SHRI BALBIRSINGH BANSAL, MUMBAI V. ACIT 30(1), MUMBAI

ITA 5994/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8941 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 18-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIKLD
• Keywords: Bogus purchase
• Section: 271(1)(c); 143(3)

Judgement Text

ITA NO.5994/MUM/2018 SHRI BALBIRSINGH BANSAL. ASSESSMENT YEAR :2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.5994/MUM/2018 ( / ASSESSMENT YEAR : 2009-10 ) SHRI BALBIR SINGH BANSAL D-201, PLEASANT PARK, EVERSHINE NAGAR, MALAD (W) MUMBAI-400 051 . / VS. A CIT - 30(1) C-15, 5 TH FLOOR BANDRA KURLA COMPLEX, MUMBAI- 400 051. $% ./ ./PAN/GIR NO. AABPB-4008-N ( %' /APPELLANT ) : ( ()%' / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS. KAVITA P. KAUSHIK- LD. DR / DATE OF HEARING : 14/01/2020 / DATE OF PRONOUNCEMENT : 14/01/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2009-10 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-41, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-41/IT/352/15-16 ORDER DATED 02/07 /2018 ON FOLLOWING GROUNDS OF APPEAL: - 1. ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONBLE C.I.T. (A) ERRED IN UPHOLDING THE PENALTY LEVIED BY THE LD. AO OF RS.7, 916/- U/S. 271(1)(C) OF THE IT ACT ITA NO.5994/MUM/2018 SHRI BALBIRSINGH BANSAL. ASSESSMENT YEAR :2009-10 2 AND THE REASONS ASSIGNED FOR DOING ARE WRONG AND CO NTRARY TO THE PROVISIONS OF INCOME TAX AND RULES MADE THEREUNDER. AS EVIDENT FROM GROUND OF APPEAL, THE ASSESSEE IS A GGRIEVED BY CONFIRMATION OF PENALTY U/S 271(1)(C) FOR RS.7,916/ -. 2. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESS EE AND NO VALID ADJOURNMENT APPLICATION WAS PLACED ON RECORD. KEEPI NG IN MIND THE QUANTUM OF PENALTY INVOLVED, THE APPEAL WAS PROCEED ED WITH EX-PARTE QUA THE ASSESSEE. THE LD. DR JUSTIFIED THE PENALTY, RELYING UPON THE ORDERS OF LOWER AUTHORITIES, WHICH WE HAVE ALREADY PERUSED. 3.1 FACTS ON RECORD WOULD REVEAL THAT THE ASSESSEE WAS ASSESSED U/S 143(3) R.W.S. 147 ON 25/03/2015 WHEREIN IT WAS SADD LED WITH ADDITION OF RS.23,296/-, BEING ALLEGED BOGUS PURCHASES STATED TO BE MADE FROM AN ENTITY NAMELY M/S DEEP ENTERPRISES . THE PERUSAL OF QUANTUM ASSESSMENT ORDER ALSO REVEALS THAT ALTHOUGH THE ASS ESSEE PRODUCED VARIOUS DETAILS BUT FAILED TO PRODUCE THE STATED SU PPLIER TO PROVE THE GENUINENESS OF THE TRANSACTIONS. ACCORDINGLY, THE S AID PURCHASES WERE DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. 3.2 CONSEQUENTLY, PENALTY PROCEEDINGS WERE INITIATE D AGAINST THE ASSESSEE ON THIS ADDITION WHICH HAS FINALLY CULMINA TED INTO A PENALTY U/S 271(1)(C) FOR RS.7,916/- VIDE PENALTY ORDER DATED 1 5/09/2015. THE SAME, UPON CONFIRMATION BY LEARNED FIRST APPELLATE AUTHOR ITY, IS UNDER CHALLENGE BEFORE US. 4. UPON CAREFUL CONSIDERATION OF FACTUAL MATRIX AS ENUMERATED IN PRECEDING PARAGRAPHS, IT IS OBSERVED THAT THE QUANT UM ADDITIONS HAVE BEEN MADE PRIMARILY BECAUSE THE ASSESSEE COULD NOT PRODUCE THE SUPPLIER TO PROVE THE GENUINENESS OF THE TRANSACTIO NS. NEVERTHELESS, THE ITA NO.5994/MUM/2018 SHRI BALBIRSINGH BANSAL. ASSESSMENT YEAR :2009-10 3 ASSESSEE WAS IN POSSESSION OF PURCHASE DOCUMENTS. T HERE COULD BE MULTIPLE REASON FOR NON-PRODUCTION OF A THIRD PARTY . IT IS ALSO SETTLED LEGAL POSITION THAT LEVY OF PENALTY IS NOT AUTOMATIC AND MERELY BECAUSE THE QUANTUM ADDITIONS WERE ACCEPTED, THE SAME COULD NOT AUTOMATICALLY LEAD TO IMPOSITION OF PENALTY UNLESS THE ASSESSEE HAD NO BONA-FIDE EXPLANATION. THE GIVEN FACTUAL MATRIX DOES NOT CONV INCE US TO CONFIRM THE PENALTY. THEREFORE, BY DELETING THE SAME, WE ALLOW THE APPEAL 5. THE APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY, 2020. SD/- SD/- (MAHAVIR SINGH) (MA NOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 14/01/2020 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. %' / THE APPELLANT 2. ()%' / THE RESPONDENT 3. 0 ( ) / THE CIT(A) 4. 0 / CIT CONCERNED 5. 12(+3 , 3 , / DR, ITAT, MUMBAI 6. 2456 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.