SURYODAY SMALL FINANCE BANK LIMITED (EARLIER KNOWN AS SURYODAY MICRO FINANCE LIMITED ), MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX 15(3)(2), MUMBAI

ITA 5196/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4248 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 08-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c); 43B; 143(3); 143(1); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , AM AND SHRI AMARJIT SINGH, JM / I .T.A. NO. 5196 /MUM/20 1 7 ( / ASSESSMENT YEAR: 2013 - 14 ) M/S. SURYODAY SMALL FINANCE BANK LTD, (EARLIER KNO WN AS SURYODAY MICRO FINANCE LTD.) 1101, SHARDA TERRACES, PLOT NO. 65, SECTOR - 11, CBD BELAPUR, NAVI MUMBAI - 400614 . / VS. DCIT - 15(3)(2) AAYKAR BHAVAN, MAHARESHI KARVE ROAD, MUMBAI - 400020. ./ ./ PAN/GIR NO. : AAMCS5499J ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING : 03 . 01 .201 9 / DAT E OF PRONOUNCEMENT : 13. 0 3 .2019 / O R D E R PER AMARJIT SINGH, J M: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 25 .0 5 .201 7 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 24 , MUMBAI [HEREINAFTE R REFERRED TO AS T HE CIT(A)] RELEVANT TO THE A.Y. 2013 - 14 WHERE IN THE PENALTY LEVIED BY THE AO HAS BE EN ORDERED TO BE CONFIRM . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: - ASSESSEE BY : MS. MANSHI PADHIAR REVENUE BY: SHRI ASHISH KUMAR (DR) ITA. NO.5196 /M/201 7 A.Y. 20 13 - 14 2 1 .1 ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT(A) - 24 ERRED IN CO NFIRMING THE ACTION OF THE DEPUTY COMMISSIONER OF INCOME TAX, WARD 15(3)(2), MUMBAI OF LEVYING PENALTY OF 1,93,873/ - U/S 271(C) OF THE ACT, ON THE ALLEGED GROUND THAT THE APPELLANT HAD FURNISHED INACCURATE PARTICULARS OF INCOME. THE HONBLE CIT(A) FAILED T O APPRECIATE THE FACT THAT THE APPELLANT HAD DISCLOSED ALL THE RELEVANT FACTS AND ONLY ON THE BASIS OF SUCH DETAILS/FACTS, ADDITION WAS MADE BY THE AO. 1.2 THE APPELLANT THEREFORE, PRAYS THAT THE LD. AO BE DIRECTED TO DELETE THE PENALTY LEVIED UNDER SECTIO N 271(1)(C) OF THE ACT. GROUND II THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND AND/OR ALTER ALL OR ANY OF THE ABOVE GROUNDS. 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETUR N OF INCOME ON 30.09.2013 DECLARING TOTAL INCOME TO THE TUNE OF RS.3,98,43,740/ - . THE SAME WAS PROCESSED U/S 143(1) OF THE I.T. ACT, 1961. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS. THE ASSESSMENT OF THE ASSESSEE WAS COMPLETED U/S 143(3) OF THE I.T. ACT 1961 ON 08.03.2016. THE PENALTY PROCEEDING WAS INITIATED IN RE SPECT OF LOSS ON SALE OF ASSETS TO THE TUNE OF RS.5,71,897/ - AND DISALLOWANCE U/S 43B TO THE TUNE OF RS.3,26,351/ - . THE NOTICE WAS ISSUED AND AFTER HEARING THE ASSESSEE ON LENGTH , THE AO LEVIED THE PENALTY ON ACCOUNT OF LOSS ON SALE OF ASSE TS TO THE TUNE OF RS.5,71,897/ - . FEELING AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE, THEREFORE, THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 4 . WE HAVE HEARD THE ARGUMENT ADVANCED BY THE LD. R EPRESENTATIVE OF THE PARTIES AND PERUSED THE RECORD. THE AS SESSEE SOLD THE ASSETS AND SHOWED THE LOSS WHICH WAS DEBITED UNDER THE HEAD ITA. NO.5196 /M/201 7 A.Y. 20 13 - 14 3 OF OTHER EXPENSES. THE LOSS WAS NOT ALLOWABLE BEING CAPITAL IN NATURE. THEREFORE, THE SAME WAS DECLINED AND ADDED TO THE INCOME OF THE ASSESSEE. UNDOUBTEDLY, THE CLAIM OF THE ASSESSEE WAS DISALLOWED BUT THERE IS A DEC LARATION OF EACH AND EVERY FACT ON RECORD. THE ASSESSEE DISCLOSED THE FACTS IN FINANCIAL STATEMENT IN SCHEDULE NO. 22 AS WELL AS THE TAX AUDITED REPORT . THE AS SESSEE NOWHERE CONCEAL THE INCOME OR FURNISHED THE INACCURATE PARTICULARS OF INCOME. T HE DISALLOWANCE OF CLAIM NOWHERE ATTRACT THE PENALTY IN VIEW OF THE LAW SETTLED IN CIT VS. RELIANCNE PETROPRODUCTS P. LTD. (322 ITR 158) (SC). IN VIEW OF THE SAID CIRCUMS TANCES, WE ARE OF THE VIEW THAT THE ORDER OF THE CIT(A) IS WRONG AGAINST LAW AND FACTS IN THE EYES OF LAW , THEREFORE, WE SET ASIDE THE FINDING OF THE CIT(A) ON THESE ISSUES AND DELETE THE PENALTY. 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS HEREB Y ORDERED TO BE ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 13. 03. 201 9 SD/ - SD/ - ( SHAMIM YAHYA ) (AMARJIT SINGH) ACCOUNTANT MEMBER J UDIC IAL MEMBER MUMBAI; DATED : 13. 03. 2019 V IJAY ITA. NO.5196 /M/201 7 A.Y. 20 13 - 14 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / / (DY./ASSTT. REGISTRAR) , / ITA T, MUMBAI