LAWS(MAD)-2012-12-300

COMMISSIONER OF INCOME-TAX Vs. WAVE CURRENT AUTOMOTIVES LTD

Decided On December 13, 2012
COMMISSIONER OF INCOME-TAX Appellant
V/S
Wave Current Automotives Ltd Respondents

JUDGEMENT

(1.) THESE appeals have been filed by the Revenue under Section 260-A of the Income Tax Act, 1961, (hereinafter will be referred to as "the Act") challenging the orders of the Income Tax Appellate Tribunal, Chennai, both dated 20.02.2007, passed in ITA.No.1210/Mds/2004 and ITA.No.1211/Mds/2004, respectively.

(2.) THE brief facts, arising out of the above orders, are as under:- The assessee / respondent is a company engaged in the manufacture of pistol, pins and heat treatment equipments. The relevant assessment is 1997-1998 and the corresponding accounting year ended on 31.03.1997. The assessee filed the return of income for the assessment year on 01.12.1997. The said return was processed under Section 143 (1) (a) of the Act. Later notice under Section 143 (2) of the Act was issued. The Assessing Officer completed the assessment under Section 143 (3) of the Act and determined the total income at Rs.99,240/-. While completing the assessment, the Assessing Officer made an addition of Rs.23,75,000/-, under the head 'Commission Income'. The Assessing Officer also initiated penalty proceedings under Section 271 (1) (c) of the Act and by an order, dated 28.09.2000, the Assessing Officer levied the penalty of Rs.10,21,250/-. Aggrieved by both the assessment and levying of penalty, the Assessee filed appeals before the Commissioner of Income-Tax (Appeals). The Commissioner of Income Tax (Appeals) dismissed both the appeals. Aggrieved by that, the assessee filed appeals before the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal, in respect of the quantum (ITA.No.1210/Mds/2004), directed the Assessing Officer to compute the amount of brokerage at 8.5% on Rs.23,80,000/- and further directed that this amount should be deducted from the Gross Commission Received and partly allowed the appeal. In respect of penalty appeal in ITA.No.1211/Mds/2004, the Tribunal allowed the appeal and deleted the penalty, by following this Court's judgment in the case of Commissioner of Income-Tax v. A.Hariraman, reported in (2006) 282 ITR 607 (Mad) and also the Apex Court's judgment in the case of CIT v. Prithipal Singh and Company, reported in 249 ITR 670 (SC). Aggrieved by that, the Revenue preferred the above tax cases raising the following substantial questions of law:- T.C.No.1455 of 2007:-

(3.) INSPITE of notice being served on the assessee and its name being printed in the cause list, there is no representation on behalf of the assessee/respondent.