BHAGWATI STEEL CAST P.LTD ( FORMELRY BHATWATI STEEL CAST LTD), MUMBAI V. ASST CIT 9(1), MUMBAI

ITA 6738/MUM/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4242 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 28-05-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 05-11-2012
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA , A M & SHRI RAM LAL NEGI , J M ./ ITA NO. 6738 / MUM/20 1 2 ( / ASSESSMENT YEAR : 200 6 - 2007 ) BHAGWATI STEEL CAST PVT. LTD. (FORMERLY BHAGWATI STEEL CAST LTD.), 601 - A, KANAKIA SPACES, WESTERN EDGE - I, DATTAPARA ROAD, WESTERN EXPRESS HIGHWAY, BORIVALI(E), MUMBAI - 400066 VS. ACIT - 9(1), MUMBAI ./ ./ PAN/GIR NO. : A AA CB 8416 C ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : M R. HARIDAS BHAT /REVENUE BY : SHRI CHANDRA V IJAY / DATE OF HEARING : 1 7/12/2015 / DATE OF PRONOUNCEMENT : 10/02 /2016 / O R D E R PER R.C.SHARMA ( A .M.) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MUMBAI, DATED 27 - 8 - 2012 , FOR THE ASSESSMENT YEAR 200 6 - 07 , IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE I.T. ACT 2 . RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF MS INGOT AND MS TMT BARS. DURING THE COURSE OF SCRUTINY ASSESSMENT THE AO MADE ADDITION ON ACCOUNT OF PURCHASE S BASED ON THE STATEMENT MADE BY THIRD PARTY AMOUNTING TO RS.14.45 CRORES, WHICH WAS FINALLY REDUCED TO RS.59.57 LAKHS. THE ADDITION SO RETAINED WAS ADHOC ADDITION AND WERE NOT AS A RESULT OF ANY EVIDENCE OF FILING INACCURATE PARTICULARS OR CONCEALING THE INCOME. ITA NO. 6738/12 2 3. FROM THE RECORD WE FOUND THAT ASSESSEE HAS PRODUCED ALL THE EVIDENCE TO SUPPORT THE PURCHASES, EVEN THE ENQUIRIES MADE DURING THE ASSESSMENT PROCEEDINGS U/S.133(6) WERE PROPERLY CONFIRMED. THE BOOKS OF ACCOUNTS WERE DULY AUDITED AND PROPER RECO RDS WERE DULY MAINTAINED BY THE ASSESSEE. WE ALSO FOUND THAT THE PURCHASES WERE MATCHED BY CORRESPONDING SALES. THE FINAL ADDITION MADE ON ACCOUNT OF SUCH PURCHASES WERE NOT CONTESTED BY THE ASSESSEE TO BUY PEACE OF MIND AND TO AVOID FURTHER LITIGATION. AC CORDINGLY, THE PENALTY LEVIED WITH RESPECT TO THE ADHOC ADDITION SO RETAINED WAS NOT JUSTIFIED. LD. AR PLACED ON RECORD VARIOUS ORDERS OF THE TRIBUNAL, WHEREIN FOR SUCH ADHOC ADDITION/DISALLOWANCE OF PURCHASES, PENALTY SO LEVIED WAS DELETED BY THE TRIBUNAL IN THE CASES OF CHEMPURE, 40 SOT 164, S.H.A.M.K. DISTRIBUTORS PVT. LTD., ITA NO.2337/MUM/2010, ORDER DATED 31 - 5 - 2012 (33 CCH 002 MUM TRIB AND HARNISH B. SHAH, ITA NOS.1314 TO 1316/MUM/2008 (126 TTJ 283) . WE HAD ALSO GONE THROUGH ALL THESE DECISION RELIED ON BY LD. AR, WHICH ARE ON THE SAME FACTS. APPLYING THE PROPOSITION OF LAW LAID DOWN IN THESE CASES, WE DO NOT FIND ANY MERIT FOR THE PENALTY IMPOSED WITH RESPECT TO THE ADHOC ADDITIONS RETAINED ON ACCOUNT OF PURCHASE. 4 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10/02 /2016 SD/ - SD/ - ( RAM LAL NEGI ) (R.C.SHARMA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 10/02 /2016 . . /PKM , . / PS ITA NO. 6738/12 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESP ONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//