Porecha Gloabal Securities P. Ltd , ... vs Assessee

BEFORE HON'BLE S/SHRI H.L. KARWA, PRESIDENT AND B.R.BASKARAN (AM) सव ी एच.एल. कावा, अ य एवं बी.आर.बा करन, लेखा सद य

आयकर अपील सं./I.T.A. No.3104/Mum/2012 ( नधारण वष / Assessment Year :2006-07)

M/s Porecha Global Securities बनाम/ Asstt.Commissioner of Income Pvt.Ltd, Vs. Tax -Circle 4(2), PG-14, Rotunda Building Aayakar Bhavan, Stock Exchange, B S Marg, M.K.Road, Mumbai-400023 Mumbai-400020 (अपीलाथ /Appellant) .. ( यथ / Respondent)

थायी ले ख ा सं . /जीआइआर सं . /PAN/GIRNo. :AAACP6228M

अपीलाथ ओर से / Appellant by : Shri Samir Porecha यथ क ओर से/Respondent by Shri Parmanand J

सन ु वाई क तार ख / Date of Hearing :31.12.2014 घोषणा क तार ख /Date of Pronouncement :16.01.2015

आदे श / O R D E R

Per B.R.BASKARAN, Accountant Member:

The assessee has filed this appeal challenging the order dated 19- 01-2012 passed by Ld CIT(A)-8, Mumbai confirming the penalty levied u/s 271(1)(c) of the Act for the assessment year 2006-07. The appeal is barred by limitation by 21 days. The assessee has moved a petition requesting the bench to condone the delay. In the petition it is stated that the employee who received the appellate order issued by Ld CIT(A) kept it 2

with him and went on leave due to his personal works. The order was given to the directors only after his return and the same has caused the delay. The assessee has also furnished an affidavit given by Shri Laxman Pawar, employee of the assessee. We heard the Ld D.R on this preliminary issue. Having regard to the submissions made in the petition, we are of the view that there was reasonable cause for filing the present appeal belatedly. Accordingly, we condone the delay and admit the appeal for hearing.

2. We heard the parties and perused the record. We notice that the penalty of Rs.4,50,000/- was levied u/w 271(1)(c) of the Act on the disallowance of Rs.15.00 lakhs relating to the brokerage payment. At the time of hearing, the Ld A.R submitted order dated 04-04-2014 passed by the Tribunal in the quantum assessment proceedings in ITA No.1590/Mum/2010, wherein the co-ordinate bench of Tribunal had reduced the disallowance to Rs.12.00 lakhs. The Ld A.R further submitted that the Tribunal had sustained the addition to the extent of Rs.3.00 lakhs, since the brokerage payment was made to related persons covered by sec. 40A(2)(b) of the Act. He further submitted that the disallowance of Rs.3.00 lakhs was also sustained by the Tribunal on estimated basis only. Accordingly he submitted that the impugned penalty is liable to be deleted.

3. The Ld D.R did not dispute the facts furnished by Ld A.R.

4. Thus, we notice that the addition of Rs.15.00 lakhs made by the assessing officer, on which the impugned penalty was levied, was sustained to the extent of Rs.3.00 lakhs only by the Tribunal, thus giving relief of Rs.12.00 lakhs to the assessee. Even the above said Rs.3.00 lakhs was seen sustained on estimated basis. Under these set of facts, we find merit in the contentions of the assessee. Accordingly, we set aside 3

the order of Ld CIT(A) and direct the assessing officer to delete the penalty levied u/s 271(1)(c) of the Act for the year under consideration.

5. In the result, the appeal filed by the assessee is allowed.

The above order was pronounced in the open court on 16th Jan,2015.

घोषणा खुले यायालय म दनांकः16 th Jan 2015 को क गई ।

sd sd

(एच.एल. कावा/ H.L. KARWA) (बी.आर. बा करन,/ B.R. BASKARAN) अ य / PRESIDENT लेखा सद य/Accountant Member मब ुं ई Mumbai: 16th Jan, 2015.

व. न.स./ SRL , Sr. PS

आदे श क त ल प अ े षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. आयकर आयु त(अपील) / The CIT(A)- concerned

4. आयकर आयु त / CIT concerned

5. वभागीय त न ध, आयकर अपील य अ धकरण, मब ुं ई / DR, ITAT, Mumbai concerned

6. गाड फाईल / Guard file.

आदे शानस ु ार/ BY ORDER, true copy सहायक पंजीकार (Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई /ITAT, Mumbai