PORECHA GLOABAL SECURITIES P. LTD, MUMBAI V. ASST CIT CIR 4(2), MUMBAI

ITA 3104/MUM/2012

• Counselvise Citation: 310419914 RSA 2012
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-12-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 07-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARMANAND J
• Assessee Lawyers: SAMIR PORECHA
• Keywords: Reasonable cause

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./ I.T.A. NO.3104/MUM/2012 ( / ASSESSMENT YEAR :2006-07) M/S PORECHA GLOBAL SECURITIES PVT.LTD, PG-14, ROTUNDA BUILDING STOCK EXCHANGE, B S MARG, MUMBAI-400023 / VS. ASSTT.COMMISSIONER OF INCOME TAX CIRCLE 4(2), AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ( / APPELLANT) .. ( ! / RESPONDENT) ./ #$ ./ PAN/GIRNO.:AAACP6228M % / APPELLANT BY : SHRI SAMIR PORECHA ! & % / RESPONDENT BY SHRI PARMANAND J ' ( & ) * / DATE OF HEARING :31.12.2014 +, & ) * /DATE OF PRONOUNCEMENT :16.01.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 19- 01-2012 PASSED BY LD CIT(A)-8, MUMBAI CONFIRMING TH E PENALTY LEVIED U/S 271(1)(C) OF THE ACT FOR THE ASSESSMENT YEAR 2006-0 7. THE APPEAL IS BARRED BY LIMITATION BY 21 DAYS. THE ASSESSEE HAS MOVED A PETITION REQUESTING THE BENCH TO CONDONE THE DELAY. IN THE PETITION IT IS STATED THAT THE EMPLOYEE WHO RECEIVED THE APPELLATE ORDER ISSUE D BY LD CIT(A) KEPT IT 2 WITH HIM AND WENT ON LEAVE DUE TO HIS PERSONAL WORK S. THE ORDER WAS GIVEN TO THE DIRECTORS ONLY AFTER HIS RETURN AND TH E SAME HAS CAUSED THE DELAY. THE ASSESSEE HAS ALSO FURNISHED AN AFFIDAVI T GIVEN BY SHRI LAXMAN PAWAR, EMPLOYEE OF THE ASSESSEE. WE HEARD THE LD D .R ON THIS PRELIMINARY ISSUE. HAVING REGARD TO THE SUBMISSION S MADE IN THE PETITION, WE ARE OF THE VIEW THAT THERE WAS REASONABLE CAUSE FOR FILING THE PRESENT APPEAL BELATEDLY. ACCORDINGLY, WE CONDONE THE DELA Y AND ADMIT THE APPEAL FOR HEARING. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE PENALTY OF RS.4,50,000/- WAS LEVIED U/W 271(1)(C) O F THE ACT ON THE DISALLOWANCE OF RS.15.00 LAKHS RELATING TO THE BROK ERAGE PAYMENT. AT THE TIME OF HEARING, THE LD A.R SUBMITTED ORDER DATED 0 4-04-2014 PASSED BY THE TRIBUNAL IN THE QUANTUM ASSESSMENT PROCEEDINGS IN ITA NO.1590/MUM/2010, WHEREIN THE CO-ORDINATE BENCH OF TRIBUNAL HAD REDUCED THE DISALLOWANCE TO RS.12.00 LAKHS. THE LD A.R FURTHER SUBMITTED THAT THE TRIBUNAL HAD SUSTAINED THE ADDITION TO THE EXTENT OF RS.3.00 LAKHS, SINCE THE BROKERAGE PAYMENT WAS MADE TO RELATED PER SONS COVERED BY SEC. 40A(2)(B) OF THE ACT. HE FURTHER SUBMITTED THAT TH E DISALLOWANCE OF RS.3.00 LAKHS WAS ALSO SUSTAINED BY THE TRIBUNAL ON ESTIMATED BASIS ONLY. ACCORDINGLY HE SUBMITTED THAT THE IMPUGNED PENALTY IS LIABLE TO BE DELETED. 3. THE LD D.R DID NOT DISPUTE THE FACTS FURNISHE D BY LD A.R. 4. THUS, WE NOTICE THAT THE ADDITION OF RS.15. 00 LAKHS MADE BY THE ASSESSING OFFICER, ON WHICH THE IMPUGNED PENALTY WA S LEVIED, WAS SUSTAINED TO THE EXTENT OF RS.3.00 LAKHS ONLY BY TH E TRIBUNAL, THUS GIVING RELIEF OF RS.12.00 LAKHS TO THE ASSESSEE. EVEN THE ABOVE SAID RS.3.00 LAKHS WAS SEEN SUSTAINED ON ESTIMATED BASIS. UNDER THESE SET OF FACTS, WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE. ACC ORDINGLY, WE SET ASIDE 3 THE ORDER OF LD CIT(A) AND DIRECT THE ASSESSING OFF ICER TO DELETE THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT FOR THE YEA R UNDER CONSIDERATION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16TH JAN,2015. +, ' - ./ 0 116 TH JAN 2015 , & 4( 5 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER . ' ( MUMBAI: 16TH JAN, 2015. . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. ' 9) ( ) / THE CIT(A)- CONCERNED 4. ' 9) / CIT CONCERNED 5. 6. :; 4 )< , * < , . ' ( / DR, ITAT, MUMBAI CONCERNED 4 = > ( / GUARD FILE. ? ' / BY ORDER, TRUE COPY @ # (ASSTT. REGISTRAR) * < , . ' ( /ITAT, MUMBAI