SHAREKHAN LTD, MUMBAI v. DCIT CC-22, MUMBAI

ITA 4377/MUM/2009 | 2000-2001
Pronouncement Date: 14-05-2010 | Result: Allowed

Appeal Details

RSA Number 437719914 RSA 2009
Assessee PAN AAECS5096H
Bench Mumbai
Appeal Number ITA 4377/MUM/2009
Duration Of Justice 9 month(s) 25 day(s)
Appellant SHAREKHAN LTD, MUMBAI
Respondent DCIT CC-22, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 14-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 14-05-2010
Assessment Year 2000-2001
Appeal Filed On 20-07-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI R.V. EASWAR SR. VICE PRESIDENT & SHRI R.K.PANDA AM I.T.A. NO. 4377/MUM/2009 (ASSESSMENT YEAR 2000-01) I.T.A. NO. 4378/MUM/2009 (ASSESSMENT YEAR 2002-03) I.T.A. NO. 4380/MUM/2009 (ASSESSMENT YEAR 2004-05) M/S. SHAREKHAN LTD. 206/A PHOENIX HOUSE SENAPATI BAPAT MARG LOWER PAREL MUMBAI-13 PAN: AAECS5096H VS. DCIT CC-22 AAYAKAR BHAVAN MAHARSHI KARVE MARG MUMBAI-400 020 APPELLANT RESPONDENT APPELLANT BY : SHRI HIRO RAI RESPONDENT BY : SHRI S.K. MOHANTY ORDER DATE OF HEARING: 06.05.2010 DATE OF ORDER: 14.05.2010 PER R.K.PANDA AM THE ABOVE THREE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS DATED 12 TH JUNE 2009 OF THE CIT(A)-IV MUMBAI RELATING TO ASSESSMENT YEARS 2000-01 2002-03 AND 2004-05 RESPECTIVELY. SINCE IDENTICAL ISSUES ARE INVOLVED IN ALL THESE APPEALS THEREFORE THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN ALL THESE APPEALS THE ASSESSEE HAS CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING TH E LEVY OF PENALTY U/S. 271(1)(C) OF THE INCOME-TAX M/S. SHAREKHAN LTD. =============== 2 ACT 1961 (THE ACT) ON ACCOUNT OF ADDITION MADE TO THE INCOME IN TREATING LIABILITY OF UNCLAIMED DIVIDEND OF CLIENTS AS BUSINESS INCOME OF THE ASSESSEE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET DREW THE ATTENTION OF THE BENCH THAT THE CIT(A) HAS SUSTAINED THE PENALTY ON ACCOUNT OF ADDITION OF UNCLAIMED DIVIDEND OF RS.3 42 233 FOR THE A.Y. 2000 - 01 RS.5 95 455 FOR THE A.Y. 2002-03 AND RS.5 20 78 8 FOR THE A.Y. 2004-05. REFERRING TO THE ORDER OF TH E TRIBUNAL IN ASSESSEES OWN CASE FOR THE ABOVE YEARS REPORTED IN 34 SOT 41 (MUM) HE SUBMITTED THAT SUCH ADDITION MADE BY THE ASSESSING OFFICER AND UPHELD B Y THE CIT(A) HAS BEEN DELETED BY THE TRIBUNAL. SINCE THE ADDITION BASED ON WHICH PENALTY WAS LEVIED HAS BEEN DELETED BY THE TRIBUNAL THE PENALTY DOES NOT SURVIVE. 4. THE LEARNED DR ON THE OTHER HAND FAIRLY CONCEDED THAT THE ADDITION BASED ON WHICH PENALTY WAS LEVIED HAS BEEN DELETED BY THE TRIBUNAL. 5. AFTER HEARING BOTH THE SIDES WE FIND THE PENALTY WAS LEVIED ON ACCOUNT OF ADDITION OF UNCLAIMED DIVIDEND OF RS.3 42 233 FOR THE A.Y. 2000 - 01 RS.5 95 445 FOR THE A.Y. 2002-03 AND RS.5 20 78 8 FOR THE A.Y. 2004-05. WE FIND THE ABOVE ADDITION MADE BY THE ASSESSING OFFICER AND UPHELD BY THE CIT(A) HAS BEEN DELETED BY THE TRIBUNAL A COPY OF WHICH WAS FILED AS REPORTED IN 34 SOT 412. SINCE THE VERY BASIS ON WHICH PENALTY WAS LEVIED HAS BEEN DELETED BY THE TRIBUNAL THEREFORE THE PENALTY DOE S NOT SURVIVE. ACCORDINGLY THE ORDER OF THE CIT(A)I S M/S. SHAREKHAN LTD. =============== 3 SET ASIDE AND THE PENALTY FOR ALL THE THREE YEARS I S CANCELLED. 6. IN THE RESULT THE ABOVE THREE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. PRONOUNCED ON 14 TH MAY 2010 SD/- (R.V. EASWAR) SR. VICE PRESIDENT SD/- (R.K. PANDA) ACCOUNTANT MEMBER MUMBAI DATED 14 TH MAY 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CENTRAL-IV MUMBAI 4. THE CIT CENTRAL-II MUMBAI 5. THE DR E BENCH. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI TPRAO