ITO-32(1)(5), MUMBAI V. GAURANG VINODRAI MEHTA, MUMBAI

ITA 1533/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4879 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA
• Assessee Lawyers: GAURANG MEHTA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , G BENCH MUMBAI BEFORE : SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI M.BALAGANESH, A CCOUNTANT MEMBER ITA NO. 1533 /MUM/ 20 20 ( ASSESSMENT YEAR : 2010 - 11 ) INCOME TAX OFFICER - 32(1)(5), ROOM NO.729, 7 TH FLOOR KAUTILYA BHAVAN BANDRA KURLA COMPLEX BANDRA (E) MUMBAI 400 051 VS. SHRI GAURANG VINODRAI MEHTA A - 401, RAJ ANMOL - 2, LAXMAN MAHATRA ROAD BORIVALI WEST MUMBAI 400 103 PAN/GIR NO. AETPM9315B (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI T.S.KHALSA ASSESSEE BY SHRI GAURANG MEHTA DATE OF HEARING 29 /0 9 /2021 DATE OF PRONOUNCEMENT 29 / 09 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 1533/MUM/2020 FOR A.Y. 2010 - 11 ARISES OUT OF THE ORDER BY THE LD. COMMISSIO NER OF INCOME TAX (APPEALS) - 44, MUMBAI IN APPEAL NO. ITBA/APL/S/250/2019 - 20/1023722884(1) DATED 09/01/2020 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) . ITA NO . 1533/MUM/2020 M/S. GAURANG VINODRAI MEHTA 2 2. WE HAVE H EARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF BOG US PURCHASES WAS DELETED BY THE LD. CIT(A) ON THE PRIMARY GROUND THAT NO PENALTY WOULD SURVIVE ON AN ESTIMATED ADDITION. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. WE FIND AT THE OUTSET, THE LD AR ARGUED THAT PENALTY THAT IS IN DISPUTE BEFORE US, F ALLS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT IN ITS CIRCULAR NO. 17/2019 DATED 08/08/2019 FOR PREFERRING APPEAL BY THE REVENUE BEFORE THIS TRIBUNAL. WE FIND THAT THE LD. DR VEHEMENTLY ARGUED THAT THE SAID CASE FALLS WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCORDINGLY HE ARGUED THAT THE APPEAL IS MAINTAINABLE. WE FIND THAT THE EXCEPTION PROVIDED IN PARA 10(E) OF THE CIRCULAR 17/2019 DATED 08/08/2019 IS APPLICABLE ONLY FOR THE QUANTUM PROCEEDINGS AND THE SAME CANNOT BE MA DE APPLICABLE FOR PENALTY PROCEEDINGS. IT IS WELL SETTLED THAT PENALTY AND QUANTUM ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. ACCORDINGLY, WE DISMISS THIS APPEAL OF THE REVENUE BY FOLLOWING THE AFORESAID CIRCULAR NO.17/2019 DATED 08/08/2019 AND HOLD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 29/09/2021. SD/ - ( SAKTIJIT DEY ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUN TANT MEMBER MUMBAI ; DATED 29 / 09 / 2021 KARUNA , SR.PS ITA NO . 1533/MUM/2020 M/S. GAURANG VINODRAI MEHTA 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//