Case Number: ITA 675/DEL/2019
Appellant: Motherson Sumi Systems Ltd., Being the Amalgamated Company of Sumi Motherson Innovative Engineering Limited (‘SMIEL’ or ‘The Appellant’) Amalgamated with Motherson Sumi Systems Ltd., Being the Amalgamating Company, F-7, Block B-1, 2nd Floor, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044
Respondent: Deputy Commissioner of Income Tax, Circle-24(2), New Delhi
Assessment Year: 2003-04
Result: Appeal Dismissed
Case Filed On: 2019-01-31
Order Type: Final Tribunal Order
Date of Order: 2022-01-11
Pronounced On: 2022-01-11
The appellant, Motherson Sumi Systems Ltd., filed this appeal against the order passed by the Commissioner of Income Tax (Appeals)-44, New Delhi, dated 19.11.2018, relating to the assessment year 2003-04. The primary issue in this case was the penalty under section 271(1)(c) of the Income Tax Act, amounting to Rs.71,83,895/- in respect of transfer pricing addition made under section 92CA(3) of the Act.
The appellant contested the penalty imposed under section 271(1)(c) of the Income Tax Act on the following grounds:
The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘E’, New Delhi, through video conferencing, with Shri Vijay Pal Rao, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member, presiding. The appellant’s representative, Ms. Saloni Shetal, informed the tribunal that the appellant had opted to settle the appeal under the Vivad se Vishwas Act, 2020 (VSVS). The Designated Authority had already issued Form-3 under VSVS forms, and the Senior Departmental Representative for the Revenue, Sh. B.M. Singh, did not object to the withdrawal of the appeal.
After due consideration, the ITAT opined that the appeal had become infructuous due to the settlement under VSVS. Therefore, the appeal was treated as withdrawn and dismissed. The tribunal also clarified that if the disputes under this appeal were not settled under VSVS, the appellant could approach the ITAT for restoration of the appeal in accordance with the law.
In conclusion, the ITAT dismissed the appeal filed by Motherson Sumi Systems Ltd. The tribunal upheld that the appeal had become infructuous due to the settlement under the Vivad se Vishwas Act, 2020. This case underscores the significance of alternative dispute resolution mechanisms in tax matters and the importance of clear and specific notices for penalty impositions.
Source: Income Tax Appellate Tribunal, Delhi Benches ‘E’, New Delhi
Disclaimer: This article provides an overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
Motherson Sumi Systems Ltd. vs DCIT, Circle-24(2), New Delhi: Assessment Year 2003-04
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