ITO -5 (1)(2), MUMBAI V. BHUWAL INSULATION CABLE PVT. LTD., MUMBAI

ITA 5645/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8539 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI MAHAVIR SINGH , JM & SHRI M.BALAGANESH, AM ITA NO. 5645 /MUM/201 8 ( ASSESSMENT YEAR : 2011 - 12 ) ITO - 5(1)(2), R.NO.570 5 TH FLOOR, AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 VS. M/S. BH UWAL INSULATION CABLE PVT. LTD., 102, NARAYAN BUILDING 2 ND FLOOR, ARDESHIR DADY STREET, NEAR CP TANK CIRCLE, MUMBAI 400 004 PAN/GIR NO. AACCB7374B (APPELLANT ) .. (RESPONDENT ) REVENUE BY MS. KAVITA P KAUSHIK ASSESSEE BY NONE DATE OF HEARING 08 / 01 /2020 DATE OF PRONOUNCEMENT 15 / 01 /2020 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5645/MUM/2018 FOR A.Y. 2011 - 12 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 10, MUMBAI IN APPEAL NO. CIT (A) - 10, MUMBAI/10921/2016 - 17 DATED 01/06/2018 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPO SITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE CT). ITA NO. 5645/MUM/2018 M/S. BHUWAL INSULATION CABLE PVT. LTD. , 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL OF THE REVENUE IS A S TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE LEVY OF PENALTY U/S.271(1)(C) OF THE ACT IN RESPECT OF DISALLOWANCE MADE ON ACCOUNT OF BOGUS PURCHASES ON ESTIMATED BASIS. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HEARD THE LD. DR AND P ERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT T HE ASSESSMENT WAS COMPLETED U/S.143(3) R.W.S. 147 OF THE ACT ON 19/02/2016 WHEREIN THE ADDITION WAS MADE ON ACCOUNT OF BOGUS PURCHASES. PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT WERE INITIATED ON 2 9/07/2016 FOR THE SAME AND PENALTY WAS LEVIED FOR RS.84,744/ - BY THE LD. AO. WE FIND THAT THE ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES WAS MADE ON ESTIMATED BASIS @12.5% ON THE VALUE OF ALLEGED PURCHASES. WE FIND THAT THE LD. CIT(A) HAD DELETED THE PENA LTY ON THE GROUND THAT PENALTY WAS LEVIED ON ADDITION WHICH WAS MADE ON AN ESTIMATED BASIS. THIS FACT IS NOT IN DISPUTE BEFORE US. WE FIND THAT THE LD. CIT(A) HAD ALSO PLACED RELIANCE ON THE DECISION OF THIS TRIBUNAL IN THE CASE OF DEEPAK GOGRI VS. ITO IN ITA NO.1396/MUM/2018 DATED 23/11/2017 AMONG OTHER DECISIONS TO SUPPORT THE SAID PROPOSITION. WE DO NOT FIND ANY INFIRMITY IN THE SAID REASONING OF THE LD. CIT(A) IN DELETING THE PENALTY. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED ORDER PRONOUNCED IN THE OPEN COURT ON THIS 15 / 01 /2020 SD/ - ( MAHAVIR SINGH ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER ITA NO. 5645/MUM/2018 M/S. BHUWAL INSULATION CABLE PVT. LTD. , 3 MUMBAI ; DATE D 15 / 01 / 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//