DCIT-199(2)(2), MUMBAI V. M/S. CITY BUILD ARCADE PVT. LTD., MUMBAI

ITA 5492/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9043 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 23-08-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SHEFALI
• 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. 5492 /MUM/ 20 19 ( ASSESSMENT YEAR : 2009 - 2010 ) DCIT - 9(2)(2) ROOM NO.655A, 6 TH FLOOR AAYAKAR BHAVAN CHURCHGATE, MUMBAI - 400020 VS. M/S. CITY BUILD ARCADE PVT. LTD., 9, SAGAR TOWER, FAIR DEAL ROAD, OFF. S.V.ROAD JOGESHWARI (W), MUMBAI 400 102 PAN/GIR NO. AACCC4021C (APPELLANT ) .. (RESPONDENT ) REVENUE BY MS. SHREEKALA PARDESHI ASSESSEE BY MS. SHEFALI DATE OF HEA RING 10 / 03 /202 1 DATE OF PRONOUNCEMENT 10 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5492/MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 16, MUMBAI IN APPEA L NO. CIT(A) - 16/DCIT - 9(2)(2)/IT - 10026/2018 - 19 DATED 21/04/2018 IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961. ITA NO . 5492/MUM/2019 M/S. CITY BUILD ARCADE PVT. LTD., 2 2. THE LD. DR ARGUED VEHEMENTLY THAT THE PENALTY LEVIED BY THE LD. AO IN RESPECT OF DISALLOWANCE MADE ON BOGUS PURCHASES. ACCORDINGLY, IN THE 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 APP LY 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 MAINTAINABL E. ORDER PRONOUNCED 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 . 5492/MUM/2019 M/S. CITY BUILD ARCADE 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//