DCIT (OSD) 2(3), MUMBAI V. PHULCHAND SONS INVESTMENTS P. LTD, MUMBAI

ITA 5284/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88441 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 10-03-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 31-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PERMANAND J
• Assessee Lawyers: HETAL
• Keywords: Business income; Tax effect

Judgement Text

, INCOME TAX APPELLATE TRIBUNAL,MUMBAI - C BENCH. , , BEFORE S/SH.VIJAY PAL RAO, JUDICIAL MEMBE R & RAJENDRA,ACCOUNTANT MEMBER /. ITA NO.5284/MUM/2013, ! ! ! ! ' ' ' ' / ASSESSMENT YEAR-2003-04 DCIT (OSD)-2(3), R.NO. 552, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 VS M/S PHULCHAND SONS INVESTMENTS PVT. LTD.,CABIN NO.4, C/O. K.M. REALITIES PVT. LTD., 4TH FLOOR, BHAGYODYA BUILDING, 79, N.M.ROAD, FORT, MUMBAI-400023 PAN: AAACP8901G ( #$ / APPELLANT) ( %&#$ / RESPONDENT) ' ( / REVENUE BY : SHRI PERMANAND J. !)* !)* !)* !)* ( ( ( ( / ASSESSEE BY : SHRI HETAL PANCHAL ! ! ! ! ' '' ' *+ *+ *+ *+ / DATE OF HEARING : 10-03-2015 ,-' ' *+ / DATE OF PRONOUNCEMENT : 10-03-2015 ! ! ! ! 1961 ' '' ' 254(1) *.* *.* *.* *.* / / / / ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA,AM ! ! ! ! : CHALLENGING THE ORDER DATED 16.05.2013 OF THE CIT(A )-5, MUMBAI, THE ASSESSING OFFICER (AO) HAS FILED FOLLOWING GROUNDS OF APPEAL: 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE PENALTY U/S. 271(1)(C) OF THE IT ACT, WITHOUT A PPRECIATING THAT THE ASSESSEE MADE A WRONGFUL CLAIM TO SET OFF ITS BUSINESS INCOME AGAINST THIS S PECULATION LOSS AND THUS EVADED THE TAX LIABILITY T O THE TUNE OF RS. 3,00,571/- THEREBY CONCEALING TRUE PARTICULARS OF INCOME IN TERM OF EXPLANATION 1 TO SECTION 271(1)(C) OF THE IT ACT.' 2. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE PENALTY U/S. 271(1)(C) IGNORING THAT FOR LEVYIN G PENALTY U/S. 271(1)(C), MENS-REA WAS NOT APPLICABLE IN VIEW OF EXPLANATION 1 TO THE SECTION 271(1)(C) OF THE IT ACT.' 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE DECISION OF THE CIT(A) MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED. 2. AT THE TIME OF HEARING BEFORE US,REPRESENTATIVE OF BOTH THE SIDES AGREED THAT THE TAX EFFECT IN THE CASE UNDER CONSIDERATION WAS BELOW PRESCRIBED TAX L IMIT,THAT THE APPEAL WAS NOT MAINTAINABLE. WE FIND THAT IN THIS CASE THE AO HAD LEVIED PENALTY OF RS.3,00,571/- U/S.271(1)(C) OF THE ACT FOR CONCEALING PARTICULARS OF INCOME.IN THE APPELLATE P ROCEEDINGS,THE FIRST APPELLATE AUTHORITY (FAA) DELETED THE PENALTY.AS THE TAX EFFECT IN THE CASE U NDER CONSIDERATION IS BELOW THE LIMIT PRESCRIBED BY THE CBDT FOR FILING APPEAL BEFORE THE TRIBUNAL,S O,WE ARE DISMISSING THE APPEAL FOR LOW TAX EFFECT AND NOT ON MERITS. AS A RESULT, APPAL FILED BY THE AO STANDS DISMISSED. 1*2 !)* + 3 4 ' . !5 ' * 67. ORDER PRONOUNCED IN TH E OPEN COURT ON 10TH, MARCH,2015 . / ' ,-' 9 :! 10 ; , 201 5 - ' . < ITA/5284MUM/2013- M/S PHULCHAND SONS INVESTMENTS PVT. LTD. 2 SD/- SD/- ( / VIJAY PAL RAO) ( / RAJENDRA) / JUDICIAL MEMBER /ACCOUNTANT MEMBER / MUMBAI, :! /DATE: 10.03 . 2015. SK / / / / ' '' ' %* %* %* %* ='* ='* ='* ='* / COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE / #$ 2. RESPONDENT / %&#$ 3. THE CONCERNED CIT(A)/ > ? , 4. THE CONCERNED CIT / > ? 5. DR C BENCH, ITAT, MUMBAI / @. %*! , . . . 6. GUARD FILE/ . 1 &* &* &* &* %* %*%* %* //TRUE COPY// /! / BY ORDER, A / 6 DY./ASST. REGISTRAR , /ITAT, MUMBAI.