DY. CIT CIRCLE-12 (1)(1), MUMBAI V. M/S AMBA ENTERPRISES PVT LTD., MUMBAI

ITA 6054/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5183 (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: 2009-2010
• Appeal Filed On: 25-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Keywords: Bogus purchase
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A MUMBAI BEFORE : SHRI M.BALAGANESH, AM & SHRI PAVAN KUMAR GADALE , JM ITA NO. 6054 /MUM/ 2019 ( ASSESSMENT YEAR : 2009 - 10 ) DY. CIT CIRCLE - 12(1)(1) MUMBAI R.NO.128C, 1 ST FLOOR AAYAKAR BHAVAN CHUR CH GATE, MUMBAI VS. M/S. AMBA ENTERPRISES PVT LTD., 430, 4 TH FLOOR, BLUE ROSE INDUSTRY, METRO BAZAR, WESTERN EXPRESS HIGHWAY BORIVALI EAST MUMBAI - 400066 PAN/GIR NO. AAFCA6033R (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI BRAJENDRA KUMAR ASSESSEE BY SHR I NISHIT GANDHI DATE OF HEARING 19 / 04 /202 1 DATE OF PRONOUNCEMENT 19 / 04 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 6054/MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS) - 20 , MUMBAI IN APPEAL NO. CIT( A) - 20/IT - 10015/2018 - 19 DATED 24/06/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) . 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUS ED THE MATERIAL 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 ITA NO . 6054 /MUM/ 2019 M/S. AMBA ENTERPRISES PVT. LTD., 2 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 TH AT 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 PR ESCRIBED BY THE CBDT IN ITS CI RCULA R 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 ACCORDINGLY 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 PROCEE DINGS. IT IS WELL SETTLED THAT PENA LTY 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 MAINTAINABLE. 4. IN TH E RES ULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19/04/2021 SD/ - ( PAVAN KUMAR GADALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUM BAI ; DATED 19 / 04 / 202 1 KARUNA , SR.PS ITA NO . 6054 /MUM/ 2019 M/S. AMBA ENTERPRISES PVT. LTD., 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//