DCIT 3(3), MUMBAI v. RELIANCE GENERAL INSURANCE CO. LTD, MUMBAI

ITA 1689/MUM/2010 | 2002-2003
Pronouncement Date: 28-01-2011 | Result: Dismissed

Appeal Details

RSA Number 168919914 RSA 2010
Assessee PAN AABCR6747B
Bench Mumbai
Appeal Number ITA 1689/MUM/2010
Duration Of Justice 10 month(s) 26 day(s)
Appellant DCIT 3(3), MUMBAI
Respondent RELIANCE GENERAL INSURANCE CO. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 28-01-2011
Assessment Year 2002-2003
Appeal Filed On 04-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI J. SUDHAKAR REDDY A.M. AND SHRI V. DU RGA RAO J.M. ITA NO. 1689/M/2010 ASSESSMENT YEAR: 2002-03 DY. COMMISSIONER OF INCOME TAX APPELLANT CIRCLE 3(3) ROOM NO. 609 6 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI 400 020. VS. M/S RELIANCE GENERAL INSURANCE CO. LTD. RESPONDE NT 3 RD FLOOR MAKER CHAMBERS IV NARIMAN POINT MUMBAI 400 021. (PAN AABCR6747B) APPELLANT BY : MR. R.S. SRIVASTAVA RESPONDENT BY : MR. JITENDRA SANGHAVI . ORDER PER V. DURGA RAO J.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A)- 7 MUMBAI PASSED ON 08/12/2009 FOR THE ASS ESSMENT YEAR 2002-03. 2. THE GROUND RAISED BY THE REVENUE IN THIS APPEAL IS AGAINST THE ACTION OF THE CIT(A) IN DELETING THE PENALTY OF RS. 2 60 106/- LEVIED BY THE AO U/S 271(1)(C) OF THE ACT. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE HAD SUBMITTED ITS RETURN OF INCOME ON 31/10/2002 DECLARING TOTAL INCOME OF RS. 1 53 79 280/- AFTER CLAIMING THE EXEMPTION FROM TAX ON PROFIT ON SALE OF INVESTMENTS OF RS. 7 07 773/- WHICH WAS CLAIMED IN VIEW OF THE ITA NO.1689/M/10 M/S M/S RELIANCE GENERAL INSURANCE CO. LTD. 2 AMENDMENT MADE BY FINANCE ACT 1988. THE AO HOWEVE R DID NOT ACCEPT THE CLAIM FOR DEDUCTION AND THE CIT(A) CONFI RMED THE ADDITION BUT HE TREATED THE PROFIT ON SALE OF INVESTMENTS AS INCOME FROM BUSINESS INSTEAD OF AS A CAPITAL GAINS CONCLUDED BY THE AO. THEREAFTER THE AO INITIATED PENALTY PROCEEDINGS U/ S 271(1)(C) OF THE ACT ON THE GROUND THAT THE ASSESSEE HAS FILED INACC URATE PARTICULARS OF ITS INCOME AND LEVIED PENALTY OF RS. 2 60 106/- U/S 271(1)(C). ON APPEAL THE CIT(A) CANCELLED THE PENALTY. 4. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES AND PERUSED THE RECORD. WE FIND THAT THE ITAT IN THE QU ANTUM APPEAL IN ITA NO. 3084/M/08 VIDE ITS ORDER DATED 26/02/10 DEL ETED THE ADDITION MADE BY THE AO BY HOLDING THAT .BY OMISSION OF CLAUSE(B) OF RULE 5 THE TAXABILITY OF INCOME OF INS URANCE COMPANIES DOES NOT EXTEND TO TAXABILITY OF PROFITS ON SALE OF INVE STMENTS FOR THE PERIOD AY 89-90 TO 2010-2011. SINCE THE QUANTUM ADDITION ITSELF IS NON- EXISTENT LEVYING PENALTY ON SUCH NON-EXISTENT ADDI TION DOES NOT HAVE LEGS TO STAND THEREFORE WE HEREBY CONFIRM THE ORD ER OF THE CIT(A) IN CANCELING THE PENALTY OF RS. 2 60 106/- LEVIED BY T HE AO U/S 271(1(C) OF THE ACT. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF JANUARY 2011. SD/- SD/- (J. SUDHAKAR REDDY) (V. DURGA RAO) ACCOUNTANT MEMBER JUDI CIAL MEMBER MUMBAI DATED: 28 TH JANUARY 2011. ITA NO.1689/M/10 M/S M/S RELIANCE GENERAL INSURANCE CO. LTD. 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE D BENCH I.T .A.T. MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR I.T.A.T. MUMBAI. KV S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON 20/01/11 SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR 24/01/11 SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER