DEPUTY COMMISSIONER OF INCOME TAX-9(2)(2), MUMBIA V. M/S. CIRON DRUGS & PHARMACEUTICALS PVT. LTD, MUMBIA

ITA 5485/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9090 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 22-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH MUMBAI BEFORE : SHRI M.BALAGANESH, AM & SHRI RAVISH SOOD , JM ITA NO. 54 85 /MUM/ 20 19 ( ASSESSMENT YEAR : 20 10 - 11 ) DCIT - 9(2)(2) ROOM NO.655A, 6 TH FLOOR AAYAKAR BHAVAN CHURCHGATE, MUMBAI - 40 0020 VS. M/S. CIRON DRUGS & PHARMACEUTICALS PVT. LTD., 16, ALPHA APT., M.G. ROAD VILE PARLE (E) MUMBAI 400 057 PAN/GIR NO. AABCC0873D (APPELLANT ) .. (RESPONDENT ) REVENUE BY MS. SHREEKALA PARDESHI ASSESSEE BY NONE DATE OF HEARING 10 / 03 /20 2 1 DATE OF PRONOUNCEMENT 10 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 54 85 /MUM/2019 FOR A.Y. 20 1 0 - 11 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 16, MUMBAI IN APPEAL NO. CIT(A) - 16/DCIT - 9(2)(2)/IT - 10001 /2018 - 19 DATED 31/05/2019 IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961. 2. THE LD. DR ARGUED VEHEMENTLY THAT THE PENALTY LEVIED BY THE LD. AO IN RESPECT OF DISALLOWANCE MADE ON BOGUS PURCHASES. ACCORDIN GLY, IN THE ITA NO . 54 85 /MUM/2019 M/S. CIRON DRUGS & PHARMACEUTICALS PVT. LTD., 2 OPINION OF THE LD. DR, THE SAME WOULD FALL WITHIN THE EXCEPTION PROVIDED IN THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. WE FIND THAT THE EXCEPTION PROVIDED IN THE SAID CIRCULAR DATED 08/08/2019 ISSUED BY THE CBDT WOULD APPLY ONLY IN RESPECT OF QUANTUM ASSESSMENT PROCEEDING AND THE SAME CANNOT BE MADE APPLICABLE FOR PENALTY PROCEEDING AND IT IS WELL SETTLED THAT PENALTY PROCEEDING AND ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. IN VIEW OF THIS, WE ARE INCLINED TO TREAT THIS APPEAL AS NOT MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019 TREATING IT AS AN APPEAL INVOLVING TAX EFFECT LESS THAN THE PRESCRIBED MONETARY LIMIT. 3 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. ORDER PRONOUN CED IN THE OPEN COURT ON 10 / 03 /202 1 . SD/ - ( RAVISH SOOD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 10 / 03 / 2021 KARUNA , SR.PS ITA NO . 54 85 /MUM/2019 M/S. CIRON DRUGS & PHARMACEUTICALS PVT. LTD., 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//