ITO -29(1)(1), MUMBAI V. ASHISH RAMESH POKAR, MUMBAI

ITA 5799/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8548 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MICHAEL JERALD
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI BEFORE SHRI MAHAVIR SINGH , JM & SHRI M.BALAGANESH, AM ITA NO. 5799 /MUM/201 8 ( ASSESSMENT YEAR : 2009 - 10 ) ITO - 29(1)(1), R.NO.101 C - 10, 1 ST FLOOR B.K.C. PRATYANKSHAKAR BHAVAN B.K.C. BANDRA (E) MUMBAI 400 051 VS. SHRI ASHISH RAMESH POKAR A - 11, 122, GEETA PRAKASH GARODIA NAGAR GHATKOPAR (W) MUMBAI 400 083 PAN/GIR NO. AAFPP8570K (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI MICHAEL JERALD ASSESSEE BY NONE DATE OF HEARING 08 / 01 /2 020 DATE OF PRONOUNCEMENT 15 / 01 /2020 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5799/MUM/2018 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 39, MUMBAI IN APPEAL NO. CIT(A) - 39/IT - 102 77/15 - 16 DATED 29/06/2018 (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). 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL OF THE REVENUE IS AS 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. ITA NO .5799/MUM/2018 SHRI ASHISH RAMESH POKAR 2 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HEARD THE LD. DR AND PERUSED 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 20/02/2015 WHEREIN THE ADDITION WAS MADE ON ACCOUNT OF BOGUS PURCHASES IN THE SUM OF RS.1,42,155/ - . PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT WERE INITIA TED FOR THE SAME AND PENALTY WAS LEVIED FOR RS.28,790/ - 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 PENALTY ON THE GROUND THAT SINCE THE QUANTUM ADDITION WAS MADE ON ESTIMATE D BASIS , CONCEALMENT PENALTY LEVIED THEREON WOULD NOT SURVIVE. THIS FACT IS NOT IN DISPUTE BEFORE US. WE FIND THAT THE LD. CIT(A) HAD ALSO PLACED RE LIANCE ON THE DECISION OF HONBLE PUNJAB AND HARYANA HIGH COURT IN THE CASE OF HARIGOPAL SINGH VS. CIT REPORTED IN 254 ITR 85 ( P & H) 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 MEMBE R ACCOUNTANT MEMBER MUMBAI ; DATED 15 / 01 / 2020 KARUNA , SR.PS ITA NO .5799/MUM/2018 SHRI ASHISH RAMESH POKAR 3 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//