POWAI VIHAR DEVELOPERS P.LTD, MUMBAI V. DCIT 10(3), MUMBAI

ITA 3490/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0487 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 19-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN , JUDICIAL MEMBER ITA NO. 3490/MUM/2016 : A.Y : 2005 - 06 POWAI VIHAR DEVELOPERS PVT. LTD., SHRISHTI HOUSE, 1 ST FLOOR, NSB ROAD, MULUND (W), MUMBAI 400 080. PAN : AAACP4163G (APPELLANT) VS. DCIT - 10(3) MUMBAI (RESPONDENT) APPELLANT BY : SHRI M. SUBRAMANIAN RESPONDENT BY : SHRI SUMAN KUMAR DATE OF HEARING : 02/01/2018 DATE OF PRONOUNCEMENT : 31 /01/2018 O R D E R PER G.S. PANNU , AM : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 24 , MUMBAI DATED 12.02.2016 , PERTAINING TO THE ASSESSMENT YEAR 2005 - 06 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE DCIT, CIRCLE - 10(3), MUMBAI DATED 30.04.2013 UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2 ITA NO. 3490/MUM/2016 POWAI VIHAR DEVELOPERS PVT. LTD. 2. IN BRIEF, THE RELEVANT FACTS ARE THAT THE ASSESSING OFFICER IN THE ASSESSMENT FINALISED U/S 143(3)(II) R.W.S. 147 OF THE ACT ON 10.12. 2010 MADE AN ADDITION OF RS.55,00,000/ - ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT AND HAD INITIATED SEPARATELY, PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT. T HE ASSESSING OFFICER LEVIED PENALTY OF RS. 20,12,587 / - BEING 100% OF THE TAX SOUGHT TO BE EVADED. EVEN THE CIT(A) HAS AFFIRMED THE LEVY OF PENALTY. AGAINST SUCH A DECISION OF THE CIT(A), ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. AT THE TIME OF HEARING, THE LEARNED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE QUANTUM PROCEEDI NGS AGAINST THE ADDITION ON ACCOUNT OF CASH CREDIT HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL VIDE ITS ORDER IN ITA NO. 6412 /MUM/201 1 DATED 0 4 . 03 .2016. THE LEARNED REPRESENTATIVE ALSO SUBMITTED THAT SINCE THE ADDITION, ON THE BASIS OF WHIC H THE PENALTY HAS BEEN LEVIED U/S 271(1)(C) , ITSELF HAS BEEN DELETED BY THE TRIBUNAL VIDE ITS ORDER DATED 04.03.2016 (SUPRA), THE PENALTY DOES NOT SURVIVE. 4. THE LD. DR DID NOT OPPOSE THE FACTUAL MATRIX BROUGHT OUT BY THE LEARNED REPRESENTATIVE FOR THE A SSESSEE. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND THAT THE ADDITION ON THE BASIS OF WHICH THE PENALTY PROCEEDINGS WERE INITIATED HAVE BEEN DELETED BY THE TRIBUNAL VIDE ITS ORDER IN ITA NO. 6412/MUM/2011 DATED 04.03.2016 . THEREFORE, THE PENALTY LE VIED U/S 271(1)(C) OF THE ACT DOES NOT SURVIVE AND IS HEREBY DELETED. 3 ITA NO. 3490/MUM/2016 POWAI VIHAR DEVELOPERS PVT. LTD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 1 S T JANUARY , 201 8 . SD/ - SD/ - ( SANDEEP GOSAIN ) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER MUMBAI, DATE : 3 1 S T JANUARY , 201 8 *SSL* COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, F BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI