9911796707
TMI Blog2016 (8) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... e terms of the Agreement arrived at between the parties with each other at arms length and with no allegation of any collusion between them. Thus the Tribunal has not committed any error in allowing the appeal filed by assessee.- Decided against the Revenue. - TAX APPEAL NO. 1905 of 2008 With TAX APPEAL NO. 1906 of 2008 With TAX APPEAL NO. 1605 of 2009 - - - Dated:- 8-8-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR NITIN K MEHTA, ADVOCATE FOR THE OPPONENT : MR SN SOPARKAR, SR. ADVOCATE WITH MR. MONAAL J. DAVAWALA AND MRS SWATI SOPARKAR, ADVOCATES ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. In all these Tax Appeals, the assessee is the same and therefore, they are decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT (A) in deleting the penalty of ₹ 2,38,44,898/- levied u/s.271(1)(c) of the Act, when the quantum additions made were confirmed ? 4. For the purpose of this judgment, Tax Appeal No.1905/2008 is taken as the lead matter. 5. Briefly stated, the facts are that the assessee herein is a closely held company and is a wholly owned subsidiary of another company, named, Parle (Exports) Ldt. It forms part and parcel of Parle Group of companies. During the year relevant to A.Y. 1994-95, the assessee sold its business relating to manufacturing of concentrates for softdrinks, processing information for beverage base, Goodwill and Copyrights to CocaCola ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the documents on record. 9. Mr. Nitin Mehta, learned Standing Counsel for the Revenue, submitted that in view of the amended provisions of Section 55(2), capital gains on the transfer of Goodwill becomes chargeable to tax. The assessee had not given the basis of the valuation of Goodwill though the assessee was specifically asked for by the A.O. The A.O., therefore, was of the opinion that value of Goodwill shown by the assessee was incorrect and revalued the sale consideration of Goodwill and Trademark. Consequently, the consideration of Goodwill and Trademark, as shown in the Agreement, was added and the average of both was worked out to arrive at the appropriate value of the Goodwill and Trademark on equal basis. He, therefore, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2012] 341 ITR 01 (SC). (b) Mangalore Ganesh Beedi Works v. Commissioner of Incometax, Mysore, [2015] 378 ITR 640 (SC). 11. We have heard learned counsel for both the sides and perused the documents on record. It is an undisputed fact that all transactions were supported by duly executed legal Agreements, having been acted by both the parties. Under the circumstances, the Revenue had no right or legal justification to doubt its genuineness, particularly when, there was no material on record to support the stand of Revenue. 12. In the case of Mangalore Ganesh Beedi Works (supra) , the Apex Court has categorically held that the I.T. Act does not clothe the taxing authorities with any power or jurisdiction to rewrite the terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
