DEPUTY COMMISSIONER OF INCOME TAX-9(2)(1), MUMBAI V. M/S BENCHMARK COMPUTER SOLUTION PVT. LTD, MUMBAI

ITA 5487/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3659 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 22-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: THARIAN OOMMEN LD
• Keywords: Bogus purchase; Agreed addition; Tax effect
• Section: 271(1)(c); 143(3)

Judgement Text

ITA NO.5487/MUM/2019 M/S. BENCHMARK COMPUTER SOLUTION PVT. LTD. ASSESSMENT YEAR: 2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.5487/MUM/2019 ( / ASSESSMENT YEAR: 2011-12) PR. CIT - 9 ( 2)(1 ) ROOM NO.655A, 6 TH FLOOR AAYKAR BHAWAN, M.K.ROAD MUMBAI-400 020 / VS. M/S. BENCHMARK COMPUTER S OLUTION PVT. LTD. UNIT-2, SECOND FLOOR, JYOTI WIRE HOUSE PLOT NO.23A, SHAH INDUSTRIAL ESTATE VEERA DESAI ROAD, ANDHERI (W) MUMBAI-400 058 !' ./ ./PAN/GIR NO. AACCB-3357-N ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI THARIAN OOMMEN- LD. DR / DATE OF HEARING : 22/02/2021 / DATE OF PRONOUNCEMENT : 03/03/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (A)-16, MUMBAI [CIT(A)], APPEAL NO.CIT(A)-16/DCIT-9(2)(1)/I T- 10094/2018-19 DATED 15/05/2019 WHICH HAS DELETED TH E PENALTY OF RS.19,278/- U/S 271(1)(C) AS LEVIED BY LD. AO VIDE PENALTY ORDER DATED 13/02/2018. 2. THE ASSESSEE WAS ASSESSED U/S 143(3) R.W.S. 147 ON 26/02/2015 WHEREIN IT WAS SADDLED WITH ADDITION OF RS.4.99 LACS ON ITA NO.5487/MUM/2019 M/S. BENCHMARK COMPUTER SOLUTION PVT. LTD. ASSESSMENT YEAR: 2011-12 2 ACCOUNT OF ALLEGED BOGUS PURCHASES. HOWEVER, UPON F URTHER APPEAL, LD. CIT(A), VIDE ORDER DATED 20/06/2016 RES TRICTED THE QUANTUM ADDITIONS TO THE EXTENT OF 12.5%. CONSEQUEN TLY, IMPUGNED PENALTY WAS LEVIED BY LD. AO AGAINST THE ASSESSEE V IDE ORDER DATED 13/02/2018. UPON FURTHER APPEAL CHALLENGING L EVY OF PENALTY, LD. CIT(A) DELETED THE SAME BY OBSERVING THAT THERE WAS NEITHER CONCEALMENT OF INCOME NOR FURNISHING OF INACCURATE PARTICULARS BY THE ASSESSEE AS THE ASSESSEE HAD TRULY DISCLOSED TH E PURCHASE TRANSACTIONS. FURTHER, NO PENALTY COULD BE LEVIED O N AGREED ADDITIONS. AGGRIEVED, THE REVENUE IS IN FURTHER APP EAL BEFORE US. 3. THOUGH NONE HAS APPEARED FOR ASSESSEE, HOWEVER, IN OUR CONSIDERED OPINION, THE IMPUGNED ORDER WOULD NOT RE QUIRE ANY INTERFERENCE ON OUR PART FOR TWO REASONS. FIRSTLY, THE ADDITIONS WERE MERELY ESTIMATED ADDITIONS FOR UNPROVED PURCHASES A ND THEREFORE, NO CASE OF CONCEALMENT OF INCOME OR FURNISHING OF I NACCURATE PARTICULARS OF INCOME COULD BE MADE OUT AGAINST THE ASSESSEE. SECONDLY, THE REVENUES APPEAL IS NOT MAINTAINABLE IN TERMS OF LATEST LOW TAX EFFECT CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MISC. 142/2007-TTJ(PT.) WHICH PRESCRIBES MINIMUM THRESHOLD LIMIT OF RS.50 LACS FOR REVENUE TO AGITAT E THE MATTER FURTHER BEFORE TRIBUNAL. 4. RESULTANTLY, THE APPEAL STAND DISMISSED. ORDER PRONOUNCED ON 03 RD MARCH, 2021 SD/- SD/- S/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 03/03/2021 SR.PS, JAISY VARGHESE ITA NO.5487/MUM/2019 M/S. BENCHMARK COMPUTER SOLUTION PVT. LTD. ASSESSMENT YEAR: 2011-12 3 / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./% ( 0 , 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.