RUBY MILLS LTD., MUMBAI v. A.C.I.T. CIR.7(2), MUMBAI

ITA 8429/MUM/2011 | 2005-2006
Pronouncement Date: 03-07-2013 | Result: Allowed

Appeal Details

RSA Number 842919914 RSA 2011
Assessee PAN AAACT0220G
Bench Mumbai
Appeal Number ITA 8429/MUM/2011
Duration Of Justice 1 year(s) 6 month(s) 22 day(s)
Appellant RUBY MILLS LTD., MUMBAI
Respondent A.C.I.T. CIR.7(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 03-07-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 03-07-2013
Date Of Final Hearing 12-03-2013
Next Hearing Date 12-03-2013
Assessment Year 2005-2006
Appeal Filed On 12-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D MUMBAI .. BEFORE SHRI R.S.SYAL AM AND SHRI AMIT SHUKLA JM ITA NO.8429/MUM/2011 : ASST.YEAR 2005-2006 RUBY MILLS LTD. RUBY HOUSE J.K. SAWANT MARG DADAR (W) MUMBAI-400 028 PAN :AAACT 0220 G / VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 7(2) MUMBAI. ( !' / APPELLANT) ( #$ !' / RESPONDENT) !' / APPELLANT BY : MRS. KRUPA R GANDHI #$ !' / RESPONDENT BY : MRS. R.M. MADHAVI % & ' ( / DATE OF HEARING : 01.07.2013 )*+ ' ( / DATE OF PRONOUNCEMENT : 03 .07.2013 ! ' / O R D E R PER R.S.SYAL ( AM) : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 22.0 7.2011 UPHOLDING PENALTY OF ` 53 85 000/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT IN RELATION TO THE ASSESS MENT YEAR 2005-2006. 2. BRIEFLY STATED THE FACTS OF THE CASE LEADING TO THE IMPOSITION OF PENALTY ARE THAT THE ASSESSEE SOLD CERTAIN PROPERTY AND OFFERED THE AMOUNT OF PROFIT FOR TAXATION UNDER THE HEAD `CAPIT AL GAINS. THE ASSESSING OFFICER TOOK THE VIEW THAT IT WAS IN THE NATURE OF BUSINESS INCOME ARISING OUT OF ADVENTURE IN THE NATURE OF T RADE. ACCORDINGLY HE ENHANCED THE TOTAL INCOME ON THIS ISSUE. THE LD. CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS SCORE. IT IS ON THE BASIS OF THIS ADDITION THAT ITA NO.8429/MUM/2011. RUBY MILLS LTD. MUMBAI. 2 THE PRESENT PENALTY CAME TO BE IMPOSED AND APPROVED IN THE FIRST APPEAL. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. AT THE VERY OUTSET THE LD. COU NSEL FOR THE ASSESSEE SUBMITTED THAT THE ACTION OF THE ASSESSING OFFICER IN TREATING THE INCOME FROM THE SALE OF PROPERTY AS `BUSINESS INCOM E AS AGAINST THE ASSESSEES CLAIM OF `CAPITAL GAINS CAME UP FOR CON SIDERATION BEFORE THE TRIBUNAL IN QUANTUM APPEAL. HE STATED THAT THE TRIBUNAL IN ITA NO. 2694/M/2009 VIDE ITS ORDER DATED 26.04.2014 HAS UPHELD THE STAND OF THE ASSESSEE. A COPY OF THE SAID ORDER WAS PLACED ON RECORD. IN VIEW OF THESE FACTS IT WAS STATED THAT NO PENA LTY COULD BE IMPOSED. THE LD. DR FAIRLY CONCEDED THAT THE FOUNDATION FOR THE IMPOSITION OF PENALTY DOES NOT EXIST BY VIRTUE OF THE AFORESAID O RDER PASSED BY THE TRIBUNAL. 4. IN VIEW OF THE RIVAL BUT COMMON SUBMISSIO NS IT IS FOUND THAT THE VERY BEDROCK ON WHICH THE PRESENT PENALTY HAS BEEN IMPOSED AND CONFIRMED CEASES TO EXIST BECAUSE OF THE ORDER PAS SED BY THE TRIBUNAL IN QUANTUM PROCEEDINGS ACCEPTING THE ASSESSEES POI NT OF VIEW AND CONSEQUENTLY DELETING THE ADDITION. WE THEREFORE S ET-ASIDE THE IMPUGNED ORDER AND CANCEL THE INSTANT PENALTY. 5. - . / 0 ' 1 23 IN THE RESULT THE APPEAL IS ALLOWED. ITA NO.8429/MUM/2011. RUBY MILLS LTD. MUMBAI. 3 ORDER PRONOUNCED ON THIS 3 RD DAY OF JULY 2013. ' )*+ 4% 5. 03-07-2013 * ' <& SD/- SD/- (AMIT SHUKLA) (R.S.SYAL) # !$ / JUDICIAL MEMBER % !$ / ACCOUNTANT MEMBER 5=& MUMBAI ; 4% 5 DATED : 3 RD JULY 2013. ASHISH ! ' &#'() * )+' / COPY OF THE ORDER FORWARDED TO : 1. !' / THE APPELLANT 2. #$ !' / THE RESPONDENT. 3. ( ) / THE CIT-7 MUMBAI. 4. / CIT(A)-13 MUMBAI 5. @A < #%BC ( BC 5=& / DR ITAT MUMBAI 6. < D E & / GUARD FILE. ! ' / BY ORDER $ @ # //TRUE COPY// /- . ( DY./ASSTT. REGISTRAR) 5=& / ITAT MUMBAI