MR.M.K.BINDROO, MUMBAI V. ITO 24 (2)(4), MUMBAI

ITA 5597/MUM/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4000 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHALE L D
• Keywords: Corroborative evidences
• Section: 271(1)(c); 143(3); 13; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUM AR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 5597 / MUM/ 2018 ( / ASSESSMENT YEAR : 2012 - 13 ) MR. MAHARAJ BINDROO F. S . SADIKOT & CO. 17 SUTAR CHAWL, ISMAIL BUILDING, 1 ST FLOOR ROOM NO. 11 MUMBAI - 400 002 / VS. ITO - 24(2)(4) MUMBAI ./ ./ PAN/GIR NO. AABPB - 6053 - F ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI B HARAT ANDHALE LD. SR. D R / DATE OF HEARING : 02/06/2021 / DATE OF PRONOUNCEMENT : 02/ 06/ 2021 / O R D E R MA HAVIR SINGH (VICE PRESIDENT) 1. IN THIS APPEAL FOR ASSESSMENT YEAR (AY) 2012 - 13, THE ASSESSEE IS AGGRIEVED BY CONFIRMATION OF PENALTY OF RS.1,55,766/ - U/S 271(1)(C) BY L D. COMMISSIONER OF INCOME - TAX (APPEALS) - 36 , MUMBAI, [IN SHORT REFERRED TO AS CIT(A)] VIDE IMPUGNED ORDER DATED 21/05/2018. THE ASSESSMENT FOR THE YEAR WAS FRAMED BY LD. ASSESSING OFFICER (AO) U/S 2 143(3) ON 27/03/2015 DETERMINING THE INCOME AT RS.16.41 LACS AS AGAINST RETURNED IN COME OF RS.10.89 LACS. 2. DURING HEARING, NONE APPEARED FOR ASSESSEE. HOWEVER, THE MATERIAL ON RECORD WAS SUFFICIENT FOR DISPOSAL OF THE APPEAL. THE LD. DR PLEADED FOR DISMISSAL OF THE APPEAL. 3. FACTS LEADING TO LEVY OF PENALTY ARE THAT THE ASSESSEE IS A DEALER OF KASHMIRI SHAWLS AND IT REFLECTED BUSINESS LOSS OF RS.4.90 LACS. HOWEVER, SINCE NO SUPPORTING EVIDENCES WERE FURNISHED TOWARDS CLAIM OF EXPENDITURE, THE LOSS WAS DISALLOWED AND THE INCOME WAS COMPUTED ON PRESUMPTIVE BASIS U/S 44AD. CONSEQUENTLY, T HE ASSESSEE WAS SADDLED WITH IMPUGNED PENALTY OF RS.1.55 LACS U/S 271(1)(C) VIDE ORDER DATED 28/09/2015. THE PENALTY, UPON CONFIRMATION BY LD. CIT(A), IS IN FURTHER CHALLENGE BEFORE US. 4. AFTER GOING THROUGH THE FACTUAL MATRIX, WE FIND THAT THE ASSESSEE H AD FURNISHED ITS REVISED COMPUTATION OF INCOME AND OFFERED THE INCOME ON PRESUMPTIVE BASIS @8% DURING ASSESSMENT PROCEEDINGS. THE SAME HAS ULTIMATELY BEEN ACCEPTED BY LD.AO. UNDER THESE CIRCUMSTANCES, THE PENALTY COULD NOT BE LEVIED AS HELD BY AMRITSAR TRI BUNAL IN M/S ROOP SONS & CO. V/S ITO (ITA NO.683/ASR/2013 DATED 26/02/2014), THE COPY OF WHICH IS ON RECORD. THE BENCH, UNDER IDENTICAL FACTUAL MATRIX, NOTED THAT PENALTY WOULD NOT BE LEVIABLE SINCE INCOME WAS DETERMINED PURELY ON ESTIMATION BASIS. WE CONC UR WITH THE SAME AND ACCORDINGLY, DELETE THE PENALTY AS LEVIED BY LD. AO. 5. THE APPEAL STANDS ALLOWED. ORDER PRONOUNCED ON 02 ND JUNE, 2021. 3 SD/ - SD/ - (MANOJ KUMAR AGGARWAL) (MA HAVIR SINGH) / ACCOUNTANT MEMBER / VICE PRESIDENT MUMBAI; DATED : 02/06/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MU MBAI.