MANISH G. MEHTA, MUMBAI V. DCIT CC 7, MUMBAI

ITA 2331/MUM/2011

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2681 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 29-07-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 22-03-2011
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGH
• Section: 143(3); 153A; 132

Judgement Text

IN THE INCO ME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD , JUDICIAL MEMBER I.T.A. NO. 2331/M/2011 (ASSESSMENT YEAR :2002 - 2003 ) SHRI MANISH G. MEHTA, C/O. M/S. FREE INDIA ASSURANCE SERVICES LTD., 209, 2 ND FLOOR, PRIME PLAZA, J.V. PATEL COMPOUND, B.M. ROAD, ELPHINSTONE (W), MUMBAI 013. / VS. DCIT, CENTRAL CIRCLE - 7, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 020. ./ PAN : AHNPM2915N ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI DARSHAN GANDHI, / RESPONDENT BY : MISS ANUPAMA SINGH, DR / DATE OF HEARING : 08.09 .2016 / DATE OF PRONOUNCEMENT : 23 .09 .2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON22.3.2011 IS AGAINST THE ORDER OF THE CIT (A) - 28, MUMBAI IN CONNECTION WITH THE PENALTIES LEVIED BY THE AO U/S 271(1)(C) OF THE ACT. 2. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE, WHO IS AN INDIVIDUAL, FILED THE RETURN OF INCOME ORIGINALLY U/S 139(1) OF THE ACT. HOWEVER, IN PURSUANCE TO THE PROCEEDINGS U/S 132 R.W.S 153A OF THE ACT, ASSESSEE FILED THE RETURN OF INCOME DECLARI NG THE TOTAL INCOME OF RS. 9,94,201/ - . THE SAID RETURN OF INCOME WAS ACCEPTED BY THE AO AND THE ASSESSMENT WAS COMPLETED U/S 143(3) READ WITH SECTION 153A OF THE ACT. HOWEVER, AO LEVIED THE PENALTY U/S 271(1)(C) OF THE ACT IN RESPECT OF THE SAID TOTAL IN COME ASSESSED BY THE AO. MATTER TRAVELLED TO THE FIRST APPELLATE AUTHORITY AND THE CIT (A) DISMISSED THE APPEAL. AGGRIEVED, ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRIBUNAL. 2 3. BEFORE US, AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE ORDER OF THE TRIBUNAL IN THE CASE OF SMT. PUSHPA G. MEHTA, L/H OF LATE ASHISH G. MEHTA , WHO IS THE BROTHER OF THE ASSESSEE. BRINGING OUR ATTENTION TO THE FACTS OF THE SAID CASE, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT UNDER SIMILAR CIRCUMSTANCES , THE PENALTY WAS DELETED. IN SUPPORT OF THE SAME, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO PARA 6 OF THE SAID TRIBUNALS ORDER IN ITA NO.2334/M/2011 (2002 - 2003), DATED 2.1.2013. 4. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE SAID ORDER OF THE TRIBUNAL (SUPRA) IN THE CASE OF SMT. PUSHPA G. METHA, WE FIND THE FACTS ARE COMPARABLE. PARA 6 OF THE SAID TRIBUNALS ORDER (SUPRA) IS RELEVANT IN THIS REGARD. CONSIDERING THE SIGNIFICANCE OF TH E PARA 6 OF THE SAID TRIBUNALS ORDER (SUPRA) AND FOR THE SAKE OF COMPLETENESS OF THIS ORDER, THE SAME IS EXTRACTED AS UNDER: - 6. IN THE CASE BEFORE US, WE OBSERVE THAT THE ASSESSEE FILED THE RETURN U/S 153A OF THE ACT VOLUNTARILY DECLARING THE EXCESS INC OME AND THE AO ASSESSED THE INCOME AS DECLARED BY THE ASSESSEE IN THE RETURN FILED. FURTHER, IT IS NOT THE CASE OF THE DEPARTMENT THAT THE EXCESS INCOME DECLARED BY THE ASSESSEE IN THE RETURN FILED U/S 153A VIZ - A - VIZ THE RETURN OF INCOME FILED U/S 139(1) IS IN PURSUANCE TO ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. WE ARE OF THE CONSIDERED VIEW THAT THE LEVY OF PENALTY U/S 271(1)(C) IS NOT JUSTIFIED. HENCE, WE CANCEL THE PENALTY BY ALLOWING THE GROUND OF APPEAL TAKEN BY THE ASSESSEE. 5 . CONSIDERING THE ABOVE SETTLED POSITION OF THE ISSUE ON IDENTICAL FACTS, WE ARE OF THE OPINION, THERE IS NO CASE FOR LEVY OF PENALTY IN THE PRESENT CASE. HENCE, WE RESPECTFULLY FOLLOWING THE SAID DECISION OF THE TRIBUNAL ALLOW THE GROUNDS RAISED BY THE A SSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUN CED IN THE OPEN COURT ON 2 3 R D SEPTEMBER, 2016. S D / - S D / - ( RAVISH SOOD ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 2 3 .9 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 3 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI