SHANKARLAL P.MALI, MUMBAI V. DCIT-CC4(4),RANGE-4, MUMBAI

ITA 2683/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5579 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 24-08-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 12-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Keywords: Business income; Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 2683 / MUM/20 16 TO 2689/MUM/2016 ( ASSESSMENT YEAR : 2001 - 02 TO 2007 - 08 ) SHRI SHANKARLAL P. MALI PROP. OF. SUNDHAMAA ENTERPRISES, 21 , ASHISH INDUSTRIAL ESTATE, GOKHALE ROAD (S), DADAR (W) MUMBAI 400 025 VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE4(4), RANGE - 4 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT MUMBAI PAN/GIR NO. AABPM7296D APPELLANT ) .. R ESPONDENT ) ASSESSEE BY SHRI GIRISH DAVE REVENUE BY SHRI CHAITANYA ANJARIA DATE OF HEARING 30/07 /2 01 8 DATE OF PRONOUNCEMENT 31 / 07 /201 8 / O R D E R PER BENCH: THESE ARE THE APPEALS FILED BY ASSESSEE AGAINST THE ORDER OF CIT(A) - 52, MUMBAI DATED 23/02/2016 FOR A.Y.2001 - 02 TO 2007 - 08 IN THE MATTER OF IMPOSITION OF PENALTY U/S. 271(1)(C) OF THE IT ACT. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT ASSESSEE IS AN INDIVIDUAL CARRYING ON PROPRI ETARY CONCERN UNDER THE NAME M/S SUNDHA MAA ENTERPRISES FROM ASST. YEAR 1990 - 91. PRESENTLY ASSESSEE IS CARRYING ON BUSINESS OF MANUFACTURER OF READY - MADE SHIRTS IN THE NAME OF M/S. SUNDHA MAA ENTERPRISES. THE ITA NO. 2683/MUM/2016 TO 2689/MUM/2016 SHRI SHANKARLAL P. MALI 2 ASSESSEE GROUP IS DEALERS IN READYMADE GARMENTS . SOME OF THE ITEMS DEALT IN BY THE GROUP ARE SHIRTS, KIDS - WEAR AND SHERWANI ETC. THE MANUFACTURING ACTIVITY CONSISTS OF PROCURING MATERIAL FROM SUPPLIERS AND CUTTING THE SAME ACCORDING TO SIZE BY MASTER TAILORS. A SEARCH AND SEIZURE OPERATION U/S.132 OF T HE ACT WAS CARRIED OUT ON THESE GROUP OF CASES ON 28/06/2006. CERTAIN INCRIMINATING DOCUMENTS WERE FOUND DURING SEARCH WITH REGARD TO UNACCOUNTED PURCHASE AND SALES. 3. DURING THE COURSE OF ASSESSMENT, THE AO ON THE UNACCOUNTED SALES ESTIMATED GP AND ADDE D THE SAME IN ASSESSEES INCOME. AO ALSO LEVIED PENALTY U/S. 271(1)(C) WITH RESPECT TO THE ADDITIONS SO MADE. 4. AT THE OUTSET LEARNED AR PLACED ON RECORD THE ORDER OF THE TRIBUNAL IN QUANTUM APPEAL DATED 26/06/2018 WHEREIN MOST OF THE ADDITIONS WITH RES PECT TO WHICH PENALTY WAS LEVIED, WAS DELETED BY THE TRIBUNAL. AS PER THE DETAILS FILED BY LEARNED AR THE ADDITIONS SO SUSTAINED BY TRIBUNAL ARE WITH RESPECT TO THE ESTIMATED PROFIT ON ACCOUNTED SALES ARE AS UNDER: - ASSESSMENT YEAR PROFIT 2001 - 02 8 2002 - 03 110 2003 - 04 32 2004 - 05 7,271 2005 - 06 40,274 2006 - 07 2,65,212 2007 - 08 52,805 5. IT IS CLEAR THAT ONLY ADDITION UPHELD IS IN RESPECT OF ESTIMATED PROFIT FOUND BY AO ON THE UNDISCLOSED SALES WHICH ARE VERY MEAGER LOOKING TO ITA NO. 2683/MUM/2016 TO 2689/MUM/2016 SHRI SHANKARLAL P. MALI 3 THE TOTAL SALES MADE BY THE ASSESSEE. ACCORDINGLY, WE DO NOT FIND ANY MERIT FOR THE IMPOSITION OF PENALTY WITH RESPECT TO THE ESTIMATED ADDITION SO UPHELD IN RESPECT OF THE PROFIT ESTIMATED ON UN ACCOUNTED SALES. 6. IN THE RESULT, ALL THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 / 07 /201 8 SD/ - ( SANDEEP GOSAIN ) SD/ - (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 31 / 07 /201 8 KARUNA SR. PS COPY OF THE ORDER FOR WARDED 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//