ITO 1(2)(3), MUMBAI V. MARIDDHI TRADING & PROPERTIES P.LTD, MUMBAI

ITA 6964/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79439 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-07-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 19-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUM BAI , ! BEFORE SHRI SANJAY ARORA, AM AND DR. S. T. M. PAVA LAN, JM ' # I.T.A. NO. 6964/MUM/2012 ( / ASSESSMENT YEAR: 2007-08) ITO-1(2)(3), ROOM NO. 536, 5 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400 020 # VS. MARIDDHI TRADING & PROPERTIES P. LTD. MAFATLAL HOUSE, 5 TH FLOOR, H. T. PAREKH MARG, BACKBAY RECLAMATION, MUMBAI-400 020 $ #'%' ./PAN/GIR NO. AACCM 3656 P ( $& /APPELLANT ) : ( '($& / RESPONDENT ) $&)* / APPELLANT BY : SHRI JEEVANLAL LAVIDIYA '($&)* / RESPONDENT BY : NONE + ,)- / DATE OF HEARING : 17.07.2014 DATE OF ORDER : 22.07.2014 '.# O R D E R PER SANJAY ARORA, A. M.: THIS IS AN APPEAL BY THE REVENUE DIRECTED AGAINST T HE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-2, MUMBAI (CIT(A) FOR SHO RT) DATED 26.09.2012, PARTLY CONFIRMING THE LEVY OF PENALTY U/S. 221(1) OF THE I NCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A.Y.) 2007-08 VIDE ORDER DATED 14.03.2011. 2. NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE- RESPONDENT, WHEN THE APPEAL WAS CALLED OUT FOR HEARING. HOWEVER, DUE NOTICE THROUGH LISTING PER THE NOTICE BOARD OF THE 2 ITA NO. 6964/MUM/2012 (A.Y. 2007-08) ITO VS. MARIDDHI TRADING & PROPERTIES PVT. LTD. TRIBUNAL AS WELL AS BY WAY OF POSTING THROUGH NET, I.E., SUBSEQUENT TO THE INITIAL POSTING THROUGH PERSONAL SERVICE, HAVING BEEN MADE, WE CONS IDER THE ASSESSEE TO HAVE BEEN PUT TO NOTICE AND, ACCORDINGLY, PROCEEDED TO DECIDE THE AP PEAL AFTER HEARING THE PARTY BEFORE US. 3. THE ONLY ISSUE ARISING IN THIS APPEAL IS WITH RE GARD TO THE QUANTUM OF THE PENALTY U/S. 221(1) R/W S. 140A(3) TO BE LEVIED IN VIEW OF THE ADMITTED DEFAULT IN NON-PAYMENT OF SELF ASSESSMENT TAX, DETERMINED AT RS.30.64 LACS, B Y THE ASSESSEE. THE SAME HAVING BEEN LEVIED BY THE ASSESSING OFFICER (A.O.) AT RS.10 LAC S, STOOD REDUCED BY THE LD. CIT(A) TO RS.5 LACS, SO THAT THE REVENUE IS IN APPEAL. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ADMITTE D TAX, DUE FOR PAYMENT ON 30.11.2007 , WAS FINALLY PAID ONLY ON 28.03.2009 , I.E., AT A DELAY OF ABOUT 16 MONTHS. THE ASSESSEE HAD, INSTEAD OF PAYING ITS STATUTORY DUES, UTILIZED THE FUNDS ARISING TO IT ON THE SALE OF PROPERTY FOR RS.338.16 LACS, PROFIT ON WHIC H LED TO THE INSTANT LIABILITY TO TAX UNDER THE ACT, DEPLOYED THE SAME WITH SISTER CONCERNS, SO THAT IT WAS A CASE OF WILLFUL DEFAULT. NO VALID GROUND/S FOR NON-LEVY OF THE PENALTY HAVIN G BEEN FOUND, THE SAME WAS IMPOSED AT RS.10 LACS. IN APPEAL, FINDING THE SAME AS EXCES SIVE, I.E., IN RELATION TO THE TAX, PAYMENT OF WHICH STOOD DELAYED, BY MORE THAN A YEAR, PENALT Y STOOD REDUCED BY THE LD. CIT(A) TO RS.5 LACS, SO THAT THE REVENUE IS IN APPEAL. 5. WE HAVE HEARD THE PARTY BEFORE US, AND PERUSED T HE MATERIAL ON RECORD, GIVING OUR CAREFUL CONSIDERATION TO THE MATTER. WE FIND THE LD . CIT(A) TO HAVE DISCUSSED THE MATTER IN DETAIL, DEALING WITH THE ASSESSEES OBJECTIONS T HERETO. WE FIND THE REDUCTION IN THE QUANTUM OF PENALTY AS MADE BY THE LD. CIT(A) TO BE NOT INAPPROPRIATE. THE SAME, IT IS TO BE APPRECIATED, IS ONLY BY WAY OF A DETERRENT; THE ASSESSEE BEING SEPARATELY LIABLE FOR INTEREST ON THE DELAY IN THE PAYMENT OF ADVANCE TAX AS WELL AS U/S.220(2) OF THE ACT FOR THE PERIOD FOR WHICH IT IS DEEMED TO BE IN DEFAULT. NO OBJECTION COULD ALSO BE BROUGHT TO OUR NOTICE BY THE LD. DR. WE, ACCORDINGLY, FINDING NO I NFIRMITY THEREIN, CONFIRM THE IMPUGNED ORDER. WE DECIDE ACCORDINGLY. 3 ITA NO. 6964/MUM/2012 (A.Y. 2007-08) ITO VS. MARIDDHI TRADING & PROPERTIES PVT. LTD. 6. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . /0 -1 ) /) -23! ORDER PRONOUNCED IN THE OPEN COURT ON JULY 17, 2014 AT THE CONCLUSION OF THE HEARING. SD/- SD/- (DR. S. T. M. PAVALAN) (SANJAY ARORA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER + 4, MUMBAI; 5 DATED : 22.07.2014 # ROSHANI , SR. PS ! ' #$%& ' &$ # COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. '($& / THE RESPONDENT 3. '' + 6- 7 8 / THE CIT(A) 4. '' + 6- / CIT - CONCERNED 5. 9: ;'-<= ' <=0 + 4, / DR, ITAT, MUMBAI 6. ; >? , # GUARD FILE ! ( / BY ORDER, )/(* + (DY./ASSTT. REGISTRAR) , + 4, / ITAT, MUMBAI