DCIT, CENTRAL CIRCLE 8(4), MUMBAI, MUMBAI V. AURUM PLATZ PRIVATE LIMITED, NAVI MUMBAI

ITA 2333/MUM/2025

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A) which deleted the penalty imposed by the Assessing Officer on Aurum Platz Private Limited for the assessment year 2018-19. The penalty was initially levied following the assessment order which included substantial additions to the taxable income of the company. However, these additions were later deleted by the Tribunal, and the disallowance under section 14A was reduced. The revenue's appeal was primarily based on the pending appeal before the Hon'ble High Court regarding the deletion of the quantum addition by the ITAT. The Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decision to delete the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705669 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV; DR
• Assessee Lawyers: MEET SHAH; AR
• Keywords: Business income; Capital Gains
• Section: 143(3); 69C; 14A

Judgement Text

" | आयकर अपील य अ धकरण यायपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 2333/Mum/2025 Assessment Year: 2018-19 DCIT, Central Circle – 8(4), Mumbai Vs Aurum Platz Private Limited Gen 4/1, Industrial Area Thane Belapur Road Navi Mumbai Ghansoli, Navi Mumbai Maharashtra - 400710 [PAN: AACCK2851Q] अपीलाथ\u0012/ (Appellant) \u0014\u0015 यथ\u0012/ (Respondent) Assessee by : Shri Meet Shah, A/R Revenue by : Shri Rajesh Kumar Yadav, CIT, D/R सुनवाई क तार ख/Date of Hearing : 30/06/2025 घोषणा क तार ख /Date of Pronouncement: 02/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the revenue is preferred against the order of the ld. CIT(A)-50, Mumbai [hereinafter “the ld. CIT(A)”] dated 06/02/2025 pertaining to AY 2018-19. 2. The grievance of the revenue read as under:- “1. On facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty levied by the Assessing Officer, as the appeal is pending before the Hon’ble High Court against the deletion of quantum addition by Hon’ble ITAT. 2. The appellant craves leave to add to, alter, amend, modify and/or delete any or all of the above said grounds of appeal, the appellant reserves its right to file further submissions in the appeal.” I.T.A. No. 2333/Mum/2025 2 3. A bare perusal of the aforementioned grounds shows that this appeal by the revenue has to be dismissed for the simple reason that the quantum addition deleted by the Tribunal has been appealed before the Hon’ble High Court. The Hon’ble High Court has neither stayed the operation of the order of the Tribunal, nor barred the Tribunal to decide the issues relating to the penalty. Therefore, on the ground stated above, the appeal deserves to be dismissed. 4. However, on merits of the case, the roots for the levy of penalty lie in the assessment order dated 30/12/2019 framed u/s 143(3) of the Act by which the AO computed the total taxable income at Rs. 22,27,42,921/- after computing the business income at Rs. 20,10,52,047/- , addition u/s 69C of the Act Rs. 20,00,000/- and disallowance u/s 14A Rs. 1,96,90,874/-. The additions travelled up to the Tribunal and the Tribunal in ITA Nos. 2004 & 2005/Mum/2021 vide order dated 20/06/2023, has deleted the additions on account of classification of capital gains as business income of Rs. 20,10,52,047/- and also deleted the addition of Rs. 20,00,000/- made u/s 69C of the Act and further restricted the disallowance made u/s 14A of the Act amounting to Rs.1,96,90,874/- to Rs.3,62,500/-. 5. Since the substantive additions have been deleted and the disallowance u/s 14A of the Act has been estimated at Rs. 3,62,500/-, the ld. CIT(A) deleted the penalty levied by the AO on such disallowance. I.T.A. No. 2333/Mum/2025 3 6. Considering the facts of the case in totality as discussed hereinabove, we do not find any error or infirmity in the findings of the ld. CIT(A). 7. In the result, appeal of the revenue is dismissed. Order pronounced in the Court on 2nd July, 2025 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 02/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश क \u0016\u0017त\u0018ल\u001aप अ े\u001aषत /Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u0016\"यथ! / The Respondent 3. संबं&धत आयकर आयु(त / Concerned Pr. CIT 4. आयकर आयु(त ) अपील ( / The CIT(A)- 5. \u001aवभागीय \u0016\u0017त\u0017न&ध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड. फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपील य अ&धकरण ITAT, Mumbai "