ITO-21(1)(4), MUMBAI V. PREMLATA L. SINGH, MUMBAI

ITA 1446/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3576 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 02-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R DWIVEDI
• Section: 144

Judgement Text

ITA NO.1446/M/2 012 PREMLATA L. SINGH. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH, MUMBAI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 1446/MUM/2012 (ASSESSMENT YEAR: 2007-08) ITO 21(1)(4) C-10, 6 TH FLOOR, R.NO.606, PRATYAKSHAKAR BHAVAN, BKC, BANDRA(E), MUMBAI 400051 VS. PREMLATA L.SINGH 204, ALPA BUILDING, ST. FRANCIS ROAD, VILE PARLE(W), MUMBAI- 400056 PAN: BAYPS6844R (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI R. DWIVEDI (DR) DEPARTMENT BY: NONE DATE OF HEARING: 06/06/2013 DATE OF PRONOUNCEMENT: 21/06/ 2013 O R D E R PER R.S. SYAL, A.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 08.12.2011 DELETING THE PENALTY OF RS . 27,68,155/- IMPOSED BY THE AO U/S 271(1) (C) OF THE INCOME-TAX ACT (HER EINAFTER CALLED `THE ACT) IN RELATION TO THE ASSESSMENT YEAR 2007-08. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSEE IS MORE THAN 70 YEARS OLD SENIOR CITIZEN LADY. HER ASSESSME NT WAS COMPLETED U/S 144 OF THE ACT MAKING ADDITIONS ON ACCOUNT OF RENT PAID AND CERTAIN DISALLOWANCES AT A PARTICULAR PERCENTAGE FROM SALAR Y AND WAGES, CONVENIENCE AND TELEPHONE EXPENSES. ON THAT BASIS, THE AO IMPOSED PENALTY U/S 271(1)(C). THE LD. CIT(A) OBSERVED THAT THE DISALLOWANCE ON ACCOUNT OF RENT PAID OF RS. 44.47 LACS STOOD DELETE D IN THE QUANTUM APPEAL AND THE OTHER AD HOC DISALLOWANCES WERE REDUCED. CONSIDERING THIS FACTUAL SCENARIO, THE LD. CIT(A) ORDERED FOR THE DE LETION OF PENALTY OF RS. 27.68 LACS. ITA NO.1446/M/2 012 PREMLATA L. SINGH. PAGE 2 OF 4 3. WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT M ATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF AS SESSEE DESPITE NOTICE. IT IS OBSERVED THAT AFTER THE DELETION OF RENT PAID, T HERE REMAIN CERTAIN DISALLOWANCES OF EXPENSES WHICH WERE MADE BY THE AO ON AD HOC BASIS WHICH WERE FURTHER REDUCED IN THE FIRST APPEAL. IT IS A TRITE LAW THAT NO PENALTY CAN BE IMPOSED U/S 271(1)(C) WHEN INCOME IS DETERMINED ON ESTIMATE BASIS. BE THAT AS IT MAY, IT IS SEEN THAT THE DISALLOWANCES OUT OF CERTAIN EXPENSES, FORMING FOUNDATION FOR THE IMPOSI TION OF THE PENALTY, WERE MADE ON AD HOC BASIS. THERE IS NO POSITIVE FINDING THAT THE ASSES SEE CONCEALED OR FURNISHED INACCURATE PARTICULARS OF HE R INCOME. THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. RELIANCE PETRO PRODUCTS PVT. LTD. (2010) 322 ITR 158 (SC) HAS HELD THAT MERE MAKING OF A CLAIM WHICH IS NOT SUSTAINABLE IN LAW, BY ITSELF, DOES NOT ATTRACT PEN ALTY UNDER THIS SECTION. UNDER THE GIVEN CIRCUMSTANCES, WE ARE OF THE CONSID ERED OPINION THAT THE LD. CIT(A) HAS TAKEN AN UNIMPEACHABLE VIEW IN DELET ING THE PENALTY. WE, THEREFORE, ECHO THE SAME. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JUNE, 2013 SD/- SD/- (DR. S.T.M. PAVALAN) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 21 ST JUNE, 2013. SK ITA NO.1446/M/2 012 PREMLATA L. SINGH. PAGE 3 OF 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI