JAYBHARAT TEXTILES & REAL ESTATE LTD, MUMBAI V. DCIT CC 5(3), MUMBAI

ITA 6303/MUM/2018

AI Insights

Jaybharat Textiles & Real Estate Ltd. appealed against the penalty order under section 271(1)(c) of the Income Tax Act, 1961, which was initially levied by the Assessing Officer and later confirmed by the Commissioner of Income Tax (Appeals). The penalty was imposed following an assessment that reduced the declared loss of the assessee from Rs.29,61,68,590 to Rs.20,44,54,272. The Tribunal noted that the company is currently undergoing insolvency proceedings, which influenced their decision to dismiss the appeal with a provision to restore it post-moratorium.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299265 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 10-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 01-11-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 271(1)(c); 144; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI PRAKASH MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM I TA N o. 630 3/ M u m / 20 18 ( A s s e ss me nt Y ea r: 20 1 2- 13 ) Jaybharat Textiles & Real Estate Ltd. 11/12, Krishna House, Raghuvanshi Mill Copound, Senapati Bapat Marg, Lower Parel, Mumbai-400 013 V s. DCIT, Central Circle-5(3) Mumbai P A N / G I R N o. (Appellant) : (Respondent) Assessee by : None Revenue by : Shri Yashwant Kumar Bhaskar D a te o f H e a r i n g : 11.01.2023 D ate of P ro n o u n c e me n t : 24.01.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals)-53, Mumbai passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2012-13. 2. Primarily, the assessee has challenged the penalty order u/s. 271(1)(c) of the Act dated 29.03.2018 passed by the Assessing Officer (A.O. for short) and confirmed by the ld. CIT(A). 3. As there was no representation on behalf of the assessee, we proceed to hear and decide the appeal by hearing the ld. Departmental Representative (DR for short) and on perusal of the material available on record. 2 ITA No. 6 3 0 3 / M u m / 2 0 1 8 ( A . Y . 2 0 1 2 - 1 3 ) Jaybharat Textiles & Real Estate Ltd. vs. DCIT 4. The brief facts are that the assessee company is engaged in the business of manufacturing circular knitted hosiery, cloth, yarn and T.F.O. yarn. The assessee filed its return of income declaring total loss of Rs.29,61,68,590/- dated 27.09.2012. The assessee’s case was selected for scrutiny and the assessment order u/s. 144 of the Act was passed dated 31.03.2015, where the A.O. determined the total loss of the assessee at Rs.20,44,54,272/- by way of making various additions/disallowances. The penalty proceeding u/s. 271(1)(c) of the Act was initiated and the penalty amounting to Rs.3,46,82,710/- was levied. 5. Aggrieved by this, the assessee was in appeal before the ld. CIT(A), challenging the penalty order dated 29.03.2018. The ld. CIT(A) upheld the penalty levied by the A.O. 6. The assessee is in appeal before us, challenging the order of the ld. CIT(A). 7. Having heard the ld. DR for the Revenue and perused the material available on record, it is observed that the assessee company is undergoing insolvency proceedings before the Hon’ble National Company Law Tribunal (NCLT for short) which is said to have appointed Interim Resolution Professional. The ld. DR had nothing to controvert the same. 8. From the above observation, we are of the considered view that as per the provisions of section 14 of Insolvency and Bankruptcy Code, 2016, the assessee company is undergoing insolvency proceedings. We are, therefore, inclined to dismiss this appeal with the liberty given to the assessee to restore the same after completion of the moratorium period. 3 ITA No. 6 3 0 3 / M u m / 2 0 1 8 ( A . Y . 2 0 1 2 - 1 3 ) Jaybharat Textiles & Real Estate Ltd. vs. DCIT 9. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 24.01.2023 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 24.01.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai