ACIT -CIRCLE -7(3)(2), MUMBAI V. PRINTEL CARDZ PVT. LTD., MUMBAI

ITA 6131/MUM/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 4007 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 26-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMAPANI BORA
• Keywords: Bogus purchase
• Section: 143(1); 274; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JM & SHRI S . RIFAUR RAHMAN, AM ./ I.T.A. NO . 6131 / MUM/ 2018 ( / ASSESSMENT YEAR: 20 10 - 11 ) A.C.I.T, CIRCLE - 7(3)(2) 1 ST FLOOR, ROOM NO. 128A, AAYKAR BHAVAN, M.K. ROAD, MUMBAI - 40002 0 . / VS. M/S. PRINTEL CARDZ PVT. LTD. 135 A - Z INDUSTRIAL ESTATE, G.K MARG, LOWER PAREL, MUMBAI - 400 013 ./ ./ PAN NO. AA DCP 1723 F ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI KUMAR PADMAPA N I BORA , DR / RESPONDENTBY : NONE / DATE OF HEARING : 1 6 .12.2019 / DATE OF PRONOUNCEMENT : 20 .12.2019 / O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - 13 IN SHORT REFERRED AS LD. CIT(A), MUMBAI, DATED 2 0 /0 7 /2018 FOR ASSESSMENT YEAR (IN SHORT AY) 20 10 - 11 , WHEREBY THE LD. CIT(A) ALLOWED THE APPEAL FILED BY THE ASSESSEE AGAINST THE PENALTY ITA NO. 6131 /MUM/2018 A.Y 20 10 - 11 M/S. PRINTED CARDZ P.LTD . - 2 - ORDER PASSED U/S 271 (1) (C) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) BY DELETING THE SAME . 2. BRIEF FACTS OF THE CASE ARE THAT THAT ASSESSEE FILED ITS RETURN OF INCOME ON 15 - 10 - 2010 FOR THE A.Y 2010 - 11 , DECLARING TOTAL INCOME OF RS. 76,35,090 / - WHICH WAS PROCESSED/ ACCEPTED U/S 143(1) OF THE ACT. SUBSEQUENTLY INFORMATION RECEIVED FROM SALES TAX DE PARTMENT AND DGIT (INVESTIGATION ), MUMBAI INFORMING THAT ASSESSEE HAS MADE PURCHASES FROM HAWALA ENTRY PROVIDERS. ACCORDINGLY , THE ASSESSMENT WAS REOPENED , THE REASSESSMENT WAS COMPLETED VIDE ORDER DATED 2 6.12.2016 BY DETERMINING THE TOTAL INCOME AT RS. 8 2,38,500/ - . IN THE ABOVE ASSESSMENT A.O ESTIMATED THE PROFIT @ 1 2.5 % ON SUCH TRANSACTION MADE BY THE ASSESSEE AND MADE ADDITION OF RS. 6,03,408/ - ON ACCOUNT OF BOGUS PURCHASE TRANSACTION . THEREAFTER, THE A.O ALSO INITIATED PENALTY PROCEEDINGS U/S 271(C) OF THE ACT BY ISSU ING OF NOTICE U/S 274 R.W.S 271( 1) ( (C ) OF THE ACT AND LEVIED PENALTY OF RS. 1,86,453/ - FOR FURNISHING INACCURATE PARTICULARS OF INCOME U/S. 271(1) ( C) OF THE ACT VIDE ORDER DATED 31.08.2016 . 3. AGGRIEVED WITH THE ORDER OF THE A.O TH E ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). ITA NO. 6131 /MUM/2018 A.Y 20 10 - 11 M/S. PRINTED CARDZ P.LTD . - 3 - 4. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND BY RELYING ON THE DECISION S OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF ITO VS. ETCO TELECOM LTD., IN ITA NO. 5243, 5998 & 5999/MUM/2012 AND IN THE CASE OF ACIT VS. M/S BALAJI CONSTRUCTIONS IN ITA NO. 217/MUM/2015 AND ITA NOS. 5531, 5532/MUM/2018 IN THE CASE OF ITO VS. SMT. SEEMAN R. SINGH, ORDER DT. 10 - 12 - 2019 LD. CIT(A) HAS DELETED THE IMPUGNED PENALTY LEVIED BY THE A.O. AGGRIEVED WITH THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 5. AT THE TIME OF HEARING, IT IS BROUGHT TO OUR NOTICE THAT THE PENALTY WAS LEVIED ON THE ALLEGE D BOGUS PURCHASES AND THE INCOME WAS ESTIMATED , THE SAME WAS ALSO CONFIRMED BY THE LD. DR. THEREFORE, IN OU R CONSIDERED VIEW AND IN THE CATENA OF CASES THE COURTS HAVE HELD THAT THE PENALTY CANNOT BE LEVIED WHEN THE INCOME OF THE ASSESSEE IS ESTIMATED. THEREFORE, THE PENALTY DELETED BY THE CIT(A) IS JUSTIFIED AND PROPER. ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 6131 /MUM/2018 A.Y 20 10 - 11 M/S. PRINTED CARDZ P.LTD . - 4 - 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 20 /12 /201 9 . SD/ - SD/ - ( SAKTIJIT DEY ) ( S RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 20 /12 /20 1 9 **PP,S PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// 1. / ( ASST. REGISTRAR) , / ITAT, MUMBAI 6. E