PRAVINCHANDRA I. PATEL, MUMBAI V. DCIT 22(2), MUMBAI

ITA 7062/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2001 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 05-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 03-12-2013
• Court: TRIBUNAL
• Assessee Lawyers: MITESH J THAKKAR
• Keywords: Bonafide mistake

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI BEFORE SHRI R.C.SHARMA , A M & SHRI AMARJIT SINGH , J M ./ ITA NO . 7 062 / MUM/20 1 3 ( / ASSESSMENT YEAR : 20 0 8 - 20 0 9 ) MR. PRAVINCHANDRA I. PATEL, PROP. M/S PRESTIGE CONSTRUCTION, 4, AKASH DEEP, PESTOM SAGAR, ROAD NO. 3, CHEMBUR, MUMBAI - 400089 VS. DCIT - 22(2) , MUMBAI ./ ./ PAN/GIR NO. : A A D PP 5719 Q ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI MITESH J. THAKKAR /REVENUE BY : DR. S. PANDIYAN / DATE OF HEARING : 05 / 1 0 / 2015 / DATE OF PRONOUNCEMENT 15 /12 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MUMBAI , DATED 27 - 9 - 2013 , FOR THE ASSESSMENT YEAR 200 8 - 0 9 , IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE I.T.ACT . 2. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT AO HAS IMPOSED PENALTY OF RS.1,54,555/ - IN RESPECT OF INTEREST INCOME FROM VIJAYA BANK AMOUNTING TO RS. 3,82,478/ - AS NON - DISCLOSED IN THE RETURN. 3. THE CONTENTION OF THE ASSESSEE BEFORE THE AO WAS THAT ONLY DUE TO OVERSIGHT THE INTEREST FROM VIJAYA BANK WAS LEF T TO BE SHOWN IN THE COMPUTATION OF INCOME WHEREAS INTEREST FROM ICICI BANK WAS SHOWN . IT WAS ALSO SUBMITTED THAT ASSESSEE HAS NO INTENTION TO CONCEAL THE INTEREST ITA NO. 7062 /M/1 3 2 INCOME FROM VIJAYA BANK, INSOFAR AS ASSESSEE HAS FILED STATEMENT OF TDS DEDUCTED ON THIS INT EREST INCOME BY VIJAYA BANK. DURING THE COURSE OF ASSESSMENT ITSELF THE ASSESSEE HAS AGREED FOR THE ADDITION. HOWEVER, THE AO DID NOT AGREE WITH THE ASSESSEE AND IMPOSED PENALTY U/S.271(1)(C) OF THE ACT, W HICH WAS CONFIRMED BY THE CIT(A) , AGAINST WHICH AS SESSEE IS IN FURTHER APPEAL BEFORE US. 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT DUE TO INADVERTENT MISTAKE, THE ASSESSEE HAS LEFT INTEREST INCOME, HOWEVER, FULL DISCLOSURE WITH REGARD TO THE INTEREST PAID BY VIJAYA BANK AS WELL AS TAX DEDUCTE D THEREON WAS FILED ALONG WITH THE RETURN OF INCOME. EVEN AT THE ASSESSMENT STAGE, THE ASSESSEE HAS CONCEDED THE MISTAKE. IT APPEARS THAT IT WAS A BONAFIDE MISTAKE FOR WHICH NO PENALTY SHOULD HAVE BEEN IMPOSED U/S.271(1)(C) OF THE ACT. RELIANCE CAN BE PLA CED ON THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF HINDUSTAN STEELS LTD., 83 ITR 26 . 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 15 /12 / 201 5 . SD/ - SD/ - ( AMARJIT SIN GH ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 15 /12 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPON DENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//