ASST. CIT 31(3), Mumbai V. M/S VNC INFRAPROJECTS, Mumbai

ITA 4031/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2637 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHINTAMANI DINGANKARLD
• Assessee Lawyers: RAMNIKLAL U JAINLD
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c); 143(3)

Judgement Text

ITA NO.4031/MUM/2019 ASSESSMENT YEAR: 2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI SAKTIJIT DEY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.4031/MUM/2019 ( / ASSESSMENT YEAR: 2009-10) A CIT - 31 ( 3 ) , MUMBAI ROOM NO.623, 6 TH FLOOR KAUTILYA BHAVAN, NEAR VIDESH BHAVAN BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI-400 051. / VS. M / S. VNC INFRAPROJECTS 29/B, 1 ST FLOOR, PANCHRATNA BUILDING S.V. ROAD, GOREGAON (W) MUMBAI-400 090. PAN/GIR NO. AAPFM - 1184 - L ( '# /APPELLANT ) : ( $%'# / RESPONDENT ) ASSESSEE BY : SHRI RAMNIKLAL U. JAIN-LD. AR REVENUE BY : SHRI CHINTAMANI DINGANKAR-LD. DR / DATE OF HEARING : 25/11/2020 / DATE OF PRONOUNCEMENT : 25/11/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE REVENUE CHALLENGES THE ORDER OF LD. FIRST AP PELLATE AUTHORITY FOR ASSESSMENT YEAR 2009-10. THE IMPUGNED ORDER HAS DEL ETED THE PENALTY OF RS.2.07 LACS AS LEVIED BY LD. AO U/S 271(1)(C) V IDE ORDER DATED 29/03/2017. 2. THE MATERIAL FACTS ARE THAT AN ASSESSMENT WAS FR AMED FOR THE YEAR UNDER CONSIDERATION U/S 143(3) ON 24/03/2014 WHEREI N THE ASSESSEE WAS ITA NO.4031/MUM/2019 ASSESSMENT YEAR: 2009-10 2 SADDLED WITH ADDITION OF RS.83.83 LACS ON ACCOUNT O F ALLEGED BOGUS PURCHASES. UPON FURTHER APPEAL, LD. FIRST APPELLATE AUTHORITY RESTRICTED THE ADDITIONS TO 8% OF THESE PURCHASES. 3. CONSEQUENTLY, PENALTY PROCEEDINGS WERE INITIATED AGAINST THE ASSESSEE U/S 271(1)(C) AND A PENALTY OF RS.2.07 LAC S WAS LEVIED BY LD. AO VIDE ORDER DATED 29/03/2017. THE ASSESSEE CHALLE NGED THE SAME BEFORE FIRST APPELLATE AUTHORITY. THE LD. CIT(A) OB SERVED THAT THE QUANTUM ADDITIONS WERE ALTERED IN A SIGNIFICANT WAY AND THE ADDITIONS WERE PURELY ON ESTIMATED BASIS AND THEREFORE THE PE NALTY WAS TO BE CANCELED. AGGRIEVED, THE REVENUE IS IN FURTHER APPE AL BEFORE US. 4. WE FIND THAT THE APPEAL IS NOT MAINTAINABLE FOR TWO REASONS. FIRSTLY, THE ADDITIONS AGAINST WHICH THE PENALTY WAS LEVIED WERE MERELY ON ESTIMATED BASIS AND THEREFORE, IT COULD NOT BE SAID THAT THE ASSESSEE CONCEALED ITS INCOME OR FURNISHED INACCURATE PARTIC ULARS OF INCOME. SECONDLY, THE APPEAL IS NOT MAINTAINABLE IN TERMS O F LATEST LOW TAX EFFECT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MIS C. 142/2007- TTJ(PT.) ISSUED BY CBDT. THIS RECENT CIRCULAR FURTH ER ENHANCES THE MONETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 20 18 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08/2018. VIEWING FR OM ANY ANGLE, THE APPEAL STANDS DISMISSED. 5. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED ON 25 TH NOVEMBER, 2020. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 25/11/2020 SR.PS:-JAISY VARGHESE ITA NO.4031/MUM/2019 ASSESSMENT YEAR: 2009-10 3 '# $# / COPY OF THE ORDER FORWARDED TO : 1. '# / THE APPELLANT 2. $%'# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. + ,$- , - , / DR, ITAT, MUMBAI 6. , ./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.