M/S HINGALJ METALS & ALLOYS PVT LTD, MUMBAI V. CIT(A), NFAC,DELHI, MUMBAI

ITA 2799/MUM/2022

AI Insights

The case involves M/s. Hinglaj Metals & Alloys Pvt. Ltd., the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, confirming a penalty levied under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2009-10. The penalty was related to alleged bogus purchases. The Tribunal noted that the quantum of the case had been restored to the CIT(A) by a previous order, and thus, it was deemed appropriate to also restore the penalty proceedings to the CIT(A) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132744 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: H
• Next Hearing Date: 15-01-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 01-11-2022
• Other Referred Cases: ITA No.2877/Mum/2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 271(1)(c)

Judgement Text

आयकर य कर म ु ंबई ठ “ एच”, म ु ंबई ठ क , य यक य ए ं मरज त " ं# , ेख क र य के म& IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “ H ”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH , ACCOUNTANT MEMBER आ ं. 2799/म ु ं/ 2022 ( +. . 2009-10) ITA NO. 2799/MUM/2022(A.Y.2009-10) M/s. Hinglaj Metals & Alloys Pvt. Ltd., 2 Sheetal CHSL, Grnd Floor, Saptrishi Sankul Ovripada, Dahisar East, Mumbai – 400 068. PAN: AAACH-9744-H ...... - /Appellant ब+ म Vs. CIT(A), NFAC, Delhi. ..... . त /Respondent - / र / Appellant by : Shri Dharmil Jhaveri . त / र /Respondent by : Shri Tejinder Pal Singh Anand ु + ई क0 त / Date of hearing : 16/01/2023 123 क0 त / Date of pronouncement : 16/01/2023 आदेश/ ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax(Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 01/08/2022 for the assessment year 2009-10, confirming penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 [in short ‘the Act’]. 2 ITA NO. 2799/MUM/2022(A.Y.2009-10) 2. This appeal is time barred by 33 days. The assessee has filed an application seeking condonation of delay. After perusing the application we are satisfied that the delay in filing of the appeal is not intentional but has occurred due to bonafide reasons stated in application. The delay of 33 days in filing of appeal is condoned and the appeal is admitted for hearing on merits. 3. Shri Dharmil Jhaveri appearing on behalf of the assessee submits that the Assessing Officer has levied penalty u/s. 271(1)(c) of the Act in respect of alleged bogus purchases. The Assessing Officer made addition of the entire alleged bogus purchases. The CIT(A) confirmed the assessment order. The assessee carried the issue in appeal before the Tribunal. The Tribunal in ITA No.2877/Mum/2018, vide order dated 05/12/2019 has restored the issue to the file of CIT(A). The ld. Authorized Representative for the assessee submits that since the Tribunal has restored assessment proceedings back to the file of CIT(A), the present penalty proceedings are not sustainable. The ld. Authorized Representative for the assessee further pointed that the Tribunal in appeal by the assessee against levy of penalty u/s. 271(1)(c) of the Act for assessment years 2010-11 and 2011-12 has restored the appeal to the file of CIT(A). 4. Per contra, Shri Tejinder Pal Singh Anand representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. However, ld. Departmental Representative fairly admitted that in quantum proceedings the appeal of assessee has been restored by the Tribunal to the CIT(A). 5. Both sides heard, orders of authorities below examined. We find that the Co-ordinate Bench in assessee’s appeal in ITA No.2877/Mum/2018(supra) 3 ITA NO. 2799/MUM/2022(A.Y.2009-10) against assessment for impugned assessment year has restored the appeal to the file of CIT(A) for fresh adjudication. Since, quantum proceedings have been restored to the First Appellate Authority, we deem it appropriate to restore the penalty proceedings u/s. 271(1)(c) of the Act as well to the CIT(A). The CIT(A) shall decide this appeal denovo after affording reasonable opportunity to the assessee for making the submissions. The assessee is directed to comply with the notices issued by the CIT(A). In case, the assessee fails to respond to the notices, the CIT(A) is at liberty to take adverse view. The impugned order is set-aside and the appeal is allowed for statistical purpose. Order pronounced in the open court on Monday the 16 th day of January, 2023. Sd/- Sd/- (AMARJIT SINGH ) (VIKAS AWASTHY) ेख क र य/ACCOUNTANT MEMBER य यक य/JUDICIAL MEMBER म ु ंबई/ Mumbai, 4 + ंक/Dated 16/01/2023 Vm, Sr. PS(O/S) े Copy of the Order forwarded to : 1. -/The Appellant , 2. . त / The Respondent. 3. आयकर आय ु 5त( )/ The CIT(A)- 4. आयकर आय ु 5त CIT 5. 6 7 य . त + , आय. . ., म ु बंई/DR, ITAT, Mumbai 6. 7 9: ; < /Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar), ITAT, Mumbai