DCIT CEN CIR 11, MUMBAI V. SHREE MEENAKSHI FOOD PRODUCTS P.LTD, MUMBAI

ITA 6620/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0406 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 05-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 31-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK LD
• Assessee Lawyers: NEELKANTH KHANDELWAL LD
• Section: 43B; 143(3)

Judgement Text

ITA NO.6620/MUM/2014 SHREE MEENAKSHI FOOD PRODUCTS PRIVATE LIMITED ASSESSMENT YEAR 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . , , BEFORE SHRI C.N. PRASAD, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.6620/MUM/2014 ( / ASSESSMENT YEAR:2011-12) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 11 8 TH FLOOR, ROOM NO. 805 OLD CGO BUILDING(ANNEX) M.K.ROAD MUMBAI-400 020 / VS. SHREE MEENAKSHI FOOD PRODUCTS PRIVATE LIMITED 5 TH FLOOR, JMJ HOUSE, ORCHARD AVENUE, HIRANANDANI ESTATE, POWAI MUMBAI 400 076 ! ./ ./ PAN/GIR NO.AAACM-7440-F ( !# /APPELLANT ) : ( $!# / RESPONDENT ) REVENUE BY : DR. A.K. NAYAK, LD. DR ASSESSEE BY : NEELKANTH KHANDELWAL, LD. AR / DATE OF HEARING : 08/06/2017 / DATE OF PRONOUNCEMENT : 08/06/2017 2 ITA NO.6620/MUM/2014 SHREE MEENAKSHI FOOD PRODUCTS PRIVATE LIMITED ASSESSMENT YEAR 2011-12 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY REVENUE FOR ASSESSMENT Y EAR [AY] 2011-12 ASSAILS THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-37 [CIT(A)], MUMBAI DATED 26/08/2014 QUA DELETION OF PENALTY U/S 271(1)(C) FOR RS.12,39,160/- LEVIED ON ACCOUNT OF DISALLOWANCE U/ S 43B. 2. BRIEFLY STATED, THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE, SUFFERED DISALLOWANCE OF RS.40,10,255/- U/S 43B FOR LATE PAYMENT OF PF & ESIC IN AN ASSESSMENT U/S 143(3) AGAINST WHICH IMPU GNED PENALTY WAS INITIATED. AS EMANATING FROM THE PENALTY ORDER, NO APPEAL WAS PREFERRED BY THE ASSESSEE APPARENTLY IN VIEW OF THE FACT THAT IT HAD INCURRED HUGE LOSSES AND THE SAID DISALLOWANCE DID NOT ENTAIL IMMEDIATE TAX OUTFLOW. HOWEVER, THE ASSESSEE POINTED OUT THAT SINCE THE SAID DUES W ERE DEPOSITED BEFORE DUE DATE OF FILING OF RETURN OF INCOME, THEY WERE A LLOWABLE TO THE ASSESSEE AS PER VARIOUS JUDICIAL PRONOUNCEMENTS AND THEREFOR E, PENALTY WAS NOT JUSTIFIED. BUT, NOT CONVINCED, LD. AO IMPOSED IMPUG NED PENALTY OF RS.12,39,160/- VIDE ORDER DATED 30/12/2013 AND THE SAME WAS CONTESTED BEFORE FIRST APPELLATE AUTHORITY. 3. THE LD. CIT(A) OBSERVED RATIO OF VARIOUS JUDICIA L PRONOUNCEMENTS SUPPORTING ASSESSEES VIEW AND NOTICED THAT THE CL AIM PER SE WAS A VALID LEGAL CLAIM AND NOT A BOGUS ONE. THEREAFTER, LD. CIT(A) DELETED THE SAME 3 ITA NO.6620/MUM/2014 SHREE MEENAKSHI FOOD PRODUCTS PRIVATE LIMITED ASSESSMENT YEAR 2011-12 BY PLACING RELIANCE ON THE JUDGMENT OF APEX COURT I N RELIANCE PETRO PRODUCTS LTD. [322 ITR 158] ON THE PREMISES THAT INCORRECT CLAIM IN LAW DO NOT TANTAMOUNT TO FURNISHING OF INACCURATE PARTICUL ARS. 4. THE LD. DR JUSTIFIED THE PENALTY BUT FAIRLY CONC EDED THAT THE ISSUE OF QUANTUM ADDITION STOOD IN ASSESSEES FAVOR BY THE J UDGMENT OF HONBLE BOMBAY HIGH COURT RENDERED IN CIT VS. GHATGE PATIL TRANSPORTS LTD. [2015 53 TAXMANN.COM 141]. THE LD. AR PLACED RELIANCE ON THE CONCLUSION REACHED AT BY LD. CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND FIND OUR SELVES IN AGREEMENT WITH THE VIEW TAKEN BY LD. CIT(A) SINCE THE QUANTUM ADDITION STOOD DECIDED IN ASSESSEES FAVOR BY THE JUDGMENT OF JURISDICTION AL HIGH COURT IN THE CITED JUDGMENT. EVEN OTHERWISE, THE PENALTY COULD NOT BE LEVIED IN VIEW OF THE RATIO LAID DOWN BY APEX COURT IN RELIANCE PETRO PRODUCTS LTD [SUPRA]. 6. IN VIEW OF THE ABOVE, THE REVENUES APPEAL STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE, 2017. SD/- SD/- (C. N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 08.06.2017 SR.PS:- THIRUMALESH 4 ITA NO.6620/MUM/2014 SHREE MEENAKSHI FOOD PRODUCTS PRIVATE LIMITED ASSESSMENT YEAR 2011-12 / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $!# / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. &- , - , / DR, ITAT, MUMBAI 6. ./ / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI