ACIT 27(3), NAVI MUMBAI V. SAI DEVELOPERS, MUMBAI

ITA 4380/MUM/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9964 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2001-2002
• Appeal Filed On: 16-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAHUL K HAKANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH , JM ITA NO. 4380 / MUM/20 15 ( ASSESSMENT YEAR : 2001 - 02 ) ACIT 27(3) 4 TH FLOOR, TOWER NO.6 VASHI RAILWAY STATION COMPLEX, VASHI VS. SAI DEVELOPERS 23, KAILAS NAGAR, M.G. ROAD, GHATKOPAR (E) MUMBAI PAN/GIR NO. AAAA50048F APPELLANT ) .. RESPONDENT ) REVENUE BY SHRI SAURABH KUMAR RAI ASSESSEE BY SHRI RAHUL K HAKANI DATE OF HEARING 23 / 03 /201 8 DATE OF PRONOUNCEME NT 25 / 03 /201 8 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY REVENUE AGAINST THE ORDER OF CIT(A) - 25, MUMBAI DATED 29/04/2015 FOR A.Y.2001 - 02 IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE IT ACT. 2. IN THIS CA SE, PENALTY WAS IMPOSED WITH RESPECT TO DISALLOWANCE MADE ON ACCOUNT OF ROAD EXPENSES. WE FOUND THAT AO HAS DISALLOWED ROAD EXPE NDITURE OF RS.25 LAKHS. THE CIT(A) VIDE ITS ORDER DATED 21/02/2011 UPHELD ADDITION TO THE EXTENT OF RS.21,31,854/ - . THEREAFTER, TRIBUNAL VIDE ORDER DATED 11/06/2014 UPHELD THE DISALLOWANCE TO THE EXTENT OF RS.19 LAKHS. FOR THIS 19 LAKHS, AO IMPOSED PENALTY, WHICH WAS DELETED BY CIT(A) AFTER GIVING DETAILED FINDING. ITA NO. 4380/MUM/2015 M/S. SAI DEVELOPERS 2 3. AT THE OUTSET, LEARNED AR SUBMITTED THAT THE TAX EFFECT ON THE D ISALLOWANCE OF RS.19 LAKHS WORKS OUT TO BE RS.6,59,680/ - . SINCE THE TAX EFFECT IS LESS THAN RS.10 LAKHS, THE APPEAL IS NOT MAINTAINABLE IN TERMS OF CBDT CIRCULAR 21/15 DATED 10/12/2015 AS REPORTED AT 279 ITR 107. 4. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT PENALTY HAS BEEN LEVIED WITH RESPECT TO DISALLOWANCE OF RS.19 LAKHS ON ACCOUNT OF ROAD EXPENSES. THE PENALTY ON WHICH WORKS OUT TO RS.6,59,680/ - . THIS PENALTY WAS DELETED BY CIT(A) AND REVENUE IS IN FURTHER APPEAL BEFORE US . SINCE, THE TAX EFFECT IS LESS THAN RS.10 LAKHS IN TERMS OF CBDT CIRCULAR NO.21/2015 DATED 10/12/2015, WE OBSERVE THAT THIS APPEAL IS NOT MAINTAINABLE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 25 / 03 /201 8 S D/ - ( AMARJIT SINGH ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 25 / 03 /201 8 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE AP PELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//