SHAKTI PROEPRTY DEVELOPERS P. LTD, MUMBAI V. DCIT CEN CIR 8(1), MUMBAI

ITA 1/MUM/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7916 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 01-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA L D
• Assessee Lawyers: KIRIT SANGHAVILD
• Section: 271(1)(c)

Judgement Text

ITA NO.01/MUM/2018 SHAKTI PROPERTY DEVELOPERS P. LTD. ASSESSMENT YEAR: 2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.01/MUM/2018 ( / ASSESSMENT YEAR: 2013-14) SHAKTI PROPERTY DEVELOPERS PVT . LTD. 27/28, P WING, SHARDA VIHAR SHAKTI COMPLEX, CHARKOP KANDIVALI (W), MUMBAI-400 067. / VS. D CIT - CIRCLE - 8 (1) CPWD BUILDING, M.K. ROAD NEW MARINE LINES MUMBAI-400 020. !' ./ ./PAN/GIR NO. AAECS-8479-E ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : SHRI KIRIT SANGHAVI-LD. AR REVENUE BY : SHRI T.S. KHALSA- LD. DR / DATE OF HEARING : 14/01/2021 / DATE OF PRONOUNCEMENT : 14/01/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THIS APPEAL FOR ASSESSMENT YEAR 2013-14, THE ASSESSEE IS AGGRIEVED BY LEVY OF PENALTY U/S 271(1)(C) FOR RS.7 7.53 LACS. THE SAME WAS INITIATED AS WELL AS LEVIED BY LD. COMMISS IONER OF INCOME TAX (APPEALS)-50, MUMBAI VIDE ORDER DATED 18 /09/2017 IN THE LIGHT OF ITS APPELLATE ORDER PASSED ON 30/03/20 17. 2.1 THE CHRONOLOGY OF THE EVENT IS THAT IN ASSESSME NT FRAMED U/S 143(3), THE ASSESSEE WAS SADDLED WITH ADDITION OF R S.57.62 LACS, ITA NO.01/MUM/2018 SHAKTI PROPERTY DEVELOPERS P. LTD. ASSESSMENT YEAR: 2013-14 2 BEING 20% OF ALLEGED ON-MONEY COMPONENT STATED TO B E RECEIVED BY THE ASSESSEE ON SALE OF CERTAIN FLATS DURING THE YEAR. UPON FURTHER APPEAL, LD. CIT(A) DELETED THE SAME BY OBSE RVING THAT LD. AO COULD NOT BRING ENOUGH EVIDENCE ON RECORD THAT T HE ASSESSEE RECEIVED ON-MONEY. AT THE SAME TIME, LD. CIT(A) PRO POSED AN ENHANCEMENT OF RS.258.43 LACS IN VIEW OF THE FACT T HAT THE ASSESSEE WAS REQUIRED TO FOLLOW PERCENTAGE OF COMPL ETION METHOD OF ACCOUNTING TO RECOGNIZE THE REVENUE. AFTER PERUS ING REQUISITE PROJECT DETAILS AS FURNISHED BY THE ASSESSEE, THE L D. CIT(A) ARRIVED AT PROJECT PROFITS OF RS.258.43 LACS AND PROPOSED T HE SAME IN ITS APPELLATE ORDER DATED 30/03/2017. 2.2 CONSEQUENTLY, PENALTY PROCEEDINGS WERE INITIATE D AGAINST THE ASSESSEE AND THE ASSESSEE WAS SADDLED WITH IMPUGNED PENALTY OF RS.77.53 LACS BY LD. CIT(A) VIDE PENALTY ORDER DATE D 18/09/2017. THE SAME IS THE SUBJECT MATTER OF APPEAL BEFORE US. 2.3 WE FIND THAT THE ASSESSEE ASSAILED THE ENHANCEM ENT AS PROPOSED IN APPELLATE ORDER BEFORE THIS TRIBUNAL VI DE ITA NO.5049/MUM/2017 ORDER DATED 19/02/2020. THE COORDI NATE BENCH, VIDE PARA-11 OF THE ORDER, DIRECTED LD. AO T O ESTIMATE THE PROFITS TO THE EXTENT OF SALES ACHIEVED BY THE ASSE SSEE DURING THE YEAR I.E. 1032 SQ. FT. AND ESTIMATE THE PROFITS AT RS.55.64 LACS. IT IS EVIDENT FROM THE ORDER THAT THE ENHANCEMENT AS PROP OSED BY LD. CIT(A) HAS SUBSTANTIALLY BEEN REDUCED AND IN PARA-1 2 OF THE ORDER, IT HAS BEEN OBSERVED THAT THE METHOD PROPOSED BY LD . CIT(A) IS NOT APPLICABLE TO THE PRESENT CASE. THIS BEING THE CASE , PENALTY U/S 271(1)(C) AS LEVIED BY LD. CIT(A) WOULD NOT SURVIVE . HOWEVER, SINCE LD. AO HAS BEEN DIRECTED TO ESTIMATE THE PROFITS IN CERTAIN MANNER ITA NO.01/MUM/2018 SHAKTI PROPERTY DEVELOPERS P. LTD. ASSESSMENT YEAR: 2013-14 3 AND THE ORDER OF THE TRIBUNAL WOULD CERTAINLY RESUL T INTO CERTAIN ADDITIONS IN THE HANDS OF THE ASSESSEE, LD. AO IS F REE TO INITIATE FRESH PENALTY PROCEEDINGS AGAINST THE ASSESSEE BASE D ON HIS ASSESSMENT ORDER, IF FOUND APPLICABLE. 3. THE APPEAL STAND ALLOWED IN TERMS OF OUR ABOVE O RDER. ORDER PRONOUNCED ON 14 TH JANUARY, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 14/01/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./% ( 0 , 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.