ITO 31 (1)(5), MUMBAI V. GAUTAM ASHOK VARSHNEY, MUMBAI

ITA 5788/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9889 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 08-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c)

Judgement Text

ITA NO.5787-88/MUM/2018 GAUTAM ASHOK VARSHNEY ASSESSMENT YEARS: 2010-11 & 2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI MANOJ KUMAR AGGARWAL, AM AND HONBLE SHRI RAVISH SOOD, JM ./ I.T.A. NO.5788/MUM/2018 ( / ASSESSMENT YEAR:2010-11) & ./ I.T.A. NO.5787/MUM/2018 ( / ASSESSMENT YEAR:2011-12) INCOME TAX OFFICER - 31 ( 1 )( 5 ) ROOM NO.307, C-13, 3 RD FLOOR B.K.C. BANDRA (E) MUMBAI-51. / VS. SHRI GAUTAM ASHOK VARSHNEY A-45/102 GURUKRUPA CO-OP HSG. SOCIETY GOKULDHAM FILM CITY ROAD, GOREGAON(E), MUMBAI-400 063 ./ ./PAN/GIR NO. ADJPV-4597-M ( ! /APPELLANT ) : ( '#! / RESPONDENT ) ASSESSEE B Y : NONE REVENUE BY : SHRI N.PADNABHAN-SR.DR / DATE OF HEARING : 06/01/2020 / DATE OF PRONOUNCEMENT : 06/01/2020 / O R D E R PER BENCH: 1. AFORESAID APPEALS BY REVENUE FOR ASSESSMENT YEAR S [IN SHORT REFERRED TO AS AY] 2010-11 AND 2011-12 CONTEST CO MMON ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-42, MUMBAI, [I N SHORT REFERRED TO AS CIT(A)], APPEAL NO.CIT(A)-42/IT-315/16-17 AND CIT(A)-42/IT- ITA NO.5787-88/MUM/2018 GAUTAM ASHOK VARSHNEY ASSESSMENT YEARS: 2010-11 & 2011-12 2 314/16-17 DATED 21/06/2018. IN THE SAID APPEAL, LD. CIT(A) HAS DE LETED PENALTY OF RS.28,595/- & RS.50,683/- FOR AYS 2010-1 1 & 2011-12 RESPECTIVELY AS LEVIED BY LD. AO U/S 271(1)(C) VIDE SEPARATE PENALTY ORDERS DATED 28/09/2016. UPON PERUSAL OF PENALTY OR DER PASSED BY LD. AO, IT IS EVIDENT THAT PENALTY WAS LEVIED ON ACCOUN T OF ESTIMATED ADDITIONS AGAINST ALLEGED BOGUS PURCHASES. 2. NONE HAS APPEARED FOR ASSESSEE AND NO VALID ADJO URNMENT APPLICATION IS ON RECORD. THEREFORE, THE MATTER WAS PROCEEDED WITH EX- PARTE QUA THE ASSESSEE SINCE THE REVENUES APPEALS ARE, PRIMA FACIE, COVERED BY LATEST LOW TAX EFFECT CIRCULAR NO.17/201 9 DATED 08/08/2019 [F.NO.279/MISC. 142/2007-TTJ(PT.) ISSUED BY CBDT. 3. THE LD. DR SUBMITTED THAT THE PENALTY WAS LEVIED ON ACCOUNT OF ALLEGED BOGUS PURCHASES AS PER INFORMATION RECEIVED FROM SALES TAX DEPARTMENT, MAHARASHTRA AND THEREFORE, THE APPEAL W OULD BE COVERED BY EXCEPTION GIVEN IN THE SAID CIRCULAR. 4. UPON PERUSAL OF CASE RECORDS, PRIMA FACIE, IT AP PEARS THAT THE TAX EFFECT OF QUANTUM OF PENALTY BEING CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LIMIT OF RS.50 LACS IN BOTH THE YEARS AN D THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.17/20 19 DATED 08/08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THI S RECENT CIRCULAR FURTHER ENHANCES THE MONETARY LIMIT FIXED IN EARLIE R CIRCULAR NO.3 OF 2018 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08 /2018. SO FAR AS THE CONTENTIONS RAISED BY LD. DR ARE CONCERNED, WE ARE OF THE CONSIDERED OPINION THAT QUANTUM PROCEEDINGS AND PEN ALTY PROCEEDINGS WERE SEPARATE PROCEEDINGS AND THE CIRCULAR WOULD AP PLY TO EACH PROCEEDING SEPARATELY. NO SEPARATE EXCEPTION HAS BE EN PROVIDED IN ANY ITA NO.5787-88/MUM/2018 GAUTAM ASHOK VARSHNEY ASSESSMENT YEARS: 2010-11 & 2011-12 3 OF THE CIRCULAR WITH RESPECT TO QUANTUM OF PENALTY. IN VIEW OF THE SAME, WE DISMISS BOTH THE APPEAL. 5. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF ANY OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THAT T HE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR IN CA SE THE TAX EFFECT AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 6. IN THE RESULT, BOTH THE APPEALS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH JANUARY, 2020. SD/- SD/- (RAVISH SOOD) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 06/01/2020 SR.PS, JAISY VARGHESE ! / COPY OF THE ORDER FORWARDED TO : 1. !/ THE APPELLANT 2. '#!/ THE RESPONDENT 3. O ( ) / THE CIT(A) 4. O / CIT CONCERNED 5. XY'%Z, Z, / DR, ITAT, M UMBAI 6. Y[\] / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.