ASST CIT CIR 6 (1)(1), MUMBAI V. M/S AMITY INTERLINK STEEL PVT LINK, MUMBAI

ITA 6943/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5454 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 11-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Assessee Lawyers: NILESH DEDHIA
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A VIRTUAL BENCH , MUMBAI BEFORE SHRI C.N. PRASAD, JM & SHRI M.BALAGANESH, AM ITA NO. 6943 /MUM/ 2019 ( ASSESSMENT YEAR : 2005 - 06 ) ITA NO. 6944 /MUM/ 2019 ( ASSESSMENT YEAR : 2006 - 07 ) ITA NO. 6945 /MUM/ 2019 ( ASSESSMENT YEAR : 2007 - 08 ) ITA NO. 6946 /MUM/ 2019 ( ASSESSMENT YEAR : 2008 - 09 ) ITA NO. 6947 /MUM/ 2019 ( ASSESSMENT YEAR : 2009 - 10 ) & ITA NO. 6975 /MUM/ 2019 ( ASSESSMENT YEAR : 2004 - 05 ) ASST. CIT CIR 6(1)(1) R.NO.522, 5 TH FLOOR AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 VS. M/S. AMITY INTERLINK STEEL PVT. LTD., 3 RD LLOYD HOUSE BARODA STREET CARNAC BUNDER MUMBAI 400 009 PAN/GIR NO. AABCA1796K (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI BRAJENDRA KUMAR ASSESSEE BY SHRI NILESH DEDHIA DATE OF HEARING 11 / 05 /202 1 DATE OF PRONOUNCEMENT 11 / 05 /202 1 ITA NO . 6943 /MUM/ 2019 & OTHER APPEALS M/S. ALMIGHTY INTERLINK STEEL PVT. LTD., 2 / O R D E R PER BENCH : TH ESE APPEAL S IN ITA NO. 6943/MUM/2019 , 6944/MUM/2019 , 6945/MUM/2019, 6946/MUM/2019, 6947/MUM/2019 & 6975/MUM/2019 FOR A.Y. 2005 - 06, 2006 - 07 ,2007 - 08, 2008 - 09, 2009 - 10 & 2004 - 05 RESPECTIVELY ARISE OUT OF THE ORDER BY THE LD. COM MISSIONER OF INCOME TAX (APPEALS) - 12 , MUMBAI IN APPEAL NO S . CIT(A) - 12/DCIT6(1)(1)/10109/18 - 19, CIT(A) - 12/DCIT - 6(1)(1)/10110/18 - 19 , CIT(A) - 12/DCIT - 6(1)(1)/10111/18 - 19, CIT(A) - 12/DCIT - 6(1)(1)/10112/18 - 19, CIT(A) - 12/DCIT - 6(1)(1)/10114/18 - 19 & CIT(A) - 12/DCIT - 6 (1)(1)/10108/18 - 19 RESPECTIVELY DATED 03/07/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILAB LE ON RECORD. WE FIND THAT THE LD. AO HAD LEVIED PENALTY ON THE ESTIMATED ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES. THIS PENALTY LEVIED U/S.271(1)(C) OF THE ACT ON AN ADDITION MADE ON ACCOUNT OF BOGUS PURCHASES WAS DELETED BY THE LD. CIT(A) ON THE PRIMA RY GROUND THAT NO PENALTY WOULD SURVIVE ON AN ESTIMATED ADDITION. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. WE FIND AT THE OUTSET, THE LD AR ARGUED THAT PENALTY THAT IS IN DISPUTE BEFORE US, FALLS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT IN ITS CIRCULAR NO. 17/2019 DATED 08/08/2019 FOR PREFERRING APPEAL BY THE REVENUE BEFORE THIS TRIBUNAL. WE FIND THAT THE LD. DR VEHEMENTLY ARGUED THAT THE SAID CASES FALL WITHIN THE EXCEPTION PROVIDED IN PARA 10(E) OF THE SAID CIRCULAR AND ACCORDINGLY HE ARG UED THAT THE APPEALS ARE MAINTAINABLE. WE FIND THAT THE EXCEPTION PROVIDED IN PARA 10(E) OF THE CIRCULAR 17/2019 DATED 08/08/2019 ITA NO . 6943 /MUM/ 2019 & OTHER APPEALS M/S. ALMIGHTY INTERLINK STEEL PVT. LTD., 3 IS APPLICABLE ONLY FOR THE QUANTUM PROCEEDINGS AND THE SAME CANNOT BE MADE APPLICABLE FOR PENALTY PROCEEDINGS. IT IS WELL SET TLED THAT PENALTY AND QUANTUM ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. ACCORDINGLY, WE DISMISS THESE APPEALS OF THE REVENUE BY FOLLOWING THE AFORESAID CIRCULAR NO.17/2019 DATED 08/08/2019 AND HOLD THAT THE APPEALS OF THE REVENUE ARE NOT MAINTAINAB LE. 4. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/05/2021. SD/ - ( C.N. PRASAD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 11 / 05 / 202 1 KARUNA , SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//