ACIT CC-39, MUMBAI V. RAIMA REALTY P. LTD, MUMBAI

ITA 1821/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3816 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAMCHANDRAN
• Assessee Lawyers: RAMESH JAIN
• Keywords: Search and seizure
• Section: 69; 132

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI . . , !' , # , $ BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND AMARJIT SINGH, JUDICIAL MEMBER / I .T.A. NO.1821/MUM/2014 ( # % &% / ASSESSMENT YEAR: 2009-10) ASST. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 39 R.NO.32(1), GROUND FLOOR, AAYAKAR BHAVAN, MUMBAI - 400020 / VS. M/S. RAIMA REALTY PVT. LT D. OFFICE NO.B 106, SECTOR -11, DRONAGIRI - 400702 ./ ./ PAN/GIR NO. : AADCR4570Q ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY: SHRI ANUJ KISNADWALA & RAMESH JAIN DEPARTMENT BY: SHRI A. RAMCHANDRAN / DATE OF HEARING: 07.09.2015 /DATE OF PRONOUNCEMENT: 24.02.2016 ! / O R D E R PER AMARJIT SINGH, JM: THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER DATED 18.12.2013 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-41, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RE LEVANT TO THE ASSESSMENT YEAR 2009-10 WHEREIN THE PENALTY IMPOSED U/S. 271AAA HAS BEEN ORDERED TO BE DELETED. ITA NO.1821/MUM/2014 ASSESSMENT YEAR: 2009-10 2 2. THE ASSESSEE BELONGS TO JAI CORPORATION GROUP OF CASES. JAI CORPORATION GROUP IS A PARTNER IN TWO MAJOR UPCOMIN G SPECIAL ECONOMIC ZONES (SEZ), BEING DEVELOPED IN THE VICINI TY OF MUMBAI, VIZ. NAVI MUMBAI SPECIAL ECONOMIC ZONE (NMSEZ) AND MUMBA I SPECIAL ECONOMIC ZONE (MSEZ). THE GROUP HAS PURCHASED VAST TRACTS OF LAND IN THE VICINITY TO THESE SEZS WITH AN OBJECTIVE TO DEVELOP THE LANDS INTO SATELLITE TOWNSHIPS IN THESE AREAS WITH NECESSARY A MENITIES AND INFRASTRUCTURE ANTICIPATING POTENTIAL PRICE RISE AN D GOOD RETURNS FOR THEIR INVESTMENT IN FUTURE. THESE LANDS HAVE BEEN PURCHA SED IN THE NAMES OF ABOUT 100 COMPANIES INCLUDING THE APPELLANT. THE R EAL ESTATE OPERATIONS OF THE GROUP ARE HANDLED BY MR. VIRENDRA JAIN, MR. GAURAV JAIN AND MR. DILIP DHERAI. ON 05.03.2009 SEARCH AND SEIZURE OPE RATION U/S. 132 OF THE INCOME TAX ACT, 1961( IN SHORT THE ACT) WAS C ARRIED AT THE OFFICE PREMISES OF THE GROUP AND ITS CLOSE ASSOCIATES AND RESIDENTIAL PREMISES. DURING THE SEARCH AND SEIZURE OPERATION AN UNEXPLAI NED EXPENDITURE TO THE TUNE OF RS.43.46 CRORES WAS ESTIMATED AND APPOR TIONED AMONG ALL LAND COMPANIES AND IN CASE OF ASSESSEE ADDITION TO THE TUNE OF RS.1,89,56,000/- WAS MADE U/S. 69 OF THE ACT. THE SAID ADDITION WAS CONFIRMED UPTO THE ORDER PASSED BY LEARNED CIT(A) D ATED 01.11.2011. THEREAFTER, SHOW CAUSE NOTICE WAS SERVED AND PENALT Y TO THE TUNE OF RS.18,95,600 WAS IMPOSED U/S. 271AAA. ON APPEAL LE ARNED CIT(A) HEARD THE CASE ON MERITS AND DELETED THE PENALTY IM POSED U/S. 271AAA OF THE ACT. FEELING AGGRIEVED THE REVENUE IS BEFOR E US. 3. WE HAVE HEARD THE ARGUMENTS ADVANCED BY THE LEAR NED REPRESENTATIVE OF THE PARTIES AND PERUSED THE RECOR D CAREFULLY. THE ITA NO.1821/MUM/2014 ASSESSMENT YEAR: 2009-10 3 LEARNED REPRESENTATIVE OF THE DEPARTMENT HAS ARGUED THAT THE LEARNED CIT(A) HAS DELETED THE PENALTY TO THE TUNE OF RS.18 ,95,600/- IMPOSED U/S. 271AAA IS WRONGLY AND ILLEGALLY, THEREFORE, TH E ORDER DATED 18.12.2013 IS WRONG AGAINST LAW AND FACTS AND IS LI ABLE TO BE SET ASIDE. ON THE OTHER HAND THE LEARNED REPRESENTATIVE OF THE ASSESSEE REFUTED THE SAID CONTENTIONS. KEEPING IN VIEW OF THE ARGUMENTS ADVANCED BY THE LEARNED REPRESENTATIVE OF THE PARTIES AND PERUSING THE RECORD CAREFULLY, IT IS OBSERVED THAT LEARNED CIT(A) HAS DELETED THE PEN ALTY IMPOSED BY THE ASSESSING OFFICER U/S. 271AAA ON THE GROUND OF THAT THE TRIBUNAL VIDE ITS ORDER DATED 22.03.2013 HAS SET ASIDE THE ASSESS MENT U/S. 153C AND ALSO DELETED THE ADDITION MADE U/S. 69C. WHEN THE ASSESSMENT PROCEEDING GIVING RISE TO PENALTY U/S. 271AAA HAS B EEN QUASHED BY THE TRIBUNAL, THEREFORE, THE LEARNED CIT(A) HAS RIGHTLY DELETED THE PENALTY IMPOSED U/S. 271AAA OF THE ACT. IN VIEW OF THE SAI D CIRCUMSTANCES WE ARE OF THE VIEW THAT THE LEARNED CIT(A) HAS PASSED THE ORDER DATED 18.12.2013 IN QUESTION JUDICIOUSLY AND CORRECTLY WH ICH DOES NOT REQUIRED TO BE INTERFERE WITH AT THIS APPELLATE STA GE. 4. IN RESULT THE APPEAL OF THE REVENUE IS HEREBY DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH FEBRUARY, 2016 SD/- SD/- (B.R.BASKARAN) (AMARJIT SINGH) / ACCOUNTANT MEMBER #$ /JUDICIAL MEMBER % & MUMBAI; ' DATED : 24TH FEBRUARY, 2016 MP MP MP MP ITA NO.1821/MUM/2014 ASSESSMENT YEAR: 2009-10 4 ' ( )# !* +*& / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ( ) / THE CIT(A)- 4. ( / CIT 5. )*+ $$,- , ,- , % & / DR, ITAT, MUMBAI 6. +./ 0 / GUARD FILE. ' / BY ORDER, ) $ //TRUE COPY// , / ' (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI