ACIT 16(3), MUMBAI V. BHALCHANDRA LOBORATORY, PUNE

ITA 5985/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1767 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 10-10-2013
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN
• Assessee Lawyers: APEKSHA GALA
• Keywords: Fair market value

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI B.R. BA S KARAN (AM) & SHRI AMIT SHUKLA (JM) I.T.A. NO. 5985 /MUM/ 2013 (ASSESSMENT YEAR 200 5 - 0 6 ) ACIT 16(3) MATRU MANDIR 2 ND FLOOR R.NO. 206 TARDEO ROAD MUMBAI - 400 007. VS. M/S. BHALCHANDRA LABORATORY B - 6, YAK & YETI SOCIETY BUNDGARDEN ROAD PUNE - 411001. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAEFD2538E ASSESSEE BY MS. APEKSHA GALA DEPARTMENT BY SHRI M.C.OMI NINGSHEN DATE OF HEARING 8 .1 2 . 201 6 DATE OF PRONOUNCEMENT 8 . 12 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 31.07.2013 PASSED BY LD CIT(A) - 27, MUMBAI DELETING THE PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE ACT FOR THE ASSESSMENT YEAR 2005 - 06. 2. AT T HE TIME OF HEARING, THE LD A.R SUBMITTED THAT THE ASSESSEE HAD DECLARED CAPITAL GAIN ON SALE OF A PROPERTY. THE AO DID NOT ACCEPT THE FAIR MARKET VALUE AS ON 1.4.1981 DECLARED BY THE ASSESSEE AND REDUCED THE SAME, WHICH RESULTED IN THE ADDITION. THE AO L EVIED PENALTY OF RS. 19,11,000/ - ON THE ADDITION SO MADE. HE SUBMITTED THAT THE LD CIT(A) GAVE PARTIAL RELIEF IN THE FIRST ROUND OF THE ORDER. SINCE THE TRIBUNAL SET ASIDE THE MATTER TO THE FILE OF LD CIT(A), THE FIRST APPELLATE AUTHORITY GAVE FURTHER RE LIEF IN THE SECOND ROUND. HE SUBMITTED THAT THE PENALTY AMOUNT WORKS OUT TO RS.6,67,198/ - ONLY ON THE AMOUNT OF ADDITION SUSTAINED BY LD CIT(A). HE SUBMITTED THAT THE REVENUE HAS PREFERRED M/S. BHALCHANDRA LABORATORY 2 APPEAL, SINCE THE FIRST APPELLATE AUTHORITY HAS DELETED THE PENAL TY IN ENTIRETY. SINCE THE PENALTY, UPON GIVING EFFECT TO THE SECOND ORDER OF LD CIT(A), WORKS OUT TO RS.6,67,198/ - (LESS THAN RS.10.00 LAKHS), THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL AS PER THE CIRCULAR NO.21/2015 DATED 10 - 12 - 2015 ISSUED BY CBD T. 3. THE LD D.R DID NOT DISPUTE THE FACTUAL ASPECTS PRESENTED BY LD A.R. 4. SINCE THE PENALTY AMOUNT WORKS OUT TO LESS THAN RS.10.00 LAKHS, THERE IS MERIT IN THE SUBMISSION MADE BY THE LD A.R. ACCORDINGLY BY FOLLOWING THE CIRCULAR OF CBDT, REF ERRED ABOVE, WE DISMISS THE APPEAL OF THE REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 8 .1 2 .2016 SD/ - SD/ - (AMIT SHUKLA ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 8 / 1 2 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS