INCOME TAX OFFICER 29(2)(5), MUMBAI V. SHRI PRAKASH DEVSHANKAR THAKKAR, MUMBAI

ITA 5554/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6033 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMAPANI BORA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI BEFORE SHRI C.N. PRASAD , JM & SHRI M.BALAGANESH, AM ITA NO. 5554 /MUM/201 8 ( ASSESSMENT YEAR : 2010 - 11 ) INCOME TAX OFFICER - 29(2)(5), BUILDING NO.C - 10, ROOM NO.206 INCOME TAX OFFICES, PRAT YAKSHAKAR BHAVAN BANDRA - KURLA COMPLEX BANDRA (E), MUMBAI - 400051 VS. SHRI PRAKASH DEVSHANKAR THAKKAR SATGURU SUPREME, MIRANI NAGAR, VALIJI LADHA ROAD MULUND (WEST) MUMBAI 400 080 PAN/GIR NO. AAAPT5471A (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI KUM AR PADMAPANI BORA ASSESSEE BY NONE DATE OF HEARING 06 / 02 /2020 DATE OF PRONOUNCEMENT 14 / 02 /2020 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5554/MUM/2018 FOR A.Y. 2010 - 11 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 40, MUMBAI IN APPEAL NO. CIT(A) - 40/ITBA - 10764/2016 - 17 DATED 25/06/2018 ITA NO .5554/MUM/2018 SHRI PRAKASH DEVSHANKAR THAKKAR 2 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961. 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPE AL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN QUASHING THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT IN RESPECT OF ADDITION MADE TOWARDS PROFIT ELEMENT OF ALLEGED BOGUS PURCHASES. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AND NO PETITION FOR ADJOURNM ENT WAS MADE ON BEHALF OF THE ASSESSEE. ACCORDINGLY, WE PROCEED TO HEAR THE LD. DR AND DISPOSE THE APPEAL BASED ON THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT THE ADDITION WAS MADE TOWARDS PROFIT ELEMENT ON BOGUS PURCHASES IN THE SUM OF RS.1,59,292/ - I N THE ASSESSMENT COMPLETED U/S.143(3) R.W.S. 147 OF THE ACT DATED 16/03/2016. PURSUANT TO THIS ADDITION, PENALTY U/S.271(1)(C) OF THE ACT VIDE ORDER DATED 25/09/2016 IN THE SUM OF RS.47,788/ - BEING 100% OF TAX SOUGHT TO BE EVADED ON THE ADDITION OF RS.1,59 ,292/ - . THE LD. CIT(A) DELETED THE PENALTY U/S.271(1)(C) OF THE ACT BY PLACING RELIANCE ON THE CO - ORDINATE BENCH DECISION OF THIS TRIBUNAL IN THE CASE OF ITO VS. ETCO TELECOM LTD FOR A.YRS 2004 - 05 AND 2005 - 06 IN ITA NOS.5243, 5998 & 5999/MUM/2012 DATED 17/ 12/2014 WHEREIN IT WAS HELD THAT PENALTY IS NOT IMPOSABLE WHEN THE QUANTUM ADDITION WAS MADE ON ESTIMATED BASIS. THE SAID DECISION ALSO HELD THAT IF THE WHOLE ADDITION WAS MADE BASED ON ESTIMATION OR ON THE BASIS OF STATEMENT OF ANOTHER PERSON THAT NO ACTU AL SALES WERE MADE, IT MAY BE A GOOD CASE FOR QUANTUM ADDITION BUT NOT FOR IMPOSITION OF PENALTY. THE EXISTING CASE BEFORE US SQUARELY FALLS INTO THE RATIO LAID DOWN BY THIS TRIBUNAL IN THE CASE REFERRED TO SUPRA WHICH HAS BEEN RIGHTLY FOLLOWED BY THE LD. CIT(A) IN OUR CONSIDERED OPINION. HENCE, WE DO NOT ITA NO .5554/MUM/2018 SHRI PRAKASH DEVSHANKAR THAKKAR 3 FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) DELETING THE PENALTY. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRO NOUNCED IN THE OPEN COURT ON THIS 14 / 02 /2020 SD/ - ( C.N. PRASAD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 14 / 02 / 2020 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//