ACIT CC 39, MUMBAI V. GANRAYA LAND P.LTD, NAVI MUMBAI

ITA 279/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2635 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 28-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 10-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SHUKLA
• Assessee Lawyers: RAMESH JAIN
• Keywords: Unexplained expenditure; Search and seizure
• Section: 69C; 69; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO. 279/MUM./2014 ( ASSESSMENT YEAR : 20 09 1 0 ) ASSTT. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 39, AAYAKAR BHA WAN 101, M.K. ROAD, MUMBAI 400 020 .. APPELLANT V/S M/S. GANRAYA LAND PVT. LTD. RAJ SPARSH, PLOT NO.21 & 22 SECTOR 20, BELAPUR NAVI MUMBAI 400 614 PAN AACCG9821C .... RESPONDENT ASSESSEE BY : SHRI RAMESH JAIN REVE NUE BY : SHRI ANUPAMA SHUKLA DATE OF HEARING 28 . 10 .2015 DATE OF ORDER 30.10.2015 O R D E R PER SAKTIJIT DEY , J.M. THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED 25 TH OCTO BER 201 3 , PASSED BY THE L EARNED COMMISSIONER (APPEALS) - 39 , MUMBAI, DEL ETING PENALTY IMPOSED UNDER SECTION 271AAA OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) FOR THE ASSESSMENT YEAR 20 09 10 . 2. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIAL ON RECORD. A SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF THE ACT WAS M/S. GANRAYA LAND PVT. LTD. 2 CO NDUCTED IN CASE OF JAI CORP AND ASSOCIATES WITHIN THE GROUP INCLUDING THE ASSESSEE. ON THE BASIS OF SEARCH AND SEIZURE OPERATION, ASSESSMENT PROCEEDINGS IN CASE OF THE ASSESSEE WAS INITIATED AND IN THE COURSE OF ASSESSMENT PROCEEDINGS ON THE BASIS OF DOCUM ENTS FOUND AS A RESULT OF SEARCH, THE ASSESSING OFFICER MADE ADDITION OF ` 1,58,22,000 AS UNEXPLAINED EXPENDITURE UNDER SECTION 69C OF THE ACT. ON THE BASIS OF THE AFORESAID ADDITION, PROCEEDING FOR IMPOSITION OF PENALTY UNDER SECTION 271AAA W AS INITIATED ALLEGING CONCEALMENT OF INCOME AND FURNISHING OF INACCURATE PARTICULARS OF INCOME. ULTIMATELY, THE ASSESSING OFFICER PASSED AN ORDER UNDER SECTION 271AAA OF THE ACT IMPOSING PENALTY OF ` 15,82,200, BEING 10% OF THE UNDISCLOSED INCOME . BEING AGGRIEVED OF TH E PENALTY ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 3. IN THE COURSE OF HEARING OF APPEAL BEFORE THE FIRST APPELLATE AUTHORITY, IT WAS SUBMITTED BY THE ASSESSEE THAT THE ADDITION MADE UNDER SECTION 69C OF THE ACT IN THE ME AN WHILE HAS BEEN DELETED BY THE TRIBUNAL WHILE DECIDING ASSESSEES QUANTUM APPEAL. THE LEARNED COMMISSIONER (APPEALS), AFTER PERUSING THE ORDER OF THE TRIBUNAL, DELETING THE ADDITION MADE UNDER SECTION 69 C OF THE ACT IN ORDER DATED 22 ND MARCH 2013, PASSED IN ITA NO.8237/MUM./2011 AND OTHERS, DELETED THE PENALTY. M/S. GANRAYA LAND PVT. LTD. 3 4. UNDISPUTEDLY, IN THE PRESENT CASE, THE ADDITION MADE ON THE BASIS OF WHICH PENALTY WAS IMPOSED UNDER SECTION 271AAA, HAS BEEN DELETED BY THE TRIBUNAL WHILE DECIDING ASSESSEES QUANTUM APPEAL. THE REFORE, THE VERY BASIS ON WHICH PENALTY WAS IMPOSED, NO MORE EXIST . THAT BEING THE CASE, IMPOSITION OF PENALTY UNDER SECTION 271AAA WILL ALSO NOT SURVIVE. 5. IN THE AFORESAID VIEW OF THE MATTER, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED COMMIS SIONER (APPEALS) IN CANCELLING THE PENALTY UNDER SECTION 271AAA. THUS, THE GROUNDS RAISED BY THE DEPARTMENT ARE DISMISSED. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.10.2015 SD/ - ASHWANI TAEAJA ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 30.10.2015 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. C HOWDHURY SR. PRIVATE SECRETARY (DY./ASSTT. REGISTRAR) ITAT, MUMBAI