ROYALLINE RESOURCES LIMITED, MUMBAI V. ACIT-1(3)(1), MUMBAI

ITA 6574/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4239 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 10-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , AM AND SHRI AMARJIT SINGH, JM / I.T.A. NO. 6574 /MUM/2017 ( / ASSESSMENT YEARS: 20 13 - 1 4 ) ROYALLINE RESOURCES LTD. 415, PALM SPRING, ABOVE D MART, LIN K ROAD, MALAD WEST, MUMBAI - 400064 . / VS. ACIT - 1(3)(1) AAYAKAR BHAVAN, MUMBAI ./ ./ PAN/GIR NO. : AAACS8226M ( / APPELLANT ) .. ( / RESPONDENT ) / DAT E OF HEARING: 28 .01.2019 /DATE OF PRONOUNCEMENT: 13. 03 .2019 / O R D E R PER AMARJIT SINGH, JM: THE ASSESSE E HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 31 .0 7 .201 7 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 3, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y. 2013 - 14 WHERE IN THE PENALTY L EVIED BY THE AO HAS BEEN ORDER TO BE C ONFIRM . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: - 1 (A) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3. MUMBAI ERRED IN UPHOLDING THE ACTION OF THE ASST. COMMISSIONER OF INCOME TAX 1(3)(1), MUMBAI (HEREINAFTER REFERRED TO AS THE 'ASSESSIN G OFFICER' OR 'AU') IN MAKING ADDITION OR RS. 1,81, 924/ - ON ACCOUNT OF PENALTY ON DISALLOWANCE OF EXPENDITURE CLAIMED AS DONATION & INTEREST PAID ON LATE PAYMENT OF TDS. (B) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 28. MUMBAI ERRED IN UPHOLDING THE ACTION OF AO OF NOT ACCEPTING THE SUBMISSION OF THE APPELLANT THAT IN ORDER TO LEVY PENALTY U/S 271 (I) (C) OF THE ACT, THERE HAS TO BE CONCEALMENT OF INCOME OR THE APPELLANT MUST HAVE FURNISHED INACCURATE PARTICULARS OF ITS INCOME. DISALLOWANCE OF CERTAI N EXPENDITURE DOESN'T RESULT INTO IMPOSITION OF PENALTY. GROUND 2 ASSESSEE BY: SHRI ANCHAL CHOPRA REVENUE BY : SHR I DURGA DUTT (SR.AR) ITA NO. 6574 /M/2017 A. Y. 2 013 - 14 2 2) (A) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3. MUMBAI ERRED IN NOT CONSIDERING THE CASE LAWS CITED BY THE APPELLANT WHICH ARE IDENTICAL TO THE CASE OF THE APPELLANT AND OF SAME JURISDICTION & HIGHER FORA. THE APPELLANT THEREFORE PRAYS THAT THE PENALTY IMPOSED ON DISALLOWANCE OF EXPENDITURE CLAIMED AS DONATION & INTEREST PAID ON LATE PAYMENT OF TDS MAY PLEASE BE DELETED. THE APPELLANT CRAVES LIBERTY TO ADD, TO ALTER AND/OR AMEND T HE GROUNDS OF APPEAL AS AND WHEN GIVEN. ' 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 30.09.2013 DECLARING TOTAL INCOME TO THE TUNE OF RS.6,59,28,300/ - . THEREAFTER, THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT O N 26.03.2016 ASSESSING THE TOTAL INCOME TO THE TUNE OF RS.6,64,89,015/ - . AT THE TIME OF COMPLETION OF ASSESSMENT , IT WAS NOTICED THAT THE APPELLANT HAD CLAIMED EXPENSES ON INTEREST PAID ON TDS OF RS.5,56,217/ - AND DONATION OF RS.4500/ - . THE CLAIM OF THE AS S ESSEE WAS DISALLOWED. T HEREAFTER, THE PENALTY PROCEEDING U/S 271(1)(C) OF THE ACT WAS INITIATED AND THE AO LEVIED THE PENALTY IN SUM OF RS.1,81,924/ - WHICH WAS CONFIRMED BY THE CIT(A), THEREFORE, THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 4. WE HAVE HEARD THE ARGUMENT ADVANCED BY THE LD. REPRESENTATIVE OF THE PARTIES AND PERUSED THE RECORD. IN FACT, THE ASSESSEE CLAIMED THE INTEREST ON TDS OF RS. 5,56,217/ - AND DONATION OF RS.4500/ - WHICH WAS NOT ALLOWABLE IN ACCORDANCE WITH LAW. DISALLOWANCE OF C LAIM NOWHERE LEADS TO CONCEALMENT OF INCOME AND FURNISHING THE INACCURATE PARTICULARS OF INCOME. DISALLOWANCE OF CLAIM NOWHERE LEADS TO PENALTY IN VIEW OF THE LAW SETTLED IN CIT VS. RELIANCNE PETROPRODUCTS P. LTD. (322 ITR 158) (SC) , THEREFORE, TAKING INTO CONSIDERATION, ALL THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE DISALLOWANCE OF CLAIM NOWHERE ATTRACT THE PENALTY, THEREFORE, THE FINDING OF THE CIT(A) IS NOT JUSTIFIABLE, HENCE, IS HEREBY ORDER TO BE SET ASIDE AND ACCORDINGLY WE DELETE THE PE NALTY. ITA NO. 6574 /M/2017 A. Y. 2 013 - 14 3 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS HEREBY ORDERED TO BE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 03 .2019. SD/ - SD/ - ( SHAMIM YAHYA) (AMARJIT SINGH) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; DATED : 13 . 03 .2019 . VIJAY / 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// / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI