KISHORKUMAR MOHANLAL VYAS, MUMBAI V. INCOME TAX OFFICER-29(2)(1), MUMBAI

ITA 6377/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1794 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 30-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Bogus purchase; Set aside
• Section: 143(3)

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA ( A M) & SHRI AMARJIT SINGH (JM) I.T.A. NO. 6377 /MUM/ 2017 (ASSESSMENT YEAR 20 09 - 10 ) I.T.A. NO. 6378/MUM/2017 (ASSESSMENT YEAR 2010 - 11) I.T.A. NO. 6379/MUM/2017 (ASSESSMENT Y EAR 2009 - 10) I.T.A. NO. 6380/MUM/2017 (ASSESSMENT YEAR 2010 - 11) SHRI KISHORKUMAR MOHANLAL VYAS 1/13 FLY MY SADAN GAONDEVI ROAD BHANDUP (WEST) MUMBAI - 400 078. PAN : AAAPV8029L V S . ITO - 29(2)(1) ROOM NO. 201 2 ND FLOOR C - 10, BKC BANDRA EAST MUMBAI - 400 051 . ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI C.V. JAIN DEPARTMENT BY S H R I M.K. SINGH DATE OF HEARING 27.3 . 201 9 DATE OF PRONOUNCEMENT 11 . 6 . 201 9 O R D E R PER SHAMIM YAHYA (AM) : THESE ARE FOUR APPEALS BY THE ASSESSEE AGAINST LEVY OF PENALTY U/S. 271(1)(B) OF THE I.T. ACT OF RS. 10,000/ - EACH FOR TWO DEFAULTS EACH FOR A.Y. 2009 - 10 & 2010 - 11. 2. BRIEF FACTS OF THE CASE ARE THAT IN INCOME TAX APPEAL IN THIS REGARD ADDITIONS WERE MADE ON ACCOUNT OF BOGUS PURCHASES. AFTER RECEIVING EXP LANATION FROM THE ASSESSEE THE ASSESSING OFFICER HAS GRANTED RELIEF TO THE ASSESSEE IN AS MUCH AS HE HAS DISALLOWED ONLY 12.5% OF THE BOGUS PURCHASES. ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT. SUBSEQUENTLY, THERE WAS CHANGE OF INCUMBENT. THE ASSESSI NG OFFICER AGAIN ISSUED NOTICES. THESE WERE REPORTEDLY NOT COMPLIED, HENCE PENALTY U/S. 271(1)(B) OF THE ACT OF RS. 10,000/ - EACH WAS LEVIED. SHRI KISHORKUMAR MOHANLAL VYAS 2 ASSESSEES EXPLANATION IN THIS REGARD IS THAT THE ASSESSEE HAS GIVEN ALL NECESSARY INFORMATION AND EXPLANATION FO R THE ASSESSMENT IN THIS REGARD. WE NOTE THAT AFTER RECEIPT OF NECESSARY INFORMATION AND EXPLANATION, ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT. ADDITION ON ACCOUNT OF BOGUS PURCHASES WAS REDUCED BY THE ASSESSING OFFICER AFTER CONSIDERING ASSESSEES EXPLANATION AND INFORMATION TO 12.5%. THE ASSESSING OFFICER NOTED THAT THERE WAS CHANGE OF INCUMBENT AND NEW INCUMBENT HAS AGAIN ISSUED NOTICES WHICH HAVE NOT BEEN COMPLIED WITH. IN OUR CONSIDERED OPINION WHEN THE ASSESSEE HAS SUBMITTED ALL NECESSARY INFOR MATION AND EXPLANATION, JUST BECAUSE THERE IS CHANGE IN INCUMBENT , ASSESSEE CANNOT BE ASKED TO FURNISH THE SAME INFORMATION AGAIN, AND IN AB SENCE THEREOF PENALTY CANNOT BE LEVIED. HENCE, IN OUR CONSIDERED OPINION ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ASSESSEE HAS PROVIDED ALL NECESSARY INFORMATION AND EXPLANATION AND THE PENALTY LEVIED U/S. 271(1)(B) IS TOTALLY UNCALLED FOR AND UNSUSTAINABLE. HENCE, IN THE BACKGROUND OF THE AFORESAID DISCUSSION, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE PENALTY. 3. IN THE RESULT, APPEALS FILED BY THE ASSESSEE STAND ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 11 . 6 . 201 9 . SD/ - SD/ - (AMARJIT SINGH) (SH A MIM YAHYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 11 / 6 / 20 1 9 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI SHRI KISHORKUMAR MOHANLAL VYAS 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI