ITO 4(2)(3), MUMBAI v. SUBHKAM STOCK & SHARES LTD, MUMBAI

ITA 1478/MUM/2009 | 2003-2004
Pronouncement Date: 28-01-2010 | Result: Dismissed

Appeal Details

RSA Number 147819914 RSA 2009
Assessee PAN AAACM7389K
Bench Mumbai
Appeal Number ITA 1478/MUM/2009
Duration Of Justice 10 month(s) 26 day(s)
Appellant ITO 4(2)(3), MUMBAI
Respondent SUBHKAM STOCK & SHARES LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 25-01-2010
Assessment Year 2003-2004
Appeal Filed On 04-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E: MUMBAI BEFORE SHRI J. SUDHAKAR REDDY (AM) AND SHRI R.S. PADVEKAR (JM) ITA NO. 1478/MUM/2009 (ASSTT. YEAR : 2003-04 ) THE ITO-4(2)(3) MUMBAI APPELLANT ROOM NO.647 6 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI 400 020 V/S. M/S SUBHKAM STOCK & SHARES LTD RESPONDENT 15 ONLOOKER BUILDING SIR P.M. ROAD FORT MUMBAI-23 PAN : AAACM7389K APPELLANT BY :MR. NAVEEN GUPTA RESPONDENT BY :MR. R.C. JAIN : O R D E R : PER R.S. PADVEKAR J.M THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE IMPUGNED ORDER OF THE LD CIT(A)- IV MUMBAI DATED 11.9.2006 FOR TH E A.Y. 2003-04. 2. THE REVENUE HAS TAKEN THE FOLLOWING EFFECTIVE GR OUND : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) ERRED IN DELETING THE PENALTY OF RS. 19 8 4 640/- LEVIED U/S. 271(1)(C ) OF THE I.T. ACT WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAD FILED INACCURATE PARTICULARS AND CLAIMED SET OF F OF SPECULATION LOSS AGAINST THE DIVIDEND INCOME ASSESSABLE UNDER THE HE AD INCOME FROM OTHER SOURCES. 3. WE HAVE HEARD THE PARTIES. THE A.O HAS LEVIED T HE PENALTY U/S. 271(1)(C) ON THE ISSUE OF NON-SETTING OF DIVIDEND I NCOME AGAINST THE DEEMED ITA NO. 1478/MUM/2009 2 SPECULATION LOSS AS PER THE EXPLANATION U/S. 73 OF THE I.T. ACT. THE ASSESSEE HAS CHALLENGED BY WAY OF APPEAL BEFORE ITAT MUMBA I AND ITAT VIDE ORDER DT. 7.11.2008 IN ITA NO. 7068/MUM/2006 HAS ALLOWED THE APPEAL FILED BY THE ASSESSEE. THE A.O. LEVIED THE PENALTY U/S. 271(1)( C ) ON THE REASON THAT THE ASSESSEE HAS FURNISHED THE INACCURATE PARTICULARS O F INCOME IN RESPECT OF THE DIVIDEND CLAIMING THE SAME AS INCOME FROM THE BUSIN ESS AS AGAINST THE INCOME FROM OTHER SOURCES. AS THE TRIBUNAL HAS DE CIDED THE ISSUE IN QUANTUM APPEAL IN FAVOUR OF THE ASSESSEE WHICH WAS THE BASI S FOR THE LEVY OF PENALTY HENCE THE PRESENT PENALTY LEVIED BY THE A.O U/S. 2 71(1)(C ) DOES NOT SURVIVE AS RIGHTLY HELD BY THE LD CIT(A). WE FIND NO REASO N TO INTERFERE WITH THE ORDER OF THE LD CIT(A). ACCORDINGLY THE SAME IS CONFIRM ED. 4. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28TH DAY OF JANUARY 2010. SD/- SD/- (J. SUDHAKAR REDDY) (R.S. PADVEKAR) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI ON THIS 28TH DAY OF JANUARY 2010. :US COPY TO: 1. APPELLANT 2. RESPONDENT 3.THE CIT(A)- IV MUMBAI 4.THE CIT -4 MUMBAI 5.THE DR E BENCH MUMBAI 6.GUARD FILE BY ORDER TRUE COPY ASSTT..REGISTRAR ITAT MUMBAI. ITA NO. 1478/MUM/2009 3 US DATE INITIALS 1. DRAFT DICTATED ON 25/1/10 --------------- SR.P.S . 2. DRAFT PLACED BEFORE AUTHORITY27/1/10 --------- ----- SR.P.S. 3. DRAFT PROPOSED & PLACED ----------- ---------- --- JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED ----------- ----------- -- JM/AM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO ----------- ------------ - SR.P.S. THE SR. P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON --------- ----------- -- SR.P.S. 7. FILE SENT TO THE BENCH CLERK --------- --------- ---- SR.P.S. 8. DATE ON WHICH FILE GOES TO THE ------- --------- ---- 9. DATE OF DISPATCH OF ORDER --------- --------- ----