MOHD RAZA AKBERALI GHUGHARIA, MUMBAI V. ITO 15(2)(3), MUMBAI

ITA 4603/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8870 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 26-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N S VIRANI
• Keywords: Sale consideration of property below Jantri Value
• Section: 271(1)(c); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBERAND SHRI RAJESH KUMAR , ACCOUNTANT MEMBER ITA NO. 4603 / MUM . /201 8 ( ASSESSMENT YEAR : 20 0 5 06 ) SHRI MOHD. RAZA AKBARALI GHUGARIA M/S. GLOBE STEEL CENTRE 15 B, KHARWA GALLI, OPP. ANJUMAN A ISLAM COLLEGE, MAULANA SHAUKAT ALI ROAD, MUMBAI 400 008 PAN AABPG3107B . APPELLANT V/S INCOME TAX OFFICER WARD 15(2)(3), MUMBAI . RESPONDENT ASSESSEE BY : SHRI N.S. VIRANI REVENUE BY : S MT. JOTHILAKSHMI NAYAK DATE OF HEARING 06.01.2020 DATE OF ORDER 15.01.2020 O R D E R PER SAKTIJIT DEY. J.M. THE CAPTIONED APPEAL HAS BEEN FILED BY THE ASSESSEE CHALLENGING THE ORDER DATED 28 TH MAY 2018, PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 32, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2005 06. 2. WE HAVE HEARD THE PARTIES. THE LEANED COUNSEL FOR THE ASSESSEE SUBMITTED THAT PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS IMPO SED 2 SHRI MOHD. RAZA AKBARALI GHUGARIA ON THE BASIS OF ADDITION MADE TOWARDS LONG TERM CAPITAL GAIN COMPUTED BY APPLYING THE PROVISIONS OF SECTION 50C OF THE ACT. HE SUBMITTED, WHILE DECIDING ASSESSEES APPEAL ARISING OUT OF QUANTUM PROCEEDINGS, THE TRIBUNAL IN ITA NO.8111/MUM./2011, DATED 1 ST JULY 2016, HAS DELETED THE ADDITION MADE BY THE ASSESSING OFFICER AND ACCEPTED THE ASSESSEES COMPUTATION OF LONG TERM CAPITAL GAIN AT NIL. THUS, HE SUBMITTED, SINCE THE ADDITION HAS BEEN DELETED, THE PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT CANNOT SURVIVE. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ACCEPTED THE AFORESAID FACTUAL POSITION. 4. HAVING CONSIDERED RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT IS NO MORE SUSTAINABLE IN VIEW OF THE FACT THAT THE ADDITION ON THE BASIS OF WHICH THE PENALTY HAS BEEN IMPOSED STANDS DELETED BY THE TRIBUNAL WHILE DECIDING ASSESSEES APPEAL AS REFERRED TO ABOVE. ACCORDINGLY, WE DELETE THE PENALTY IMPOSED OF ` 3,56,790, UNDER SECTION 271(1)(C). 5. IN T HE RE SULT, APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN C OURT ON 15.01.2020 SD/ - RAJESH KUMAR ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 15.01.2020 3 SHRI MOHD. RAZA AKBARALI GHUGARIA COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI