VERONICA J. CORREIA, MUMBAI V. ITO 26(2)(1), MUMBAI

ITA 5986/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1388 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2002-2003
• Appeal Filed On: 11-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ANIL KUMAR SINGH
• Keywords: Bonafide mistake; TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F : MUMBAI BEFORE SHRI D. MANMOHAN, HONBLE VICE PRESIDENT AND SHRI ANANDI LAL GEHLOT, ACCOUNTANT MEMBER ITA. NOS. 5986, 5987 & 5988/MUM/2009 ASSESSMENT YEARS 2002-2003, 2003-2004 AND 2004-200 5 SMT. VERONICA J. CORREIA MUMBAI 400 067 PAN AFVPC-2886-C VS. ITO 26 (2) (1) MUMBAI. (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI RAJKUMAR SINGH FOR RESPONDENT : DR. ANIL KUMAR SINGH ORDER PER D. MANMOHAN, V.P. 1. THESE APPEALS FILED BY THE ASSESSEE INVOLVED ID ENTICAL ISSUE AND HENCE WE PROCEED TO DISPOSE OF THESE APPEALS BY A COMBINED ORDER FOR THE SAKE OF CONVENIENCE. PENALTY OF RS.8118/-, RS.41,383/- AND RS.2819/- LEVIED BY THE ASSESSING OFFICER UNDER SEC TION 271 (1) (C) OF THE ACT HAVING BEEN CONFIRMED BY THE LEARNED CIT(A), TH E ASSESSEE IS IN APPEAL BEFORE US. 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IS AN EMPL OYEE OF BHARAT PETROLEUM CORPORATION LTD. (HEREINAFTER CALLED AS BPCL). EMPLOYEES OF BPCL BY AND LARGE FILED THEIR RESPECTIVE RETURNS OF INCOME AS PER THE TDS SALARY CERTIFICATE IN FORM 16 AND THUS, IN TURN, DI D NOT DISCLOSE THE MAINTENANCE CHARGES RECEIVED FROM THE EMPLOYER. AS IS THE CASE WITH THE OTHER EMPLOYEES, ASSESSEE IS ALSO ONE OF THE EMPLOY EES WHO RECEIVED CERTAIN AMOUNTS FROM BPCL UNDER THE SCHEME OF SELF- LEASING INTRODUCED BY THE COMPANY. UPON POINTING OUT THE SAID MISTAKE ASSESSEE ACCEPTED THE MISTAKE AND THE SAME WAS ADDED TO THE INCOME OF FERED TO TAX. 2 CONSEQUENT THERETO, ASSESSING OFFICER LEVIED PENALT Y UNDER SECTION 271 (1) (C) OF THE ACT. 3. AT THE TIME OF HEARING, LEARNED COUNSEL, APPEAR ING ON BEHALF OF THE ASSESSEE, RELIED UPON THE FOLLOWING DECISION S OF THE ITAT, MUMBAI BENCHES IN THE CASE OF OTHER EMPLOYEES OF BPCL, WHO WERE SIMILARLY SITUATED, WHEREIN PENALTY LEVIED BY THE ASSESSING O FFICER WAS CANCELLED BY THE TRIBUNAL ON THE GROUND THAT NON-DISCLOSURE O F MAINTENANCE CHARGES WAS ON ACCOUNT OF A BONAFIDE MISTAKE AND HE NCE PENAL PROVISIONS UNDER SECTION 271 (1) (C) OF THE ACT ARE NOT APPLICABLE. (I) ORDER OF ITAT, B BENCH IN THE CASE OF MR. MAKARA ND C. JOSHI VIDE ITA. NO. 3522/MUM/2008 DATED 17-9-2009 (II) ORDER OF ITAT, D BENCH IN THE CASE OF SHRI RAVIND RA LAXMAN SATHE VS. ITO VIDE ITA. NO. 2828/MUM/2008 DA TED 22-12-2009 4. ON THE OTHER HAND LEARNED DR RELIED UPON THE OR DERS PASSED BY THE TAX AUTHORITIES. 5. HAVING REGARD TO THE RIVAL SUBMISSIONS, AND CON SISTENT WITH THE VIEW TAKEN BY THE ITAT, MUMBAI BENCHES UNDER ID ENTICAL CIRCUMSTANCES, WE ARE OF THE VIEW THAT THIS IS NOT A FIT CASE FOR LEVY OF PENALTY UNDER SECTION 271 (1) (C) OF THE ACT. BY RE SPECTFULLY FOLLOWING THE DECISIONS CITED (SUPRA) WE CANCEL THE PENALTY LEVIE D BY THE ASSESSING OFFICER AND ALLOW THE APPEALS OF THE ASSESSEE. ORDER PRONOUNCED ACCORDINGLY IN THE OPEN COURT. SD/- SD/- (ANANDI LAL GEHLOT) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 30 TH JUNE, 2010. VBP/- 3 COPY TO 1. SMT. VERONICA J. CORREIA, FLAT NO. 62, 6 TH FLOOR, NAVLAI CHS LTD. RDP-4, SECTOR-1, CHARKOP MARKET, KANDIVALI (WES T), MUMBAI 067. AFVPC-2886-C 2. ITO 26 (2) (1), SMT. K.G. MITTAL HOSPITAL BLDG., 6 TH FLOOR, CHARNI ROAD (WEST), MUMBAI 400 002. 3. CIT (A)-XXVI, MUMBAI. 4. CIT, M.C-XXVI, MUMBAI. 5. D.R. F BENCH 6. GUARD FILE. (TRUE COPY) BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.