order forwarded to : आदेश आदेश आदेश क" क" "ितिलिप "ितिलिप अ"ेिषत अ"ेिषत 1.Appellant /अपीलाथ"

2.

Respondent /""यथ" 3.The concerned CIT(A)/संब" अपीलीय आयकर आयु", 4.The concerned CIT /संब" आयकर आयु" 5.DR “ ” Bench, ITAT, Mumbai /िवभागीय "ितिनिध, ए खंडपीठ,आ.अ."याया.मुंबई 6.Guard File/गाड" फाईल स"यािपत "ित //// आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार Dy./Asst.

More judgments on Section 145A

All 656 judgments and leading authorities on Section 145A →

Recent GST High Court judgments

Search GST case law →