ITO 22 (1)(4), MUMBAI V. SHRI. JATIN KANJI MARU, MUMBAI

ITA 6478/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8766 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 11-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: USHA GAIKWADLD
• Keywords: Bogus purchase; Tax effect
• Section: 271(1)(c); 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUM AR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) 1 . ./ I.T.A. NO. 6478 / MUM/ 2019 ( / ASSESSMENT YEAR: 2011 - 12 ) ITO 2 2 (1)(4 ), 308, PIRAMAL CHAMBERS LAL BAUG, PAREL MUMBAI 400 012 / VS. SHRI JATIN KANJI MARU 14, THAKUR NIWA S, SHIVAJI NAGAR, VAKOLA, SANTACRUZ(EAST), MUMBAI - 400 055 ./ ./ PAN/GIR NO. A BVPM - 7869 - F ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : MS. USHA GAIKWAD , LD. SR. DR / DATE OF HEAR ING : 29/07 /2021 / DATE OF PRONOUNCEMENT : 29/07/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 20 11 - 12 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME - TAX ( APPEAL S ) - 34, MUMBAI [ CIT(A)] D ATED 09/07/2019 WHICH HAS DELETED THE PENALTY OF RS.1,70,020/ - U/S 271(1)(C) AS LEVIED BY LD. AO VIDE PENALTY ORDER DATED 27/07/2016. THOUGH NONE APPEARED FOR ASSESSEE, HOWEVER, THE MATERIAL 2 ON RECORD WAS SUFFICIENT ENOUGH FOR DISP OSAL OF THE APPEAL. THE LD. DR PLEADED FOR RESTORATION OF THE PENALTY. 2. THE ASSESSEE WAS ASSESSED U/S 143(3) R.W.S. 147 ON 27/01/2016 WHEREIN IT WAS SADDLED WITH ESTIMATED ADDITION OF 30% ON ALLEGED BOGUS PURCHASES OF RS.19.56 LACS. THE SAME WAS ACCEPTED BY THE ASSESSEE. CONSEQUENTLY, IMPUGNED PENALTY OF RS.170,020/ - WAS LEVIED BY LD. AO VIDE ORDER DATED 27/07/2016. UPON FURTHER APPEAL CHALLENGING LEVY OF PENALTY, LD. CIT(A) DELETED THE SAME, INTER - ALIA, BY OBSERVING THAT THE ASSESSEE HAD FILED ALL THE NE CESSARY EVIDENCES TO SUBSTANTIATE THE CLAIM AND IT WAS NOT A CASE WHERE RELEVANT DETAILS WERE NOT ON RECORD. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 3. IN OUR CONSIDERED OPINION, THE IMPUGNED ORDER WOULD NOT REQUIRE ANY INTERFERENCE ON OUR P ART FOR TWO REASONS. FIRSTLY, THE ADDITIONS WERE MERELY ESTIMATED ADDITIONS FOR UNPROVED PURCHASES AND THEREFORE, NO CASE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME COULD BE MADE OUT AGAINST THE ASSESSEE. SECONDLY, THE REVEN UES APPEAL IS NOT MAINTAINABLE IN TERMS OF LATEST LOW TAX EFFECT CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019 [F.NO.279/MISC. 142/2007 - TTJ(PT.) WHICH PRESCRIBES MINIMUM THRESHOLD LIMIT OF RS.50 LACS FOR REVENUE TO AGITATE THE MATTER FURTHER BEFORE TRIBUNAL. IT IS SETTLED LEGAL POSITION THAT QUANTUM PROCEEDINGS AND PENALTY PROCEEDINGS ARE INDEPENDENT AND DISTINCT PROCEEDINGS AND CONFIRMATION OF ADDITIONS MAY NOT BE THE SOLE GROUND FOR CONFIRMING THE PENALTY . EXTENDING THE SAME LOGIC, UNLESS SPECIFIC EXCEPTION IS PROVIDED IN THE CIRCULAR WITH RESPECT TO PENALTY ALSO, IT COULD NOT BE CONSTRUED THAT THE PENALTY WAS TO BE TREATED AT PAR WITH QUANTUM ADDITIONS. THE CLAUSE 10(E) SPECIFICALLY APPLIES ONLY TO ADDITIONS WHICH ARE BASED ON INFORMATION RECEIVED FROM EXTE RNAL 3 SOURCES. THE LEVY OF PENALTY, BY NO STRETCH OF IMAGINATION, COULD BE CONSTRUED AS ADDITION AS ENVISAGED BY CLAUSE 10(E). THEREFORE, THE SUBMISSIONS MADE BY LD. DR COULD NOT BE HONORED AND WE DECLINE TO ACCEPT THE SAME. 4. RESULTANTLY, THE APPEAL STAND DISMISSED. ORDER PRONOUNCED ON 29 TH JULY, 2021. SD/ - SD/ - (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 29/07/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPO NDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.