DCIT, CIRCLE 12 (1)(1), MUMBAI V. ARVIVA INDUSTRIES (I) LTD., RAIGAD

ITA 6404/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1800 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Assessee Lawyers: MRAGAKSHI JOSHI
• Keywords: Bogus purchase
• Section: 143(3); 13

Judgement Text

A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI , . , BEFORE S H RI MAHAVIR SINGH, VP AND S H RI M. BALAGANESH, AM ./ ITA NO. 6404 /MUM/2019 ( / ASSESSMENT YEAR 2012 - 13 ) DY. COMMISSIONER OF INCOME TAX CIRCLE12(1)(1), ROOM NO.128C, 1 ST FLOOR, AAYAKAR BHAWAN, CHURCHGATE, MUMBAI - 400 020 / VS. M/S ARVIVA INDUSTRIES (I) LTD. T - 15, MIDC, TALOJA, RAIGAD - 410208 ( / APPELLANT) ( / RESPONDENT) . / PAN NO. AAACA5076H / APPELLANT BY : SHRI BRAJENDRA KUMAR, DR / RES PONDENT BY : MS MRAGAKSHI JOSHI, AR / DATE OF HEARING : 21 .06.2021 / DATE OF PRONOUNCEMENT : 24. 06.2021 / O R D E R . , / PER M. BALAGANESH , AM : THIS APPEAL OF REVENUE IS ARISING OUT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)] - 20 , MUMBAI [IN SHORT CIT(A)], DATED 26.06.2019 . THE ASSESSMENT WAS FRAMED BY THE DY. COMMISSIONER OF INCOME TAX , CIRCLE 9(1), MUMBAI (IN SHORT DCIT/ ITO / AO) FOR THE A.Y. 2012 - 13 VIDE ORDER DATED 11.11.2014 UNDER SECTION 143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER THE ACT). THE PENALTY WAS LEVIED BY DY. COMMISSIONER OF INCOME TAX, CIRCLE - 12(1)(1), MUMBAI VIDE ORDER DATED 29.05.2015. 2. WE HAVE HEARD RIVAL SUBMISSION S AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE PAGE | 2 ITA NO. 6404 /MUM/ 2019 M/S ARVIVA INDUSTRIES (I) LTD. ; AY 12 - 13 ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES WAS DELE TED 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 L IMIT 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 C IRCULAR AND ACCORDINGLY HE ARGUED THAT THE APPEALS ARE 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 PENAL TY 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 HOLD THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 . 0 6.2021. SD/ - SD/ - ( /MAHAVIR SINGH) ( . / M. BALAGANESH ) ( / VICE PRESIDENT) ( / ACCOUNTANT MEMBER) , / MUMBAI, DATED: 24 . 06.2021 , . / SUDIP SARKAR, SR.PS PAGE | 3 ITA NO. 6404 /MUM/ 2019 M/S ARVIVA INDUSTRIES (I) LTD. ; AY 12 - 13 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY . / SR. PRIVATE SECRETARY , / ITAT, MUMBAI