ITO-12(1)(2), MUMBAI, MUMBAI V. M/s. ARCRAFT PLASMA EQUIPMENTS INDIA PVT. LTD., MUMBAI

ITA 6341/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2424 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 04-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Keywords: Bogus purchase
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH MUMBAI BEFORE : SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI M.BALAGANESH, A CCOUNTANT M EMBER ITA NO. 6341/ MUM/ 20 19 ( ASSESSMENT YEAR : 20 09 - 10 ) INCOME TAX OFFICER 12(1)(2) MUMBAI ROOM NO.2 25, 2 ND FLOOR AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 VS. M/S. ARCRAFT PLASMA EQUIPMENTS INDIA PVT. LTD., 124, DIAMOND INDUSTRIAL ESTATE KETKI PADA ROAD DAHISAR (E) MUMBAI 400 068 PAN/GIR NO. AADCA0505A (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI BR AJENDRA KUMAR ASSESSEE BY MS. NEHA PARANJPE DATE OF HEARING 21 / 06 /202 1 DATE OF PRONOUNCEMENT 22 / 06 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 6341/MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE L D. COMMISSIONER OF INCOME TAX (APPEALS) - 20, MUMBAI IN APPEAL NO. CIT(A) - 20/IT - 10019/2018 - 19 DATED 27/06/2019 (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 PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED ITA NO . 6341/MUM/2019 M/S. ARCR AFT PLASMA EQUIPMENTS INDIA PVT. LTD 2 U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF B OGUS PURCHASES WAS DELETED BY THE LD. CIT(A) ON THE PRIMARY GROUND 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 BY THE CBDT IN ITS CIRCULAR 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 CASES FALL WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCORD INGLY HE ARGUED THAT 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 HO LD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 22 / 06 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( MAHAVIR SINGH ) SD/ - (M.BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI ; DATED 22 / 06 / 2021 ITA NO . 6341/MUM/2019 M/S. ARCR AFT PLASMA EQUIPMENTS INDIA PVT. LTD 3 KARUNA , SR.PS 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//