ITO 9(1)(2), MUMBAI V. CITIZEN SCALES (I) P.LTD, MUMBAI

ITA 4731/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2790 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-04-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 19-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR SINGH
• Keywords: Revised return

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.4731/MUM/2013 ASSESSMENT YEAR- 2009-10 ITO-9(1)(2), R. NO.226, AAYAKAR BHAVAN, MUMBAI-400020 / VS. M/S CITIZEN SCALES (I) P. LTD. SHOP NO.3, PUSHPANJALI BUILDING, GAUSHALA LANE, MALAD (EAST), MUMBAI-400063 ( / REVENUE) ( ! /ASSESSEE) PAN. NO. AABCC3800G / REVENUE BY SHRI PRADEEP KUMAR SINGH- DR ! / ASSESSEE BY SHRI JITENDRA SINGH ' # $ ! % / DATE OF HEARING : 05/11/2015 $ ! % / DATE OF ORDER: 23/11/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 02/04/2013 OF THE LD. FIRST APPELLATE AUTHORITY, M UMBAI, M/S CITIZEN SCALES (I) PVT. LTD. ITA NO.4731/MUM/2013 2 CANCELLING THE PENALTY OF RS. 14,23,483/-, LEVIED U /S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). DURING HEARING, AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT NO TAX IMPLICATION IS INVOL VED IN THE PRESENT APPEAL AS THE ASSESSEE IS ASSESSED U/S 115J B OF THE ACT. RELIANCE WAS PLACED ON THE DECISION FROM HONB LE DELHI HIGH COURT IN THE CASE OF CIT VS. NALWA SONS INVEST MENT LTD. (2010) 327 ITR 543 (DEL.) ON THE OTHER HAND, THE LD . DR DEFENDED THE IMPOSITION OF PENALTY. 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BRIE F ARE THAT THE ASSESSEE COMPANY FILED RETURN, WHICH WAS PROCESSED U/S 143(1) OF THE ACT ON 3 RD MARCH 2011, DETERMINING THE AMOUNT OF RS. 16,89,190/- AS PAYABLE. THE APPEAL OF THE AS SESSEE WAS PROCESSED U/S 143(1) (A) OF THE ACT STRICTLY CALCUL ATING THE BOOK PROFIT AT RS. 2,02,08,283/-, FILED ON 15.10.2009. T HE STAND OF THE ASSESSEE WAS THAT DUE TO INADVERTENCE WRONG HAR D COPY OF COMPUTATION DUE TO CUT AND COPY PEST WAS FILED AND FURTHER THE TAX AMOUNT OF RS. 16,89,190/- WAS PAID ON 29 TH NOV. 2011 I.E. BEFORE COMPLETION OF ASSESSMENT. THE ASSESSING OFFICER IMPOSED PENALTY U/S 271(1)(C) OF THE ACT. WE NOTE T HAT IN PARA 4 OF THE ASSESSMENT ORDER IT HAS BEEN CATEGORICALLY RECORDED THAT THERE WAS A MISTAKE IN COMPUTATION OF BOOK PRO FIT AND THE SAME WAS POINTED OUT BY THE ASSESSING OFFICER DURIN G ASSESSMENT PROCEEDINGS ITSELF AND THEREAFTER THE AS SESSEE IMMEDIATELY PAID THE TAXES. IT IS NOTED THAT THE AS SESSEE FILED THE REVISED RETURN ON 15.10.2009 AND PAID THE TAXES BEFORE M/S CITIZEN SCALES (I) PVT. LTD. ITA NO.4731/MUM/2013 3 COMPLETION OF ASSESSMENT. IN SUCH A SITUATION THE D ECISION FROM HONBLE APEX COURT IN THE CASE OF RELIANCE PET ROPRODUCTS LTD 322 ITR 158 (SC) COMES TO THE RESCUE OF THE ASS ESSEE, WHEREIN, IT WAS HELD THAT MERE MAKING AN INCORRECT CLAIM DOES NOT TANTAMOUNT TO FURNISHING INACCURATE PARTICULARS . IN THE PRESENT APPEAL THE ASSESSEE FILED THE REVISED RETUR N AND PAID THE TAXES, THEREFORE, THERE IS NO LOSS TO THE REVEN UE. IT IS ALSO NOTED THAT THERE IS NEITHER CONCEALMENT OF INCOME N OR FURNISHING OF INACCURATE PARTICULARS OF SUCH INCOME . IN PARA 3.3.5 OF THE IMPUGNED ORDER THERE IS UNCONTROVERTED FINDING THAT COMPLETE FACTS WERE DISCLOSED ALONG WITH THE R ETURN AND THE SAME HAS BEEN REPRODUCED. THE ASSESSEE IN ITS R ETURN OF INCOME (SCHEDULE MAT) COMPUTED TOTAL INCOME U/S 115 JB AT RS. 47,33,537/- AFTER CLAIMING DEDUCTION OF RS. 1,5 4,74,746/- FROM THE NET PROFIT. THUS, IN VIEW OF THE DECISION IN THE CASE OF MS. SANIA MIRZA ( 526 OF 2011) (AP) AND THE DECISIO N FROM HONBLE APEX COURT IN PRICE WATER HOUSE COOPER PVT. LTD. (CIVIL APPEAL NO. 6924 OF 2012), HONBLE BOMBAY HIG H COURT IN THE CASE OF BENNET COLEMNA & COMPANY (ITA NO. 277 O F 2012 DATED 26.2.2013), SOMANI EVERGREEN KNITS LTD. (ITA 1332 OF 2011 ORDER DATED 21.03.2013), AND CIT VS. NALWA SO NS INVESTMENTS LTD. (2010) 327 ITR 543 (DEL.) WE FIND NO INFIRMITY IN THE CONCLUSION OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), HIS STAND IS AFFIRMED. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED M/S CITIZEN SCALES (I) PVT. LTD. ITA NO.4731/MUM/2013 4 THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 05/11/2015. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' # MUMBAI; ' DATED : 23/11/2015 F| FA P.S/. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / ' 0! ( )* ) / THE CIT, MUMBAI. 4. / / ' 0! / CIT(A)- , MUMBAI 5. 23 -! , / )*% ) 4 , ' # / DR, ITAT, MUMBAI 6. 5 6# / GUARD FILE. / BY ORDER, .2*! -! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' # / ITAT, MUMBAI.