ITO, WARD 2(4), KALYAN V. SMT. SHANTA ANIL GARAD, AMBERNATH

ITA 5504/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2393 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 23-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , G BENCH MUMBAI BEFORE : SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI M.BALAGANESH, ACCOUNTANT MEMBER ITA NO. 5504 /MUM/ 20 19 ( ASSESSMENT YEAR : 20 09 - 10 ) INCOME TAX OFFICER, WARD 2(4), KALYAN 2 ND FLO OR, MOHAN PLAZA BLDG. WAYLE NAGAR, KHADAKPADA KALYAN WEST 421301 VS. SMT. SHANTA ANIL GARAD PROP. SHIVSHAKTI TRADING CO. 1518/1 & 2, MIDC SHED MORIVALI VILLAGE AMBERNATH 400 092 PAN/GIR NO. AGLPG8260F (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI T.S. KHALSA ASSESSEE BY SHRI SUNIL MAKHIJA DATE OF HEARING 14 / 06 /202 1 DATE OF PRONOUNCEMENT 14 / 06 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5504/MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, MUMBAI IN APPEAL NO. 10122 - THN/18 - 19 DATED 06/06/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1) (C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2. WE HAVE HEARD RIV AL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED ITA NO . 5504/MUM/2019 SMT. SH ANTA ANIL GRAND 2 U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF BOGUS PURCH ASES WAS DELETED BY THE LD. CIT(A) ON THE PRIMARY GROUND THAT NO PENALTY WOULD SURVIVE ON AN ESTIMATED ADDITION. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. WE FIND AT THE OUTSET, THE LD AR ARGUED THAT PENALTY THAT IS IN DISPUTE BEFORE US, FALLS BEL OW THE MONETARY LIMIT PRESCRIBED BY THE CBDT IN ITS CIRCULAR NO. 17/2019 DATED 08/08/2019 FOR PREFERRING APPEAL BY THE REVENUE BEFORE THIS TRIBUNAL. WE FIND THAT THE LD. DR VEHEMENTLY ARGUED THAT THE SAID CASES FALL WITHIN THE EXCEPTION PROVIDED IN PARA 10 (E) OF THE SAID CIRCULAR AND ACCORDINGLY HE ARGUED THAT THE APPEALS ARE MAINTAINABLE. WE FIND THAT THE EXCEPTION PROVIDED IN PARA 10(E) OF THE CIRCULAR 17/2019 DATED 08/08/2019 IS APPLICABLE ONLY FOR THE QUANTUM PROCEEDINGS AND THE SAME CANNOT BE MADE APP LICABLE FOR PENALTY PROCEEDINGS. IT IS WELL SETTLED THAT PENALTY AND QUANTUM ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. ACCORDINGLY, WE DISMISS THIS APPEAL OF THE REVENUE BY FOLLOWING THE AFORESAID CIRCULAR NO.17/2019 DATED 08/08/2019 AND HOLD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 14 / 06 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( MAHAVIR SINGH ) SD/ - ( M.BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI ; DATED 14 / 06 / 2021 ITA NO . 5504/MUM/2019 SMT. SH ANTA ANIL GRAND 3 KARUNA , SR.PS 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//