DCIT - 17(2), MUMBAI V. ROYAL ENTERPRISES, MUMBAI

ITA 7102/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0664 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 05-12-2013
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Assessee Lawyers: PARAS S SAVLA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI SANJAY GARG , J M ./ ITA N O. 7102 / MUM/20 1 3 ( / ASSESSMENT YEAR : 200 8 - 09 ) DCIT - 17(2), MUMBAI VS. M/S ROYAL ENTERPRISES, 4/98, AMRIT VILLA, R.A.KIDWAI ROAD, WADALA, MUMBAI - 400031 ./ ./ PAN/GIR NO. : A A A PT 7154 J ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI LOVE KUMAR /ASSESSEE BY : SHRI PARAS S. SAVLA / DATE OF HEARING : 0 6 /0 5 / 2015 / DATE OF PRONOUNCEMENT 06/05 /2015 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - 19 , MUMBAI , DATED 19 - 9 - 2013 FOR THE ASSESSMENT YEAR 200 8 - 09 IN THE MATTER IMPOSITION OF PENALTY U/S. 271 (1)(C) OF THE I.T.ACT . 2. RIVAL CONTENTIONS HAVE BEEN HEARD A ND RECORD PERUSED. IN THIS CASE, PENALTY HAS BEEN IMPOSED IN RESPECT OF REVISED CLAIM FILED BY THE ASSESSEE U/S.80IB. THE PENALTY DELETED BY THE CIT(A) AFTER GIVING DETAILED FINDING AT PARA 5 OF HIS APPELLATE ORDER. WE FOUND THAT IN THE IMMEDIATELY PRECEDI NG ASSESSMENT YEAR 2007 - 08 PENALTY WAS IMPOSED FOR REDUCTION IN THE CLAIM U/S.80IB. THE CIT(A) HAS DELETED THE PENALTY AND THE TRIBUNAL ITA NO. 7102 /1 3 2 VIDE ITS ORDER DATED 28 - 8 - 2014 CONFIRMED THE ACTION OF CIT(A) AFTER HAVING THE FOLLOWING OBSERVATIONS : - 3. HAVING HEAR D BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD, IT IS PERTINENT TO MENTION THAT THE PERUSAL OF THE ASSESS MENT ORDER INDICATES THAT THE AO HAS NOT POINTED OUT ANY SPECIFIC EVIDENCE REGARDING THE INFLATION OF EXPENSES OR MAKING AN INFLATED CLAIM U / S 80 I B . THE A O ENTERED INTO A SCIENTIFIC EXERCISE AND WORKED OUT THE AVERAGE COST OF CONSTRUCTION. THE BUILDING NOS. 8 & 9 ARE DUPLEX FLAT BUILDING AND THE CONSTRUCTION COST IS HIGHER ACCORDING TO THE ASSESSEE AND THIS FACT HAS BEEN IGNORED BY THE A O AS OBSERVE D BY THE LD.CIT(A). IT IS ALSO PERTINENT TO MENTION THAT THE A O HAS NOT BROUGHT ON RECORD ANY SPECIFIC INSTANCES OF INFLATION OF EXPENSES BY THE ASSESSEE. ALSO, IT IS OBSERVED THAT THE ASSESSEE HAS FILED ALL DETAILS BEFORE THE A O AND HENCE THERE IS NO QUES TION OF FURNISHING INACCURATE PARTICULARS OF INCOME OR THE ASSESSEE HAS CONCEALED ANY INCOME. IN VIEW OF THAT MATTER, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF THE LD.CIT ( A) DELETING THE IMPUGNED PENALTY LEVIED BY THE A O AND THUS THE SAME IS UPHELD. THE FACTS AND CIRCUMSTANCES DURING THE YEAR UNDER CONSIDERATION ARE SAME, WHEREIN PENALTY WAS IMPOSED FOR REDUCTION IN CLAIM OF DEDUCTION U/S.80IB , RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR IMMEDIATELY PRECEDING YEAR, WE CONFIRM THE ACTION OF THE CIT(A) FOR DELETING THE PENALTY. 4 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 06/05 / 201 5 . SD/ - SD/ - ( ) ( SANJAY GARG ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 06/05 /201 5 . . /PKM , . / PS ITA NO. 7102 /1 3 3 / COPY OF THE ORDER FORWARDED T O : / 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//