INCOME TAX OFFICER 41(2)(4), MUMBAI, MUMBAI V. RAMESH JAMNADAS THAKKAR, MUMBAI

ITA 2174/MUM/2025

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A), National Faceless Appeal Centre, which had allowed the appeal of the assessee, Ramesh Jamnadas Thakkar. The Revenue challenged the CIT(A)'s decision on grounds related to transactions involving penny stocks and unexplained income from other sources. The original assessment added a sum of Rs. 4,53,849 as income from other sources under section 68, which was contested and eventually deleted by the Tribunal in a prior appeal. Consequently, the Tribunal in the present case dismissed the Revenue's appeal, leading to the non-survival of the penalty imposed on the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713258 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 271(1)(c); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 2174/MUM/2025 Assessment Year: 2012-13 Income tax officer - 41(2)(4), Mumbai Vs. Ramesh Jamnadas Thakkar 51, Moti Sagar, 3rd Floor, Ganesh Gawde Road, Mulund (West), Mumbai - 400080 (PAN : AABPT4367L) (Appellant) (Respondent) Present for: Assessee : Shri Mitul Doshi,CA Revenue : Shri Annavaran Kosuri, Sr. DR Date of Hearing : 22.07.2025 Date of Pronouncement : 31.07.2025 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the Revenue is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide order no. ITBA/NFAC/S/250/2024-25/1072797898(1), dated 31.01.2025 passed against the assessment order by the National Faceless Assessment Centre, Delhi, u/s. 271(1)(c) of the Income-tax Act (hereinafter referred to as the “Act”), dated 29.12.2021 for Assessment Year 2012-13. 2. Grounds taken by the Revenue are reproduced as under: Printed from counselvise.com 2 ITA No.2174/MUM/2025 Ramesh Jamnadas Thakkar AY 2012-13 “1. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in allowing the appeal of the assessee despite the fact that the assessee is one ofthe beneficiaries in the transactions of sale and purchase of scrip of M/s. Divine Multimedia (India) Ltd. (penny stock). 2. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in allowing the appeal of the assessee despite the fact that the assessee failed to satisfactorily explain the account of income from other sources u/s 68. 3. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in allowing the appeal of the assessee despite the fact that BSE limited has confirmed the transactions and provided the details of assessee that shares of M/s. Divine Multimedia (India) Ltd. were purchased and the same were sold in A.Y 2012-13, resulting in difference of Rs.4,53,849/-.” 3. The present appeal is in respect of levy of penalty of Rs. 83,324/- u/s. 271(1)(c). On merits, an addition of Rs. 4,53,849/- was made on account of sale of shares claimed as long term capital gain which was added u/s. 68 in the assessment completed u/s. 147 r.w.s 143(3). Ld. AO had made an addition of this amount alleging the assessee being one of the beneficiary of accommodation entry by way of trading in penny stock scrip. Matter went upto the Tribunal in ITA No. 823/Mum/2022. Co-ordinate bench on dealing with the merits of the case, deleted the addition so made and allowed the appeal of the assessee vide order dated 29.11.2022. In the present case, it is penalty which has been imposed on the addition made by the ld. AO which has been deleted by the co-ordinate bench as aforesaid. Since the very foundation on which the penalty was levied has been eroded by way of allowing the appeal of the assessee by the co-ordinate bench, the penalty so imposed does not survive. Printed from counselvise.com 3 ITA No.2174/MUM/2025 Ramesh Jamnadas Thakkar AY 2012-13 4. In the result, appeal of the Revenue is dismissed. Order is pronounced in the open court on 31 July, 2025 Sd/- Sd/- (Sandeep Gosain) (Girish Agrawal) Judicial Member Accountant Member Dated: 31 July, 2025 Anandi. Nambi, Steno. Copy to : 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 5 Guard File CIT BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai Printed from counselvise.com "