GARDEN VIEW REALTORS P. LTD, MUMBAI V. ITO 3(1)(4), MUMBAI

ITA 6426/MUM/2010

• Counselvise Citation: 642619914 RSA 2010
• Duration Of Justice: 3 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 19-09-2013
• Assessment Year: 2000-2001
• Appeal Filed On: 31-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C P PATHAK
• Assessee Lawyers: NARAYAN ATAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 6426/MUM/2010 ASSESSMENT YEAR: 2000-01 M/S. GARDEN VIEW REALTORS P. LTD. 161-C, MITTAL TOWERS, NARIMAN POINT, MUMBAI 400 021 PAN: AAACG 1917 F VS. ITO 3(1)(4) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NARAYAN ATAL RESPONDENT BY : SHRI C. P. PATHAK DATE OF HEARING : 19.09.2013 DATE OF PRONOUNCEMENT : 30.09.2013 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD.CIT(A) -7, MUMBAI DATED 24.03.2010 CONFIRMING TH E PENALTY OF RS.3,06,075/- LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX AC T. 2. BRIEFLY STATED, THE ASSESSEE, A COMPANY ENGAGED IN THE BUSINESS OF TRADING AND INVESTMENT, DURING THE YEAR UNDER CONSIDERATION , IN THE P & L ACCOUNT HAD DEBITED A LOSS ON ACCOUNT OF TRADING IN SHARES AMOU NTING TO RS.7.95 LAKHS. ACCORDING TO THE ASSESSEE, IT SUPPOSEDLY SOLD 21,000 SHARES O F M/S. SVA INDIA LTD. FOR RS.2.10 LAKHS AND THESE SHARES HAD BEEN CONVERTED INTO STOC K-IN-TRADE FROM INVESTMENT AT THE COST OF RS.8.4 LAKHS AND THEREBY CLAIMED THE SA ID LOSS. HOWEVER, IN THE ASSESSMENT FRAMED U/S 143(3), THE AO DISALLOWED THE LOSS AS THE ASSESSEE HAD TRIED TO DEFRAUD THE REVENUE BY CREATING BOGUS SALE OF SH ARES AND BOOKING LOSSES ITA NO. 6426/MUM/2010 M/S. GARDEN VIEW REALTORS P. LTD. ASSESSMENT YEAR: 2000-01 2 THEREFROM. CONSEQUENTLY, IN THE PENALTY PROCEEDINGS , THE AO LEVIED A PENALTY OF RS.3,06,075/- AND THE SAME HAD BEEN CONFIRMED BY TH E LD.CIT(A). AGGRIEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS IN APPEAL BEFORE US . 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS NOTED THAT IN THE QUANTUM PROCEEDINGS, THE ITAT HAS CONFI RMED THE IMPUGNED ADDITIONS MADE/CONFIRMED BY THE REVENUE AUTHORITIES. IT IS PE RTINENT TO MENTION THAT DURING THE COURSE OF THE PROCEEDING, THE LD.AR OF THE ASSE SSEE HAS CONCEDED THAT THE ITAT IN THE ASSESSEES OWN CASE FOR THE AYS. 1999-00 AND 2000-01, WHILE DECIDING A SIMILAR ISSUE HAS HELD THAT THE PENALTY IMPOSED AS A RESULT OF DISALLOWANCE OF LOSS ON SHARE IS JUSTIFIED. SINCE THE LD.CIT(A) HAS CORRECT LY RELIED ON THE SAID DECISION OF THE ITAT FOR CONFIRMING THE IMPUGNED PENALTY IN THE SIM ILAR SET OF FACTS FOR THE YEAR UNDER CONSIDERATION AND IN THE ABSENCE OF ANY DISTI NGUISHING FACTS BROUGHT ON RECORD BY THE ASSESSEE, WE DO NOT FIND ANY JUSTIFIABLE REA SON TO INTERFERE WITH THE DECISION OF THE LD.CIT(A). ACCORDINGLY, THE ORDER OF THE LD. CIT(A) CONFIRMING THE IMPUGNED PENALTY LEVIED BY THE AO ON THIS COUNT IS UPHELD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF SEPTEMBER, 2013. SD/- SD/- (P.M. JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.09.2013. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR G BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.