ATUL A SANGHVI, MUMBAI V. DCIT CEN CIR 11, MUMBAI

ITA 504/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8155 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 01-03-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 22-01-2014
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO.504, 505, 506, 507, 508, 509, 510 , 511, 512, 513, 514, 515, 516, 517 /MUM./2014 ( ASSESSMENT YEAR: 2001 02, 2002 - 03, 2003 - 04, 2004 - 05, 2005 - 06,2006 - 07, 2007 - 08 ) ATUL A SANGHVI, 1607B, SA NKARSETT, PLACE, NANA CHOWK, MUMBAI 400 007 PAN AHZPS2788P . APPELLANT V/S DCIT CEN CIR 11 MUMBAI . RESPONDENT AS SESSEE BY : SHRI. RAKESH JOSHI REVENUE BY : SHRI. RAJESH KUMAR YADAV DATE OF HEARING 07 .03.2017 DATE OF ORDER - 16.03.2017 O R D E R PER BENCH: ITA NO. 504/MUM/2014 TO ITA NO. 510/MUM/2014 ARE APPEALS BY THE ASSESSEE AGAINST COMMON ORDER OF CIT - A, FOR CONCERNED ASSESSMENT YEARS WHEREIN LD. CIT - A HAS CONFI RMED THE LEVY OF PENALTY OF RS. 25,000 / - EACH U/S. 271 A. ATUL A SANGHVI ITA NO.504, 505, 506, 507, 508, 509, 510, 511,512, 513, 514, 515, 516, 517/MUM./2014 2 2. ITA NO. 511/MUM/2014 TO ITA NO. 5 17/MUM/2014 ARE APPEALS BY THE ASSESSEE AGAINST COMMON ORDER OF LD. CIT - A WHEREIN HE HAS CONFIRMED THE LEVY OF PENA LTY OF RS. 1 LAC EACH U/S. 271 B FOR THE CONCERNED ASSESSMENT YEAR. 3. SINCE THE APPEAL S WERE HEARD TOGETHER THESE ARE BEING CONSOLIDATED AN D DISPOSE D OF TOGETHER BY THIS COMMON ORDER. 4. APPEAL AGAINST PENALTY U/S. 271 A. 5. AT THE OUTSET LD. COUNSEL SUBMITTED THAT PENALTY HAS BEEN LEVIED FOR NON - MAINTENANCE OF BOOKS OF ACCOUNTS. HE SUBMITTED THAT ASSESSEE HAS NOT BEEN DOING ANY BUSINESS HE WAS ONLY RECEIVING COMMISSION . LD. COUNSEL FAIRLY AGREED THAT FOR THE EARNING OF COMMISSION INCOME TOO ASSESSEE SHOULD HAVE MAINTAINED BOOKS OF ACCOUNTS. IN VIEW OF THE AFORESAID ADMISSION BY THE LD. COUNSEL OF THE ASSESSEE THAT ASSESSEE HAS NOT MAINTAINE D REQUIRED BOOKS OF ACCOUNTS WE DO NOT FIND ANY INFIRMITY OF THE ORDER OF LD. CIT - A . A CCORDINGLY WE UPHOLD THE SAME. 6. A PPEALS AGAINST LEVY OF PENALTY U/S. 271 B. 7. O N THIS ISSUE WE NOTE THAT PENALTY HAS BEEN LEVIED FOR NOT GETTING THE ACCOUNTS AUDITED U/S. 44 A B. ON THIS ISSUE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT WHEN THE ASSESSEE HAS BEE N FOUND TO BE NOT MAINTAINING BOOKS OF ACCOUNTS, THERE IS NO QUESTION OF LEVY OF PENALTY U/S. 271 B FOR FAILURE TO GE T THE ACCOUNTS AUDITED . I N THIS ATUL A SANGHVI ITA NO.504, 505, 506, 507, 508, 509, 510, 511,512, 513, 514, 515, 516, 517/MUM./2014 3 REGARD LD. COUNSEL PLACE D RELIANCE UPON FOLLOWING HONBLE ALLAHABAD HIGH COURT DECISION WH EREIN IT WAS HELD THAT WHERE NO BOOKS OF ACCOUNTS ARE MAINTAINED BY THE ASSESSEE PENALTY U/S. 271 B IS NOT ATTRACTED. I) CIT VS. S. K GUPTA & COMPANY ( 322 ITR 0086 ) . II) CIT VS. BISAULI TRACTORS ( 299 ITR 0219 ) 8. NO JURISDICTIONAL HIGH COURT DECISION CONTRARY TO THE ABOVE PROPOSITION WAS BROUGHT BEFORE US. 9. ACCORDINGLY RESPECTFULLY FOLLOWING THE PRECEDENT S FROM THE HONBLE HIGH COURT D ECISION AS ABOVE WE SET ASIDE THE ABOVE ORDERS OF AUTHORITIES BELOW AND DELETE THE LEVY OF PENALTY U/S. 271 B. IN THE RESULT ASSESSEE S APPEAL S IN ITA NO. 504 TO 510 ARE DISMISSED AND ASSESSEES APPEAL IN ITA NO. 511 TO 517 ARE ALLOWED. ORDER PRONO UNCED IN THE OPEN COURT ON 16.03.2017 SD/ - SD/ - RAVISH SOOD SHAMIM YAHIYA JUDICIAL MEMBER ACCOUNTANT MEMBER ATUL A SANGHVI ITA NO.504, 505, 506, 507, 508, 509, 510, 511,512, 513, 514, 515, 516, 517/MUM./2014 4 MUMBAI, DATED: 16.03.2017 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 NISHANT VERMA SR. PRIVATE SECRETARY (DY./ASSTT.REGISTRAR) ITAT, MUMBAI