INCOME TAX OFFICER 9(2)(2), MUMBAI , MUMBAI V. CAPRO VALVAS & CONTROLS PRIVATE LIMITED, MUMBAI

ITA 5980/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4931 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEV VORA
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH MUMBAI BEFORE : SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI M.BALAGANESH, A CCOUNTANT M EMBER ITA NO. 5980 /MUM/ 20 19 ( ASSESSMENT YEAR : 20 09 - 10 ) & ITA NO. 5981 /MUM/ 2019 ( ASSESSMENT YEAR : 2011 - 12 ) ITO 9(2)(3) ROOM NO.601A, 6 TH FLOOR AAYAKAR BHAVAN CHURCHGATE, MUMBAI 400 020 VS. M/S. CAPRO VALVES & CONTROLS PVT. LTD., GALA NO.5, SURAT SINGH ESTATE CHAWL BEHIND AGARWAL INDUSTRIAL ESTATE, OFF S.V. ROAD MUMBAI - 400 102 PAN/GIR NO. AACCC4119R (AP PELLANT ) .. (RESPONDENT ) REVENUE BY SHRI DEV VORA ASSESSEE BY MS. SHREEKALA PARDESHI DATE OF HEARING 31 / 03 /202 1 DATE OF PRONOUNCEMENT 31 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THESE APPEAL S IN ITA NO. 5980/MUM/2019 & 5981/MUM/2019 FOR A.Y. 2009 - 10 & 2011 - 12 ARISE OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 16, MUMBAI IN APPEAL NO. CIT(A) - 16/IT - 10385/ITO - 9(2)(2)/2018 - 19 & CIT(A) - 16/IT - 10386/ITO - 9(2)(2)/2018 - 19 RESPECTIVELY ITA NO S . 5980 & 5981/MUM/2019 M/S. CAPRO VALVES & CONTROLS PVT. LTD., 2 DATED 28/06/2019 (LD. CIT( A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT (HEREINAFTER REFERRED TO AS ACT) . 2. THE LD. DR ARGUED VEHEMENTLY THAT THE PENALTY LEVIED BY THE LD. AO IN RESPECT OF DISALLOWANCE MADE ON BOGUS PURCHASES. ACCORDINGLY , IN THE OPINION OF THE LD. DR, THE SAME WOULD FALL WITHIN THE EXCEPTION PROVIDED IN THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. WE FIND THAT THE EXCEPTION PROVIDED IN THE SAID CIRCULAR DATED 08/08/2019 ISSUED BY THE CBDT WOULD APPLY ONLY IN RESPECT OF QUANTUM ASSESSMENT PROCEEDING AND THE SAME CANNOT BE MADE APPLICABLE FOR PENALTY PROCEEDING AND IT IS WELL SETTLED THAT PENALTY PROCEEDING AND ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. IN VIEW OF THIS, WE ARE INCLINED TO TREAT THESE APPEALS AS NOT MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019 TREATING IT AS AN APPEAL INVOLVING TAX EFFECT LESS THAN THE PRESCRIBED MONETARY LIMIT. 3. IN THE RESULT, APPEAL S FILED BY THE REVENUE ARE DISMISSED AS NOT MAINTAINABLE. ORDER PRONOUN CED IN THE OPEN COURT ON 31/03/2021. SD/ - ( MAHAVIR SINGH ) SD/ - (M.BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI ; DATED 31 / 03 / 2021 KARUNA , SR.PS ITA NO S . 5980 & 5981/MUM/2019 M/S. CAPRO VALVES & CONTROLS PVT. LTD., 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( A SSTT. REGISTRAR) ITAT, MUMBAI 1. T HE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//