ACIT 26 (1), MUMBAI V. COTTON NATION, MUMBAI

ITA 6368/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1923 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 04-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI MAHAVIR SINGH (VICE PRESIDENT) AND SHRI M. BALAGANESH (ACCOUNTANT MEMBER) ITA NO. 6368 /MUM/2019 ASSESSMENT YEAR: 201 4 - 1 5 ACIT - 26(1), ROOM NO. 302, 3 RD FLOOR, KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400051. VS. M/S COTTON NATION, 304, 3 RD FLOOR, VTM BUILDING, MEHRA COMPOUND SAKI NAKA MUMBAI - 400072. PAN NO. AAHFC 2784 N APPELLANT RESPONDENT REVENUE BY : MS. SHREEKALA PARDESHI, DR ASSESSEE BY : NONE DATE OF HEARING : 24/06/2021 DATE OF PRONOUNCEMENT : 01 / 07 /2021 ORDER PER M. BALAGANESH , A.M. THE APPEAL OF THE ASSESSEE ARISE S OUT OF THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3 8 , MUMBAI [HEREINAFTER REFERRED TO AS LD. CIT(A) ] DATED 28.01.2019 FO R ASSESSMENT YEAR 2014 - 15 AGAINST THE ORDER OF ASSESSMENT FRAMED BY THE LD. ASSISTANT COMMISSIONER OF INCOME TAX - 26(1), MUMBAI (HEREINAFTER REFERRED TO AS AO) ON 19.12.2016 FOR ASSESSME NT YEAR 2014 - 15 U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). M/S COTTOAN NATION ITA NO. 6368/M/2019 2 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 ACCOUN T 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 GROUND THAT NO PENALTY WOULD SURVIVE ON AN ESTIMATED ADDITION. AGGRIEVED, THE REVENUE IS IN AP PEAL 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 VEHEM ENTLY ARGUED THAT THE SAID CASE FALL S WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCORDINGLY HE ARGUED THAT THE APPEAL IS MAINTAINABLE. WE FIND THAT THE EXCEPTION PROVIDED IN PARA 10(E) OF TH E 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 THESE APPEALS OF THE REVENUE BY FOLLOWING THE AFORESAID CIRCULAR NO.17/2019 DATED 08/0 8/2019 AND HOLD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 01/07/2021 SD/ - SD/ - ( MAHAVIR SINGH ) ( M. BALAGANESH ) VICE PRESIDENT ACCO UNTANT MEMBER MUMBAI ; DATED: 01/07/2021 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : M/S COTTOAN NATION ITA NO. 6368/M/2019 3 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSISTANT REGISTRAR) ITAT, MUMBAI