M/s. Killick Nixon Ltd. v. DCIT CENT. Cir. - 3
[Citation -2008-LL-0523-7]
| Citation | 2008-LL-0523-7 |
|---|---|
| Appellant Name | M/s. Killick Nixon Ltd. |
| Respondent Name | DCIT CENT. Cir. - 3 |
| Court | ITAT-Mumbai |
| Relevant Act | Income-tax |
| Date of Order | 23/05/2008 |
| Judgment | View Judgment |
| Keyword Tags | opportunity of being heard • reasonable opportunity • secret commission • foreign currency • capital loss • plant |
| Bot Summary: | Penalty of Rs.1.45 crores levied by the Assessing Officer under section 271 of the Act having been partly confirmed by the learned CIT, the assessee is in appeal before us contending, inter alia, that the learned CIT has erred in confirming the levy of penalty of Rs.97,76,752/- under section 271 of the Act on the following disallowances : Secret Commission Rs.2,21,20,000/- Capital loss of Rs. 32,74,162/- ----------- TOTAL Rs.2,53,94,162/- ----------- 2. At the time of hearing learned Counsel, appearing on behalf of the assessee, submitted that subsequent to the passing of the Order by the learned CIT, in the penalty appeal, the issue concerning the correctness of the disallowance made by the Assessing Officer has come up before the Appellate Tribunal wherein the Bench considered the issue from paras 116 to 122 of the said Order 2 and restored the main issue to the file of the Assessing Officer and with regard to second issue the Assessing Officer was directed to consider the foreign currency loss as part of cost of plant for computing the capital gains for assessment year 1999-2000. In the light of observations of the Appellate Tribunal, learned Counsel, appearing on behalf of the assessee, pleaded that the penalty levied by the Assessing Officer requires to be reconsidered upon passing a consequential order in the quantum proceedings. Learned Counsel, submitted that consequential order, to give effect to the Order of the ITAT has not yet been passed. Learned DR has not raised any serious objection with regard to plea of the assessee. In the light of Order of the ITAT cited, we deem it fair and reasonable to set aside the impugned orders of the Assessing Officer as well as the CIT with a direction to the Assessing Officer to re-consider the matter in accordance with law after passing a consequential order giving effect to the Order of the ITAT in the quantum proceedings. Needless to observe that assessee shall be given a reasonable opportunity of being heard while considering the levy of penalty. |