DCIT CIRCLE 12 (1) (1) , Mumbai V. ANJALI KITCHENWARE PRIVATE LIMITED, Mumbai

ITA 5800/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5436 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 09-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Assessee Lawyers: BHARAT PATEL
• Keywords: Bogus purchase
• Section: 271(1)(c); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A MUMBAI BEFORE : SHRI C.N. PRASAD, JM & SHRI M.BALAGANESH, AM ITA NO. 5800/MUM/2019 ( ASSESSMENT YEAR : 2010 - 11 ) DCIT CIRCLE 12(1)(1) R.NO.128 - C, 1 ST FLOOR AAYAKAR BHAVAN CHURCHGATE MUMBAI - 400 020 VS. M/S. ANJALI KITCHENWARE PVT LTD., 170, BOMBAY TALKIES COMPOUND, MALAD (W) MUMBAI 400 064 PAN/GIR NO. AAGCA2518J (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI BRAJENDRA KUMAR ASSESSEE BY SHRI BHARAT PATEL DATE OF HEARING 12 / 05 /202 1 DATE OF PRONOUNCEMENT 12 / 05 /202 1 / O R D E R PER M.BALAGANESH (AM) : THIS APPEAL IN ITA NO .5800/MUM/2019 FOR A.Y. 2010 - 11 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 20 , MUMBAI IN APPEAL NO .CIT(A) - 20/IT - 10023/2018 - 19 DATED 28/05/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) . 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED ITA NO . 5800/MUM/2019 M/S. ANJALI KITCHENWARE PVT. LTD., 2 U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES WAS DELETED BY THE LD. CIT(A) ON THE PRIMARY GROUND THAT NO PENALTY WOUL D SURVIVE ON AN ESTIMATED ADDITION. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. WE FIND AT THE OUTSET, THE LD AR ARGUED THAT PENALTY THAT IS IN DISPUTE BEFORE US, FALLS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT IN ITS CIRCULAR NO. 17/2019 DATE D 08/08/2019 FOR PREFERRING APPEAL BY THE REVENUE BEFORE THIS TRIBUNAL. WE FIND THAT THE LD. DR VEHEMENTLY ARGUED THAT THE SAID CASES FALL WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCORDINGLY HE ARGUED THAT THE APPEALS ARE MAINT AINABLE. WE FIND THAT THE EXCEPTION PROVIDED IN PARA 10(E) OF THE CIRCULAR 17/2019 DATED 08/08/2019 IS APPLICABLE ONLY FOR THE QUANTUM PROCEEDINGS AND THE SAME CANNOT BE MADE APPLICABLE FOR PENALTY PROCEEDINGS. IT IS WELL SETTLED THAT PENALTY AND QUANTUM ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. ACCORDINGLY, WE DISMISS THIS APPEAL OF THE REVENUE BY FOLLOWING THE AFORESAID CIRCULAR NO.17/2019 DATED 08/08/2019 AND HOLD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL OF T HE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 12/05/2021. SD/ - ( C.N. PRASAD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 12 / 05/ 202 1 KARUNA , SR.PS ITA NO . 5800/MUM/2019 M/S. ANJALI KITCHENWARE PVT. LTD., 3 COP Y 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//