ASST CIT CIR 2, THANE V. SALASAR DEVELOPERS, THANE

ITA 3605/MUM/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6933 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI M. BALAGANESH , HONBLE ACCOUNTANT MEMBER ITA NO . 3605 /MUM/201 6 ( A.Y: 200 7 - 08) A SST. COMMISSIONER OF INCOME TAX CIRCLE 2 R.NO. 27 , 6 TH FLOOR ASHAR IT PARK, B - WING, MIDC WAGLE INDUSTRIAL ESTATE THANE (W) - 400 604 V. M/S. SALASAR DEVELOPERS GROUND FLOOR, VRINDA V AN SALASAR BRIJBHOOMI, TEMBA HOSPITAL ROAD , BHAYANDER (W) THANE - 401101 PAN: AAKFS6465R (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI VIJAY KUMAR DATE OF HEARING : 04 . 02.2020 DATE OF PRONOUNCEMENT : 04 . 02.2020 O R D E R PER C.N. PRASAD (JM) TH IS APPEAL IS FILED BY THE R EVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1 , THANE [HEREINAFTER IN SHORT LD.CIT(A)] DATED 22.02.2016 FOR THE A . Y . 2007 - 08 . 2. THE REVENUE IN ITS APPEAL HAS RAISED FOLLOWING GROUNDS : - ' 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE CIT(A) ERRED IN DELETING THE PENALTY AMOUNTING TO RS. 36,65,112/ - LEVIED U/S 271(1 )(C) OF THE I.T. ACT. 2 ITA NO. 3605/MUM/2016 (A.Y: 2007 - 08) M/S. SALASAR DEVELOPERS 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LA W, THE HON'BLE CIT(A) ERRED IN DELETING THE PENALTY DESPITE THE FACT THAT PROVISIONS OF SECTION 80IB(10)(A) AND 80IB(10)(C) WERE CLEARLY VIOLATED BY THE ASSESSEE. 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE CIT(A) E RRED IN DELETING THE PENALTY DESPITE THE FACT THAT THE INACCURATE PARTICULARS FILED BY THE ASSESSEE FALSELY CLAIMING DEDUCTION U/S 80IB(10) WERE REVEALED UPON SITE VISIT CONDUCTED DURING THE SEARCH ACTION WHICH CLEARLY REVEALED THE ASSESSEE'S INTENTION TO MISREPRESENT THE FACTS. 4. THE ORDER OF THE CIT(A) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR DELETE ANY GROUND OF APPEAL. '. 3. AT THE TIME OF HEARING, WHEN IT WAS POINTED OUT TO THE LD. DR THAT THE REVENUE EFFECT IN THIS APPEAL IS BELOW .50 LAKHS THE LD. DR THOUGH AGREED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW .5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE , IT IS SUBMITTED THAT THIS APPEAL IS FILED AGAINST DELETION OF PENALTY OF .36,65,112/ - LEVIED U/S. 271(1)(C) OF THE ACT ON THE DISALLOWANCE MADE U/S. 80IB(10) OF THE ACT. 4. HEARD LD. DR , PERUSED THE GROUNDS OF APPEAL AND THE ORDERS OF THE AUTHORITIES BELOW . WE FIND THAT THE TAX EFFECT IN TH IS APPEAL IS LESS THAN .5 0 LAKHS AND T HEREFORE THE APPEAL OF THE R EVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 3 ITA NO. 3605/MUM/2016 (A.Y: 2007 - 08) M/S. SALASAR DEVELOPERS DATED 08.08.2019. WE ALSO OBSERVED THAT SINCE THE ISSUE IS IN RESPECT OF LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT AND NONE OF THE EXCEPTION IN THE CIRCULAR ARE APPLICABLE , TH E APPEAL IS NOT MAINTAINABLE. 5. IN THE RE SULT, APPEAL OF THE R EVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 04 TH FEBRUARY, 2020 SD/ - S D / - ( M. BALAGANESH ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 04/02/2020 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM