M/S GANPATI CARRING CORPORATION , NAVI MUMBAI V. INCOME TAX OFFICER , WARD -1 , PANVEL , PANVEL

ITA 332/PUN/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1662 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 05-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

आयकर अपीऱीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपीऱ सं. / ITA No.332/PUN/2020 ननधधारण वषा / Assessment Year : 2015-16 M/s. Ganpati Carrying Corporation, Office No. 648,D Wing, 6 th Floor, Disma Office Premises Co-Op. Soc. Ltd., Plot No.246, Kalamboli, Navi Mumbai – 410 218 PAN : AAGFG6936K .......अपऩलधथी / Appellant बनधम / V/s. ITO, Ward -1, Panvel ......प्रत्यथी / Respondent Assessee by : Shri Rajesh F Agarwal Revenue by : Shri Arvind Desai सपनवधई की तधरऩख / Date of Hearing : 20.06.2022 घोषणध की तधरऩख / Date of Pronouncement : 29.07.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for A.Y. 2015-16 is directed against the CIT(A)-2, Thane’s order dated 07/01/2020 passed in case No. 10223/2018-19 involving proceeding u/s. 271(1)(c) of the Income Tax Act, 1961; in short "the Act”. Heard both the parties. Case file perused. 2 ITA No.332/PUN/2020 A.Y. : 2015-16 M/s. Ganpati Carrying Corporation., 2. Coming to the assessee’s sole substantive grievance that both the learned lower authorities have erred in law and on facts in imposing section 271(1)(c) penalty of Rs.35,62,080/-, we note at the outset that the same hardly requires us to delve deeper in the relevant factual matrix. Suffice to say, the same pertains to four items of quantum disallowance involving diesel and oil, motor/ lorry , trip, tyre/tube and repairs as well as maintenance expenses disallowed on ad-hoc basis @ 5% , 10% , 20%, & 5% in latter twin instances each; respectively. 3. Mr. Desai vehemently argued in support of the impugned penalty that the assessee’s above quantum deduction claim had seen very much abnormal fluctuations and therefore, both the learned lower authorities have rightly impose the impugned penalty in given facts and circumstances. 4 . We have heard both the parties reiterating their respective pleadings against and in support of impugned penalty and find no merit in the Revenue’s stand. We make it clear first of all that hon’ble apex court’s landmark decision in CIT Vs Reliance Petro products (2010) 322 ITR 158(SC) has settled the law each and every disallowance/ addition made in quantum proceedings does not automatically attract the impugned penal provision since both these statutory provisions involve parallel adjudication. Coming to the relevant facts, there is hardly any dispute that the learned lower authorities had disallowed the assessee’s deduction claims on ad-hoc 3 ITA No.332/PUN/2020 A.Y. : 2015-16 M/s. Ganpati Carrying Corporation., basis only at varying rates (supra) and majority of the extent thereof already stood accepted. We conclude in this factual backdrop that both the lower authorities have erred in law and imposing the impugned penalty in the given facts and circumstances of the case. The same is directed to be deleted. 5. This assessee’s appeal is allowed in above terms. Order pronounced in the Open Court on this 29 th day of July, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 29 th July, 2022. Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : 1. अपऩलधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-2, Thane. 4. The Pr.CIT-2, Thane. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune. 4 ITA No.332/PUN/2020 A.Y. : 2015-16 M/s. Ganpati Carrying Corporation., S.No. Details Date Initials 1 Draft dictated on 20.06.2022 2 Draft placed before author 29.07.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order