RENAISSANCE CORPORATION LTD, MUMBAI V. DCIT 7(2), MUMBAI

ITA 3315/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5512 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAVLD
• Assessee Lawyers: GAURAV KABRA LD
• Section: 143(3)

Judgement Text

ITA NO.3315/MUM/2017 RENAISSANCE CORPORATION LIMITED ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI . , , BEFORE SHRI C.N. PRASAD, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.3315/MUM/2017 ( / ASSESSMENT YEAR:2011-12) RENAISSANCE CORPORATION LIMITED 203A,2 ND FLOOR, CHINTAMANI PLAZA, ANDHERI KURLA ROAD CHAKALA, ANDHERI(E) MUMBAI-400 059 / VS. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-7(2) AAYKAR BHAVAN, M.K.ROAD MUMBAI-400 020 !' ./ ./ PAN/GIR NO.AACCD-0975-A ( '$ /APPELLANT ) : ( %'$ / RESPONDENT ) REVENUEBY : RAJESH KUMAR YADAV, LD.DR ASSESSEE BY : GAURAV KABRA, LD.AR / DATE OF HEARING : 11/07/2018 / DATE OF PRONOUNCEMENT : 13 /07/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [A Y] 2011-12 CONTEST THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS)-14 [CIT(A)], MUMBAI, APPEAL NO. CIT(A)-14/IT-242/14-15 DATED 29/07/2016 QUA CONFIRMATION OF PENALTY U/S 271(1)(C) FOR RS.1.86 L ACS. THE SOLE GROUND AS RAISED IN THE APPEAL READ AS UNDER:- 2 ITA NO.3315/MUM/2017 RENAISSANCE CORPORATION LIMITED ASSESSMENT YEAR-2011-12 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE LE ARNED ASSESSING OFFICER IN LEVYING A PENALTY OF RS.1,86,000/- U/S.271(1)(C) OF THE INCOME TAX ACT,1961, BEING 100% OF THE TAX SOUGHT TO BE EVADED, WITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE. THE QUANTUM ASSESSMENT WAS COMPLETED U/S 143(3) ON 13/01/2014 WHEREIN THE LOSS HAS BEEN ASSESSED AT RS.79.84 CROR ES AFTER CERTAIN ADDITION AS AGAINST LOSS OF RS.79.90 CRORES E -FILED BY THE ASSESSEE ON 30/09/2011. THE ASSESSEE HAS SUFFERED SOLE ADDITION OF RS.6,19,272/- IN QUANTUM ASSESSMENT ON ACCOUNT OF MISMATCH IN DATA R EFLECTED IN ANNUAL INFORMATION REPORT [AIR] FORM 26AS. THE SAID ASSESSMENT HAS ATTAINED FINALITY SINCE NO APPEAL HAS BEEN PREFERRED AGAINST THE SAME. 2. CONSEQUENTLY, PENALTY PROCEEDINGS WERE INITIATED U/S 271(1)(C) IN THE QUANTUM ASSESSMENT AND THE ASSESSEE HAS BEEN SADDLE D WITH IMPUGNED PENALTY OF RS.1.86 LACS FOR FURNISHING OF INACCURAT E PARTICULARS OF INCOME AND NOT DISCLOSING THE CORRECT INCOME VIDE PENALTY ORDER DATED 31/07/2014. THE SAME, UPON CONFIRMATION BY LD. CIT(A) VIDE IMPU GNED ORDER DATED 29/07/2016, IS UNDER CHALLENGE BEFORE US. 3. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], SHRI. GAURAV KABRA CONTESTED THE ADDITIONS ON LEGAL GROUNDS AS WELL A S ON MERITS WHICH WERE CONTROVERTED BY LD. DEPARTMENTAL REPRESENTATIV E SHRI. RAJESH KUMAR YADAV . 4. WE HAVE HEARD THE RIVAL CONTENTIONS. UPON DUE CO NSIDERATION, WE FIND THAT THE ASSESSEE, IN GROUND OF APPEAL, HAS NOT CON TESTED THE PENALTY ON LEGAL GROUNDS AND THEREFORE, NO FINDING COULD BE GI VEN AGAINST THE SAME. 3 ITA NO.3315/MUM/2017 RENAISSANCE CORPORATION LIMITED ASSESSMENT YEAR-2011-12 5. SO FAR AS THE MERITS OF THE CASE ARE CONCERNED, WE FIND THAT THE ASSESSEE HAS SUFFERED ADDITION ONLY BECAUSE OF MISM ATCH IN AIR DATA FORM 26AS WHICH WAS MATTER OF RECONCILIATION. APPARENTLY, THE ADDITION HAS BEEN ACCEPTED IN VIEW OF THE FACT THAT THE ASSESSEE ALRE ADY SUFFERED HUGE LOSSES IN THE IMPUGNED AY. THE PERUSAL OF ENTRIES IN FORM 26AS SUPPORT THE SUBMISSIONS OF LD. AR THAT THE DATA REFLECTED THERE IN HAS BEEN MODIFIED IN LATER FINANCIAL YEARS SUBSEQUENT TO FILING OF RETUR N OF INCOME BY THE ASSESSEE. IN VIEW OF THE STATED POSITION, THE IMPUG NED PENALTY COULD NOT BE SUSTAINED AND THEREFORE, THE SAME STAND DELETED. 6. THE ASSESSEES APPEAL STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH JULY, 2018 SD/- SD/- (C.N.PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 13.07.2018 SR.PS:-THIRUMALESH 4 ITA NO.3315/MUM/2017 RENAISSANCE CORPORATION LIMITED ASSESSMENT YEAR-2011-12 / COPY OF THE ORDER FORWARDED TO : 1. )*+,-. / THE APPELLANT 2. 234-. / THE RESPONDENT 3. 74874 9: ) )*+, ( / THE CIT(A) 4. 74874 9: / CIT CONCERNED 5. CDEF+42G:GHI , 748)*+,K4)HI8L , / DR, ITAT, MUMBAI 6. FNOP, / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) ./01 , / ITAT, MUMBAI