MR MAYUR P. JAIN, MUMBAI V. ITO-20(2)(2), MUMBAI

ITA 2619/MUM/2022

AI Insights

The case revolves around a penalty imposed on Mr. Mayur P. Jain by the Assessing Officer (AO) and confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)]. The penalty was levied due to an addition made under section 68 of the Income Tax Act, concerning an unsecured loan shown by the assessee from Smt. Pistaben Sohanraj Sonigra. The AO questioned the authenticity of the loan as the lender did not list the assessee as a debtor. The assessee contested that the loan was received in earlier years, supported by balance sheets from AY 2006-07 onwards. The Tribunal agreed with the assessee, stating that since the loan was received in earlier years, the provisions of section 68 could not be invoked for the assessment year in question, leading to the deletion of the penalty.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 125778 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-12-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 16-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEVENDRA B
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JM & SHRI S. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No. 2619/Mum/2022 (ननधधारणवर्ा / Assessment Year: 2012-13) Mr. Mayur P. Jain, 1170, Chaitya Tower Shivdas Marg, Mazgaon, Mumbai-400 010 बनाम/ Vs. ITO 20(2)(2) 212, 2 nd floor, Piramal Chambers, Lalbaug Parel, Mumbai-400 012 स्थधयीलेखधसं./जीआइआरसं./PAN No. AEGPJ1871E (अपीलधथी/Appellant) : (प्रत्यथी / Respondent) अपीलधथीकीओरसे/ Appellant by : Shri Devendra B. Harnesha, Ld. AR प्रत्यथीकीओरसे/Respondent by : Shri Ashish Kumar, Ld. DR सुनवधईकीतधरीख/ Date of Hearing : 28.12.2022 घोर्णधकीतधरीख / Date of Pronouncement : 28.12.2022 आदेश / O R D E R Per Amit Shukla, Judicial Member: The aforesaid appeal has been filed by the assessee against the impugned order dated 17.08.2022, passed by National Faceless Appeal Centre (NFAC), Delhi in relation to penalty proceedings u/s 271(1)(c) for AY 2012-13. 2 I.T.A. No. 2619/Mum/2022 Mr. Mayur P. Jain 2. Assessee is aggrieved by levy of penalty of Rs. 1,00,000/- made by AO and confirmed by Ld. CIT(A). 3. The facts in brief are that AO noted that assessee had shown loan from one of the party, Smt. Pistaben Sohanraj Sonigra. The addition was made by the AO on the ground that the said party is not showing the assessee as debtor for loan given to the assessee for Rs 1 lakh, whereas, the assessee has shown the same under the head ‘unsecured loan’. Though the assessee has filed the balance sheet, etc. of the said party showing that the loan was coming from earlier years, however, AO has still levied penalty of Rs. 1 Lakh and the same has been confirmed by the Ld. CIT (A) also. 4. We have heard both the parties and perused the impugned order as well as material placed on record. Ld. Counsel for the assessee submitted that this loan was not received by the assessee during the year under consideration. This loan was received in the earlier years. In support, he filed the balance sheet of earlier years right from AY 2006-07 asa this amount was received by the assessee in AY 2006-07 and the same was continuing till AY 2012- 13. Once the loan is coming from earlier years, the provision of 3 I.T.A. No. 2619/Mum/2022 Mr. Mayur P. Jain section 68 could not have been invoked and therefore, the addition itself was unsustainable. Accordingly, we are of the considered view that the penalty cannot be levied on such addition. Thus, we delete the penalty. 5. In the net result, the appeal filed by the assessee stands allowed. Orders pronounced in the open court on 28 th December, 2022. Sd/- Sd/- (S. Rifaur Rahman) (Amit Shukla) Accountant Member Judicial Member मुंबई Mumbai;नदनधंक Dated : 28/12/2022 Sr.PS. Dhananjay आदेशकीप्रतितितिअग्रेतिि/Copy of the Order forwarded to : 1. अपीलधथी/ The Appellant 2. प्रत्यथी/ The Respondent 3. आयकरआयुक्त(अपील) / The CIT(A) 4. आयकरआयुक्त/ CIT- concerned 5. नवभधगीयप्रनतनननध, आयकरअपीलीयअनधकरण, मुंबई/ DR, ITAT, Mumbai 6. गधर्ाफधईल / Guard File आदेशानुसार/ BY ORDER, .उि/सहायकिंजीकार (Dy./Asstt.Registrar) आयकरअिीिीयअतिकरण, मुंबई/ ITAT, Mumbai