Trade Centre Developers and Builders Pvt.Ltd, Pune V. Deputy Commissioner of Income-tax, Circle - 7, Pune

ITA 2312/PUN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4756 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 03-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA B DOND
• Keywords: Reasonable cause
• Section: 271(1)(c); 274; 113; 73

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER I.T.A. NO. 2311 AND 2312/PUN/2017 ASSESSMENT YEAR S : 2001 - 02 & 2003 - 04 TRADE CENTRE DEVELOPERS & BUILDE RS PVT. LTD., 3 / 4 PARMAR CHAMBERS, SADHU VASWANI CHOWK, PUNE - 411 001 PAN : AAACT 6847M APPELLANT VS. THE DY. COMMISSIONER OF INCOME TAX , CIRCLE 7, PUNE RESPONDENT APPELLANT BY : SHRI RAJIV THAKKAR RESPONDENT BY : SHRI RAJENDRA B. DOND DATE OF HEARING : 17 - 02 - 2020 DATE OF PRONOUNCEMENT: 18 - 02 - 2020 ORDER PER GEORGE MATHAN, JUDICIAL MEMBER: TH E SE ARE TWO APPEALS FILED BY THE ASSESSEE AGAINST ORDERS OF THE LEARNED CIT(A) PUNE - 5, PUNE IN APPEAL NO. PN/CIT(A) - 5/DY.CIT CIR.7, P UNE/206/2014 - 15 FOR A.Y. 2001 - 02 AND PN/CIT(A)/DY. CIT, CIR. 7, PUNE/205/2014 - 15 FOR A.Y. 2003 - 04 BOTH DATED 30 - 6 - 2017. 2. SHRI RAJIV THAKKAR, IS REPRESENTED FOR THE ASSESSEE AND SHRI RAJENDRA B. DOND IS REPRESENTED FOR THE REVENUE. ITA NO. 2 311 & 2312/PUN/2017 TRADE CENTRE DEVELOPERS AND BUILDERS PVT. LTD. PUNE 2 3. IT WAS SUBMITTED BY THE LEARNED A.R. THAT THE APPEALS ARE AGAINST THE ACTION OF THE LEARNED CIT(A) IN CONFIRMING THE PENALTY LEVIED U/S 271(1)(C) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). THE LEARNED A.R. DREW OUR ATTENTION TO THE ASSESSMENT ORD ERS FOR BOTH THE ASSESSMENT YEARS WHEREIN IT HAS BEEN MENTIONED BY THE LEARNED A.O. THAT PENALTY U/S 271(1)(C) IS INITIATED FOR FURNISHING OF I NACCURATE PARTICULARS OF INCOME . THE LEARNED A.R FURTHER DREW OUR ATTENTION TO NOTICE ISSUED U/S 274 READ WITH SEC. SEC. 271 OF THE ACT WHEREIN THE LEARNED A.O HAS UNDERLINED INACCURATE PARTICULARS OF SUCH INCOME . IT WAS HIS SUBMISSION THAT PENALTY HAS BEEN INITIATED BY THE A.O FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME ON THE ASSESSEE. THE LEARNED A.R F URTHER DREW OUR ATTENTION TO THE ORDER PASSED U/S 271(1)(C) OF THE ACT FOR THE TWO ASSESSMENT YEARS WHEREIN THE A.O STATED THAT IN VIEW OF THE ABOVE DISCUSSION AND KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE, I AM SATISFIED THAT THE ASSESSEE, WITHOUT SUFFICIENT AND REASONABLE CAUSE, UNDER THE DELIBERATE INTENTION CONCEALED ITS INCOME BY FURNISHING ACCURATE PARTICULARS OF INCOME HAS COMMITTED DEFAULT W ITHIN THE MEANING OF SEC. 271(1) (C) OF THE ACT AND IS LIABLE FOR PENAL ACTION . IT WAS HIS SU BMISSION THAT THE PENALTY HAS BEEN LEVIED BY THE A.O FOR CONCEALMENT OF INCOME. IT WAS SUBMITTED BY THE LEARNED A.R. THAT IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. SSAS EMARALD MEADOW REPORTED AT (2016) 73 TAXMANN.COM 24 8 (SC), AS ALSO THE DECISION OF HONBLE HIGH COURT OF BOMBAY IN THE CASE OF PRINCIPAL C.I.T. (CENRAL) BANGALURU VS. GOA COASTAL RESORTS AND RECREATION (P) LTD. R EPORTED AT (2020) 113 TAXMANN.COM 574 (BOMBAY) AS ALSO THE DECISION OF CO - ORDINATE BENCH OF THI S TRIBUNAL IN ITA NO. 1718/PUN/2017 AND OTHERS DATED 19 - 07 - 2019, PENALTY AS LEVIED BY THE A.O AND CONFIRMED BY THE LEARNED CIT(A) WAS LIABLE TO BE DELETED. ITA NO. 2 311 & 2312/PUN/2017 TRADE CENTRE DEVELOPERS AND BUILDERS PVT. LTD. PUNE 3 4. IN REPLY, THE LEARNED D.R HAS VEHEMENTLY SUPPORTED ORDERS OF THE A.O AND THE CIT(A). IT WAS HI S SUBMISSION THAT THE PENALTY AS CONFIRMED BY THE LEARNED CIT(A) WAS LIABLE TO BE CONFIRMED. 5 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. A PERUSAL OF THE ASSESSMENT ORDERS CLEARLY SHOWS THAT THE A.O HAS INITIATED THE PENALTY PROCEEDING S FOR FURNISHING OF INACCURATE PARTICULARS. HOWEVER, THE PENALTY HAS BEEN LEVIED FOR CONCEALMENT OF INCOME. THUS, THE A.O HAS INITIATED PENALTY FOR ONE REASON BUT HAS LEVIED THE PENALTY FOR ANOTHER. SUCH PENALTY CANNOT BE CONFIRMED IN VIEW OF THE HON BLE SUPREME COURT JUDGMENT IN THE CASE OF SSAS EMERALD MEADOWS (SUPRA) AS ALSO THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GOA COASTAL RESORTS AND RECREATION (P) LTD (SUPRA). THIS BEING SO RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF SSAS EMERALD MEADOWS (SUPRA), AS ALSO THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GOA COASTAL RESORTS AND RECREATION (P) LTD (SUPRA) AND ALSO DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL C ITED SUPRA, THE PENALTY LEVIED BY THE A.O AND CONFIRMED BY THE LEARNED CIT(A) STANDS DELETED. 6 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 18 TH DAY OF FEBRUARY 20 20 . S D/ - SD/ - ( ANIL CHATURVEDI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE ; DATED : 18 TH FEBRUARY 2020 . ANKAM ITA NO. 2 311 & 2312/PUN/2017 TRADE CENTRE DEVELOPERS AND BUILDERS PVT. LTD. PUNE 4 COPY OF THE ORDER IS FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CCIT PUNE 4. THE PR. CCIT PUNE 5. THE AD DL. VCIT RANGE 7, PUNE 6. THE ASSESSING OFFICER 7. THE D.R. ITAT PUNE BENCH B 8. GUARD FILE TRUE COPY BY ORDER SR. PRIVATE SECRETARY ITAT PUNE BENCH, PUNE ITA NO. 2 311 & 2312/PUN/2017 TRADE CENTRE DEVELOPERS AND BUILDERS PVT. LTD. PUNE 5 1 DRAFT DICTATED ON 1 7 . 02 .20 20 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 1 7 . 02 .20 20 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER 18 - 02 - 2020 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 18 - 02 - 2020 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/ PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER