SHRI. SHANTILAL J SANGHAVI , MUMBAI V. ITO 17(3)(3) , MUMBAI

ITA 1288/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4193 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 25-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V VINOD KUMAR LD
• Assessee Lawyers: DHAWAL SHAH LD
• Keywords: Bogus purchase
• Section: 271(1)(c); 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 1288 /MUM/20 20 ( / ASSESSMENT YEAR : 20 09 - 10 ) SHRI SHANTILAL J. SANGHAVI SHOP NO. 17, BASEMENT 25C, SONARIKA BLDG, NANUBHAI DESAI ROAD C. P. TANK, MUMBAI - 400 004 / VS. ITO 17(3)(3) R. NO.111A, AAY KAR BHAVAN M. K. MARG, MUMBAI - 400 020 ./ ./ PAN/GIR NO . A QNPS - 6168 - C ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI DHAWAL SHAH LD. AR REVENUE BY : SHRI V. VINOD KUM AR LD. DR / DATE OF HEARING : 05/10 /2021 / DATE OF PRONOUNCEMENT : 05/10/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 20 09 - 10 ARISES OUT OF THE ORDER OF LD. COMMISSIONER OF INCOME - TAX ( APPEALS ) - 28, MUMBAI [ CIT(A)] D ATED 08/07/2019 WHICH HAS CONFIRMED THE PENALTY OF RS.74,800/ - U/S 271(1)(C) AS LEVIED BY LD. AO VIDE PENALTY ORDER DATED 21/03/2018. THE LD. AR SUBMITTED THAT PENALTY IS NOT SUSTAINABL E SINCE THE ADDITIONS ARE ESTIMATED ADDITIONS. THE LD. SR. DR, ON THE OTHER HAND, JUSTIFIED THE PENALTY ON THE FACTS OF THE CASE. 2 2. FACTS LEADING TO IMPOSITION OF PENALTY ARE THAT IN AN ASSESSMENT FRAMED U/S 143(3) R.W.S. 147 ON 27/02/2015, THE ASSESSEE W AS SADDLED WITH ADDITION OF ALLEGED BOGUS PURCHASES FOR RS.24.64 LACS. UPON FURTHER APPEAL, THE QUANTUM WAS ESTIMATED @10.12% OF RS.24.64 LACS. CONSEQUENTLY, PENALTY OF RS.74,800/ - WAS IMPOSED. THE PENALTY, UPON CONFIRMATION IN FIRST APPELLATE ORDER, IS IN FURTHER CHALLENGE BEFORE US. 3. IN OUR CONSIDERED OPINION, THE PENALTY IS NOT SUSTAINABLE SINCE THE ADDITIONS ARE MERE ESTIMATED ADDITIONS OF UNPROVED PURCHASES AND THEREFORE, NO CASE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INC OME COULD BE MADE OUT AGAINST THE ASSESSEE. THE SAME IS EVIDENT FROM THE FACT THAT THE ASSESSEE HAD FURNISHED PURCHASE INVOICES, DELIVERY CHALLANS AND CORRESPONDING SALES BILLS IN SUPPORT OF THE SUSPICIOUS PURCHASES. OUR AFORESAID VIEW IS DULY SUPPORTED BY THE ORDER OF HONBLE CHHATTISGARH HIGH COURT IN CIT V/S VIJAY KUMAR JAIN (325 ITR 378; 19/04/2010). THEREFORE, WE ARE INCLINED TO DELETE THE IMPUGNED PENALTY. 4. RESULTANTLY, THE APPEAL STAND ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 05 TH OCTOBER, 2021. SD/ - SD/ - (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 05/10/2021 SR.PS, DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE 3 / BY ORD ER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.