INCOME TAX OFFICER 29(3)(3), MUMBAI V. SMT.SEEMA R SINGH, MUMBAI

ITA 5531/MUM/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 3997 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PIYUSH C BOLIA
• Keywords: Bogus purchase
• Section: 143(1); 201; 274; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI S RIFAUR RAHMAN , ACCOUNTANT MEMBER & SHRI RAVISH SOOD, JUDICIAL MEMBER ./ I.T.A. NO. 5531 & 5532 / MUM / 201 8 ( / ASSESSMENT YEAR S : 20 1 0 - 11 & 2011 - 12 ) ITO 29(3)(3) ROOM NO. 306, 3 RD FLOOR, PRATYAKSHKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E) MUMBAI. / VS. SMT. SEEMA R SINGH A/18, CHANDRAKUNJ, CHS, 2 ND FLOOR, NEAR RAILWAY STATION, VIKHROLI (W), MUMBAI. ./ ./ PAN/GIR NO. : AVDPS 4533 N ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD KUMAR, DR / RESPONDENT BY : SHRI PIYUSH C BOLIA , AR / DATE OF HEARING 28 /11 /2019 / DATE OF PRONOUNCEMENT 10.12.2019 / O R D E R PER S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) : BOTH THE APPEALS ARE FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) - 40, MUMBAI DATED 28.06 .201 8 FOR THE A.Y S 201 0 - 11 & 2011 - 12 . 2. BRIEF FACTS OF THE CASE ARE THAT THAT ASSESSEE FILED HER RETURN OF INCOME FOR THE A.Y 2010 - 11 ON 24.09.2010, ITA NO. 5531 & 5532 / /MUM/2018. SMT. SEEMA R. SINGH , MUMBAI . - 2 - DECLARING TOTAL INCOME OF RS. 3,71,322/ - WHICH WERE ACCEPTE D U/S 143(1) OF THE ACT. SUBSEQUENTLY INFORMATION RECEIVED FROM SALES TAX DEPARTMENT AND DGIT (INV), MUMBAI INFORMING THAT ASSESSEE HAS MADE PURCHASES FROM HAWALA ENTRY PROVIDERS. ACCORDINGLY , THE ASSESSMENTS WERE REOPENED , THE REASSESSMENT WAS COMPLETED VIDE ORDER DATED 29.01.2016 BY DETERMINING THE TOTAL INCOME AT RS. 18,90,620/ - . IN THE ABOVE ASSESSMENT A.O ESTIMATED THE GROSS PROFIT @ 12.5% ON SALES MADE BY THE ASSESSEE AND MADE ADDITION OF RS. 15,19,293/ - ON ACCOUNT OF SUPPRESSION OF GROSS PROFIT TH ROUGH BOGUS PURCHASES. THE A.O ALSO INITIATED PENALTY PROCEEDINGS U/S 271(C) OF THE ACT BY ISSUE NOTICE U/S 274 OF THE ACT AND LEVIED PENALTY OF RS. 4,69,462/ - VIDE ORDER DATED 26.07.2016. 3. AGGRIEVED WITH THE ORDER OF THE A.O THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). 4. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND BY RELYING ON THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF ITO VS. ETCO TELECOM LTD., IN ITA NO. 5243, 5998 & 5999/MUM/2012 AND IN THE CASE OF ACIT V S. M/S BALAJI CONSTRUCTIONS IN ITA NO. 217/MUM/2015 ITA NO. 5531 & 5532 / /MUM/2018. SMT. SEEMA R. SINGH , MUMBAI . - 3 - HAS DELETED THE PENALTY LEVIED BY THE A.O. AGGRIEVED WITH THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 5. AT THE TIME OF HEARING, IT IS BROUGHT TO OUR NOTICE THAT THE PENALTY WAS LEVIED ON THE ALL EGE D BOGUS PURCHASES AND THE INCOME WAS ESTIMATED , THE SAME WAS ALSO CONFIRMED BY THE LD. DR. THEREFORE, IN OUR CONSIDERED VIEW AND IN THE CATENA OF CASES THE COURTS HAVE HELD THAT THE PENALTY CANNOT BE LEVIED WHEN THE INCOME OF THE ASSESSEE IS ESTIMATED. THEREFORE, THE PENALTY DELETED BY THE CIT(A) IS JUSTIFIED AND PROPER. ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED. 6. THE FACTS IN ITA NO. 5532/MUM/2018 ARE ALSO SIMILAR TO THE ABOVE CASE EXCEPT VARIANTS IN FIGURES. ACCORDINGLY, THE APPEAL OF THE REVENUE IS DISMISSED. 7 . IN THE RESULT BOTH THE APPEALS FILED BY THE REVENUE ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 10 /12 /201 9 . SD/ - SD/ - (RAVISH SOOD) ( S RIFAUR RAHMAN ) (JUDICIAL MEMBER) ACCOUNTANT MEMBER ITA NO. 5531 & 5532 / /MUM/2018. SMT. SEEMA R. SINGH , MUMBAI . - 4 - MUMBAI, DATED 10 /12 /20 1 9 KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// 1. / ( ASST. REGISTRAR) , / ITAT, MUMBAI 6. DATE