MULTICONSULT PVT. LTD., MUMBAI V. ITO-8(2)(3), MUMBAI

ITA 6537/MUM/2013

• Counselvise Citation: 653719914 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-10-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 07-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SANTOSH MANKUSKAR

Judgement Text

1 , INCOME TAX APPELLATE TRIBUNAL,MUMBAI - B,BENCH , , BEFORE S/SH. RAJENDRA,ACCOU NTANT MEMBER & SHAKTIJIT DEY,JUDICIAL MEMBER /. ITA NO. 6537 /MUM/20 13 , / ASSESSMENT YEAR - 200 7 - 08 M/S. MULTICONSULT PVT. LTD. 303/304, INDRADARSHAN BLDG.NO.18 NEXT TO TARAPORE GARDEN ANDHERI(W) MUMBAI - 400 053. VS INCOME TAX OFFICER - 8( 2) - 3 MUMBAI. ( / APPELLANT ) ( / RESPONDENT ) /ASSESSEE BY : MS. NEHA PARANJPE / REVENUE BY : DR. SANTOSH MANKUSKAR / DATE OF HEARING : 01 - 10 - 2015 / DATE OF PRONOUNCEMENT : 01 - 10 - 2015 , 1961 254 ( 1 ) ORDER U/S.254(1)OF THE INCOME - TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DATED 11.09.2013 OF CIT(A) - 17,MUMBAI,THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1.THE LD. CIT(A) ERRED IN CONFRMING THE LEVY OF PENALTY U/S.271(1)(C) OF RS.2,84,070/ - YOUR APPELLANTS CRAVE LEAVE TO ADD, TO ALTER OR TO AMEND ANY OR ALL OF THE ABOVE GROUNDS OF APPEAL. BRIEF FACTS: 2. THE EFFECTIVE GROUND OF APPEAL IS ABOUT DELETION OF PENALTY IMPOSED U/S.271( 1)(C)OF THE ACT. THE ASSESSEE HAD FILED ITS RETURN OF INCOME ON 27.03.2008,DECLARING INCOME OF RS.4.31 LAKHS.THE ASSESSING OFFICER(AO)COMPLETED THE ASSESSMENT ON 24.12.2009,U/S.143(3)OF THE ACT, ENHANCING THE INCOME OF THE ASSESSEE BY RS.17.60 LAKHS. 3. D URING THE ASSESSMENT PROCEEDINGS THE AO FOUND THAT THE ASSESSEE HAD CHANGED ITS METHOD OF ACCOUNTING.HE HELD THAT THE CHANGE WAS NOT BONAFIDE AND WAS A COLOURABLE DEVICE TO EVADE TAX AND SUPPRESSION OF INCOME OF RS.10.95 LAKHS.HE ADDED THE SAID AMOUNT TO T HE INCOME OF THE ASSESSEE AND INITIATED PENALTY PROCEEDINGS AGAINST THE U/S.271(1)(C) OF THE ACT.IN THE APPELLATE PROCEEDINGS,THE FIRST APPELLATE AUTHORITY(FAA)UPHELD THE ORDER OF THE AO. AFTER THE ORDER OF THE FAA,THE AO GAVE AN OPPORTUNITY TO THE ASSESSE E TO EXPLAIN AS TO WHY THE PENALTY SHOULD NOT BE LEVIED.AS PER THE AO,THE ASSESSEE DID NOT FILE ANY EXPLANATION IN THAT REGARD .THERFORE,HE IMPOSED A PENALTY OF RS.2.84 LAKHS FOR FURNISHING INACCURATE PARTICULARS OF INCOME.THE ASSESSEE AGITATED THE MATTER B EFORE THE FAA,BUT HE DISMISSED THE APPEAL FILED BY THE ASSESSEE AND CONFIRMED THE PENALTY ORDER. IN THE MEANWHILE, THE ASSESSEE CHALLENGED THE ORDER OF THE FAA BEF ORE THE TRIBUNAL.VIDE ITS ORDER,DATED 21. 5.2014(ITA/3517/MUM/2011) , TH E APPEAL FILED BY THE ASS ESSEE WAS ALLOWED AND THE ORDER OF THE FAA WAS REVERSED BY THE TRIBUNAL. 4. BEFORE US,THE AUTHORISED REPRESENTATIVE(AR)ARGUED THAT THE TRIBUNAL HAD DELETED THE ADDITION MADE BY THE AO AND CONFIRMED BY THE FAA.DEPARTMENTAL REPRESENTATIVE(DR)LEFT THE ISSUE TO 6537/13MULTICONSULT - A.Y.07 - 08 2 THE DISCRETION OF THE BENCH.WE FIND THAT THE QUANTUM ADDITION,WHICH WAS THE BASIS FOR IMPOSING CONCEALMENT PENALTY,HAS BEEN DELETED BY THE TRIBUNAL.THEREFORE,THE ORDER OF THE FAA CONFIRM - ING THE PENALTY IMPOSED BY THE AO,AMOUNTING TO RS.2.84 LAKHS WOUL D NOT SURVIVE.REVERSING THE HIS ORDER,WE DECIDE EFFECTIVE GROUND OF APPEAL IN FAVOUR OF THE ASSESSEE. AS A RESULT,APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST OCTOBER ,2015. 0 1 . 2015 SD/ - SD/ - ( / SHAKTIJIT DEY) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / MUMBAI, /DATE: 01 . 1 0.2015 . . . JV. SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR B BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , / ITAT, MUMBAI.