DY CIT CIRCLE-12 (1)(1), MUMBAI V. M/S ALUWIND ARCHITECTURAL PVT LTD., Mumbai

ITA 6053/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5181 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 25-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI PAVAN KUMAR GADALE , JM I TA NO. 6053 /MUM/ 2019 ( ASSESSMENT YEAR : 2009 - 10 ) DY.CIT CIRCLE - 12(1)(1) MUMBAI R.NO.128C, 1 ST FLOOR AAYAKAR BHAVAN CHU RCHGATE, MUMBAI VS. M/S. ALUVIND ARCHITECTURAL PVT. LTD., 70C, SHREE NIKETAN GOVT. INDUSTRIAL ESTATE CHARKOP KA NDIVALI ( C) MUMBAI - 400067 PAN/GIR NO. AAFCA 5798A (APPELLANT ) .. (RESPONDENT ) REVEN UE BY SHRI B R AJENDRA KUMAR ASSESSEE BY SHRI HITE N CHANDE DATE OF HEARING 19/04 /202 1 DATE OF PRONO U NCEMENT 19 / 04 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 605 3 /MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 20 , MUMB AI IN APPEAL NO. CIT( A) - 20/IT - 100 27 /2018 - 19 DATED 2 5 /06/2019 (LD. CIT(A) IN SHORT) IN TH E MATTER OF IMPOSITION O F PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER RE FER RED TO AS ACT ) . ITA NO . 6053 /MUM/ 2019 M/S. ALUWIND AR CHITECTURAL PVT. LTD., 2 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL AVAILABLE ON R ECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED 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 GROU ND THAT NO PENALTY WOULD 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 B Y THE CBDT IN ITS CI RCULAR NO. 17/2019 DATED 08/08/2019 FOR PREFERRING APPEAL BY THE REVENUE BEFORE THIS TRIBUNAL. WE FIND THAT THE LD. DR VEHEMENTLY ARGUED THAT THE SAID CASE FALLS WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCOR DINGLY HE ARGUED THA T THE APPEAL IS MAINTAINABLE. 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 H O LD THAT THE APPEAL OF THE REVENUE IS NOT MAI NTAINABLE. 4. IN TH E RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 19/04/2021 SD/ - ( PAVAN KUMAR GAD ALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DAT ED 19 / 04 / 202 1 KARUNA , SR.PS ITA NO . 6053 /MUM/ 2019 M/S. ALUWIND AR CHITECTURAL PVT. LTD., 3 COPY OF THE O RDER FORWARDED TO : BY ORDER, ( ASSTT. REGIST RAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITA T, MUMBAI 6. GUARD FILE. //TRUE COPY//