BHARAT RANAWAT, MUMBAI V. ASST CIT CEN CIR 25, MUMBAI

ITA 3098/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83961 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-10-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 23-04-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MANISH SANGHVI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUM BAI , . . , ! BEFORE SHRI JOGINDER SINGH, JM AND SHRI N. K. BILL AIYA, AM ' #$ ./ I.T.A. NO. 3098/MUM/2013 ( / ASSESSMENT YEAR: 2008-09) SHRI BHARAT RANAWAT FLAT NO. 2, PURAB APARTMENTS, RIDGE ROAD, MALABAR HILLS, WALKESHWAR, MUMBAI-400 006 / VS. ASST. CIT, CENTRAL CIRCLE-25, 4 TH FLOOR, AAYAKAR BHAVAN, DR. M. K. ROAD, MUMBAI-400 020 & ./''' ./PAN/GIR NO. ADMPR 1313 G ( #$&( /APPELLANT ) : ( )*&( / RESPONDENT ) #$&( + , / APPELLANT BY : SHRI MANISH SANGHVI )*&( + , / RESPONDENT BY : SHRI VIVEK BATRA - ./ + 0 1 / DATE OF HEARING : 29.10.2014 234 + 0 1 / DATE OF PRONOUNCEMENT : 29.10.2014 '5 / O R D E R PER N. K. BILLAIYA, AM: THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE LD. CIT(A)-39, MUMBAI DATED 30.03.2013 PERTAINING TO ASSESSMENT YE AR (A.Y.) 2008-09. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ER RED IN CONFIRMING THE PENALTY LEVIED BY THE ASSESSING OFFICER (A.O.) U/S.271AAA OF THE ACT, AMOUNTING TO RS.2,24,318/-. 2. FACTS OF THE CASE ARE THAT THE SEARCH OPERATION U/S.132 OF THE ACT WAS CONDUCTED ON 05.06.2007 AT THE RESIDENTIAL/BUSINESS PREMISES OF THE METRO GROUP. THE ASSESSEE WAS COVERED IN THIS SEARCH OPERATION. THE ASSESSMENT WA S COMPLETED AT AN ASSESSED INCOME OF RS.56,60,410/-. THE PENALTY PROCEEDINGS U/S.271(1)( C) WERE INITIATED. IN THE PENALTY 2 ITA NO. 3098/MUM/2013 (A.Y. 2008-09) SHRI BHARAT RANAWAT VS. ASST. CIT PROCEEDINGS, THE ASSESSEE WAS ALLOWED AN OPPORTUNIT Y TO EXPLAIN ITS CASE VIDE SHOW CAUSE NOTICE U/S.271AAA OF THE ACT DATED 12.03.2012 WHICH WAS SERVED UPON THE ASSESSEE ON 22.03.2012. IN RESPONSE TO THE NOTICE, THE ASSESSEE FILED A DETAILED REPLY DATED 26.03.2012. THE SUBMISSIONS OF THE ASSESSEE DID NOT FIND FAVOUR WITH THE A.O. WHO PROCEEDED BY INVOKING THE PROVISIONS OF SECTION 271AAA AND LEVIE D PENALTY @ 10% OF THE UNDISCLOSED INCOME ASSESSED. THE ASSESSEE CARRIED THE MATTER BE FORE THE LD. CIT(A). IT WAS STRONGLY CONTENDED BEFORE THE LD. CIT(A) THAT THE PENALTY IS NOT VALID SINCE NO SUCH PENALTY PROCEEDINGS WERE INITIATED IN THE CASE OF ASSESSMEN T PROCEEDINGS. THE LD. CIT(A) DISMISSED THE CONTENTION OF THE ASSESSEE AND CONFIR MED THE ORDER OF THE PENALTY. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. 3. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENT ION TO THE ASSESSMENT ORDER AND POINTED OUT THAT IN THE ASSESSMENT ORDER, THE A.O. HAS GIVEN A DIRECTION TO INITIATE PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT, WHEREAS THE P ENALTY HAS BEEN LEVIED U/S.271AAA OF THE ACT. IT IS THE SAY OF THE LD. COUNSEL THAT NO S ATISFACTION HAS BEEN RECORDED BY THE A.O. FOR LEVYING PENALTY U/S.271AAA OF THE ACT. THEREFOR E, THE PENALTY SO LEVIED DESERVED TO BE DELETED. PER CONTRA , THE LD. DR SUPPORTED THE ORDERS OF THE REVENUE AU THORITIES. 4. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. NO DOUBT IN THE ASSESSMENT ORDER, THE PENALTY PROCEEDINGS WERE INIT IATED U/S.271(1)(C) OF THE ACT. FURTHER, WHEN THE ASSESSEE WAS SERVED A SHOW CAUSE NOTICE, T HE NOTICE WAS ISSUED U/S.271AAA OF THE ACT. THE ASSESSEE ATTENDED THE PROCEEDINGS. WE DECLINE TO ENTERTAIN THE CONTENTION OF THE LD. COUNSEL THAT NO SATISFACTION WAS RECORDED F OR LEVY OF PENALTY U/S.271AAA OF THE ACT. SECTION 271(1) OF THE ACT PROVIDES THAT IF THE A.O. IN THE COURSE OF ANY PROCEEDINGS UNDER THIS ACT, IS SATISFIED THAT ANY P ERSON - (A) (B) . (C) HAS CONCEALED THE PARTICULARS OF HIS INCOME OR FURNISHED INACCURATE PARTICULARS OF INCOME. 3 ITA NO. 3098/MUM/2013 (A.Y. 2008-09) SHRI BHARAT RANAWAT VS. ASST. CIT WHEREAS SECTION 271AAA PROVIDES THAT IN A CASE WHER E SEARCH HAS BEEN INITIATED U/S.132 ON OR AFTER THE FIRST DATE OF JUNE, 2007 (BUT BEFOR E THE FIRST DAY OF JULY, 2012), THE ASSESSEE SHALL PAY BY WAY OF PENALTY COMPUTED @ 10% OF THE U NDISCLOSED INCOME. 5. IN OUR UNDERSTANDING OF THE LAW, THERE IS NO MAN DATE FOR RECORDING ANY SATISFACTION SO FAR AS LEVY OF PENALTY U/S.271AAA IS CONCERNED. ALL THAT IS REQUIRED IS THAT THE SEARCH SHOULD HAVE BEEN INITIATED AFTER THE FIRST DAY OF J UNE, 2007, BUT BEFORE THE FIRST DAY OF JULY, 2012. THIS CONDITION IS FULFILLED IN THE CASE IN HAND. THEREFORE, THE LEVY OF PENALTY U/S.271AAA IS VERY MUCH AS PER THE PROVISIONS OF TH E ACT AND, THEREFORE, NO INTERFERENCE IS CALLED FOR. THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSE D. $6 407 896 0 + #$ 6 + 0 ! ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 29 TH , 2014 SD/- SD/- (JOGINDER SINGH) (N. K. BILLAIYA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER - / MUMBAI; : DATED : 29.10.2014 ... ./ ROSHANI , SR. PS ! ' #$%& ' &$ / COPY OF THE ORDER FORWARDED TO : 1. #$&( / THE APPELLANT 2. )*&( / THE RESPONDENT 3. ' ' - ;0 ( #$ ) / THE CIT(A) 4. ' ' - ;0 / CIT - CONCERNED 5. >.? )08 , ' #$1 #8 4 , - / / DR, ITAT, MUMBAI 6. @9 A/ / GUARD FILE ! ( / BY ORDER, )/(* + (DY./ASSTT. REGISTRAR) , - / / ITAT, MUMBAI