RELIABLE METAL INDUSTRIES, MUMBAI V. ACIT -25(3), MUMBAI

ITA 758/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4517 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 07-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHI RAM KARTIKEYAN LD
• Assessee Lawyers: MEHUL SHAHLD
• Keywords: Bogus purchase
• Section: 271(1)(c)

Judgement Text

ITA NO.758/MUM/2018 M/S. RELIABLE METAL INDUSTRIES ASSESSMENT YEAR :2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.758/MUM/2018 ( / ASSESSMENT YEAR:2010-11 RELIABLE METAL INDUSTRIES 21, CHANDRA MILAN, MG ROAD VILE PARLE(E) MUMBAI-400 057. / VS. A CIT - 25(3) C-10, PRATYAKSHKAR BHAVAN BANDRA KURLA COMPLEX MUMBAI. ./ ./PAN/GIR NO. AACFR-6082-K ( /APPELLANT ) : ( / RESPONDENT ) APPELLANT BY : MEHUL SHAH - LD.AR RESPONDENT BY : ABHI RAM KARTIKEYAN - LD.DR !' / DATE OF HEARING : 18/03/2019 !' / DATE OF PRONOUNCEMENT : 22/03/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2010-11 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-37, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-37/IT-679/ACIT -25(3)/15-16 DATED 18/11/2017 QUA CONFIRMATION OF CERTAIN PENALTY U/S 271(1)(C). 2. UPON PERUSAL OF QUANTUM ASSESSMENT ORDER U/S 143 (3) DATED 23/12/2015, IT TRANSPIRES THAT THE ASSESSEE HAS BEE N SADDLED WITH ITA NO.758/MUM/2018 M/S. RELIABLE METAL INDUSTRIES ASSESSMENT YEAR :2010-11 2 ESTIMATED ADDITION OF RS.3.31 LACS, BEING 25% OF ALLEGED BOGUS PURCHASES. AGAINST THE SAME, PENALTY PROCEEDINGS WERE INITIATE D U/S 271(1)(C) IN THE QUANTUM ASSESSMENT ORDER AND THE A SSESSEE HAS BEEN SADDLED WITH PENALTY OF RS.1.02 LACS BY LD. AO VIDE ORDER DATED 15/06/2016. 3. SUBSEQUENTLY, UPON FURTHER APPEAL AGAINST QUANTU M ADDITIONS, THE ESTIMATED ADDITIONS WERE REDUCED TO 12.5% BY LD. FI RST APPELLATE AUTHORITY VIDE ORDER DATED 18/11/2017. THEREFORE, K EEPING IN VIEW THE SAME, THE LD. FIRST APPELLATE AUTHORITY, WHILE ADJU DICATING APPEAL AGAINST PENALTY, DIRECTED LD. AO TO REDUCE THE PENALTY ACCO RDINGLY. STILL AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. AFTER HEARING RIVAL SUBMISSIONS AND PERUSAL OF R ELEVANT MATERIAL ON RECORD, THE UNDISPUTED POSITION THAT EMERGES IS THE FACT THAT THE PENALTY HAS BEEN LEVIED / CONFIRMED MERELY AGAINST ESTIMATE D DISALLOWANCES OF 12.5%. NEVERTHELESS, THE ASSESSEES CLAIM HAS BEEN ACCEPTED SUBSTANTIALLY WHICH DO NOT SUGGEST THAT THERE WAS F URNISHING OF INACCURATE PARTICULARS OF INCOME OR CONCEALMENT OF INCOME WITHIN THE MEANING OF SECTION 271(1)(C). THEREFORE, THE FACTUA L MATRIX DOES NOT INSPIRE TO CONCUR WITH THE STAND OF FIRST APPELLATE AUTHORITY. HENCE, WE DELETE THE IMPUGNED PENALTY. 5. THE APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2019. SD/- SD/- (MAHAVIR SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 22/03/2019 SR.PS, JAISY VARGHESE ITA NO.758/MUM/2018 M/S. RELIABLE METAL INDUSTRIES ASSESSMENT YEAR :2010-11 3 !'#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT 3. # # $ ( ) / THE CIT(A) 4. # # $ / CIT CONCERNED 5. %& !'( , # ( , / DR, ITAT, MUMBAI 6. &*+, / GUARD FILE / BY ORDER, / % (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.