ACIT 28(1), MUMBAI V. MR. JAISINGH PATEL (PROP SEPARATION ENGINEERS (INDIA)), NAVI MUMBAI

ITA 3784/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4448 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 30-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMATHA MULLAMUDI
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI RAJESH KUMAR, HON'BLE ACCOUNTANT MEMBER ITA NO. 3784/MUM/2019 (A.Y: 2009 - 10 ) ACIT 28(1) ROOM NO. 306 , 3 RD FLOOR , 6 TH TOWER VASHI RAILWAY STATION COMPLEX VASHI, NAVI MUMBAI 400 703 V. SHRI JAISINGH PATEL {PROP. SEPARATION ENGINEERS (INDIA)} C6/6, 2:1, SECTOR - 3 CBD BELAPUR, NAVI MUMBAI 400 614 PAN: AASPP4871E (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : MS. SAM A THA M ULLAMUDI DATE OF HEARING : 07.10.2020 DATE OF PRONOUNCEMENT : 07.10.2020 O R D E R PER C. N. PRASAD (JM) 1. TH IS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 2 6 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] DATED 25.03.2019 FOR THE ASSESSMENT YEAR 2009 - 10 . 2. REVENUE IN ITS APPEAL HAS RAISED THE FOLLOWING GROUND S : - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) WAS CORRECT IN DELETING THE PENALTY OF .1,48,199/ - LEVIED U/S. 271(1)(C) OF THE ACT AS THE PENALTY WAS 2 ITA NO.3784/MUM/2019 (A.Y: 2009 - 10) SHRI JAISINGH PATEL LEVIED ON QUANTUM ADDITIONS MADE ON ACCOUNT OF BOGUS PURCHASES, WIT HOUT APPRECIATING THE FACT THAT THE ONUS WAS ON THE ASSESSEE TO ESTABLISH THE GENUINENESS OF SUCH PURCHASES BY PRODUCING SUCH PARTIES BEFORE THE ASSESSING OFFICER AND THE ASSESSEE FAILED TO DISCHARGE HIS ONUS? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANC ES OF THE CASE AND IN LAW, THE LD.CIT(A) WAS CORRECT IN HOLDING THAT THE ASSESSING OFFICER HAS ESTIMATED THE INCOME WITHOUT APPRECIATING THAT THE ASSESSING OFFICER HAS LEVIED PENALTY, ONLY AFTER VERIFYING THE FACT THAT THE ASSESSEE EVADED THE TAXES ON QUA NTUM OF ADDITIONS MADE ON ACCOUNT OF BOGUS PURCHASES AND THE ASSESSEE FAILED TO ESTABLISH THE GENUINENESS OF SUCH PURCHASES? 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) WAS CORRECT IN HOLDING THAT ASSESSEE HAS NE ITHER CONCEALED THE PARTICULARS OF INCOME NOR HAS IT FURNISHED INACCURATE PARTICULARS OF INCOME, THERE BEING ARE NO FINDINGS OF THE ASSESSING OFFICER THAT THE DETAILS FURNISHED BY THE ASSESSEE IN HIS R ETURN ARE FOUND TO BE INACCURATE OR ERRONEOUS OR FALSE WITHOUT APPRECIATING THE FACT BY RESTORING TO BOGUS PURCHASES / ACCOMMODATION ENTRY, THE ASSESSEE MADE AN ATTEMPT TO REDUCE THE PROFITABILITY AND THEREBY ATTEMPTED TO AVOID TAXES, WHICH IN ITSELF PROVES BEYOND DOUBT THAT ASSESSEE CONCEALED PARTICULARS OF I NCOME? 4. THE APPELLANT PRAYS THAT THE ORDER OF THE LD.CIT(A) ON THE ABOVE GROUNDS BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED? 5. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUNDS OR ADD A NEW GROUND WHICH MAY BE NECESSARY? ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN DELETING THE ADDITIONS MADE ON ACCOUNT OF DELAYED PAYMENTS OF PF & ESIC . 3. AT THE TIME OF HEARING, WHEN IT WAS POINTED OUT TO THE LD. DR THAT THE REVENUE EFFECT IN THIS APPEAL I S BELOW .50 LAKHS THE LD. DR THOUGH AGREED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW .50 LACS 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 3 ITA NO.3784/MUM/2019 (A.Y: 2009 - 10) SHRI JAISINGH PATEL MAINTAINABLE, IT IS SUBMITTED THAT THIS APPEAL IS FILED AGAINST DELETION OF PENALTY OF . 1,48,199 / - LEVIED U/S. 271(1)(C) OF THE ACT ON THE DISALLOWANCE MADE TOWARDS BOGUS PURCHASES . 4. HEARD LD. DR, PERUSED THE GROUNDS OF APPEAL AND THE ORDERS OF THE AUTHO RITIES BELOW. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .50 LAKHS AND THEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. WE ALSO OBSERVED THAT SIN CE 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, THE APPEAL IS NOT MAINTAINABLE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 07.10.2020 AS PER RULE 34(4) OF ITAT RULES BY PLACING THE PRONOUNCEMENT LIST IN THE NOTICE BOARD. SD/ - SD/ - ( RAJESH KUMAR) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 07/10/2020 GIRIDHAR , S R. PS 4 ITA NO.3784/MUM/2019 (A.Y: 2009 - 10) SHRI JAISINGH PATEL 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