PARAG M SANGHVI, MUMBAI V. D.C.I.T. CEN.CIR.38, MUMBAI

ITA 8668/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9250 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 22-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V KRISHNAMOORTY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C BENCH BEFORE SHRI B.R.MITTAL(JUDICIAL MEMBER) AND SHRI N.K. BILLAIYA (ACCOUNTANT MEMBER) ITA NOS.8668 MUM/2011: ASSESSMENT YEARS: 2004-05 ITA NOS.8669 MUM/2011: ASSESSMENT YEARS: 2005-06 ITA NOS.8670 MUM/2011: ASSESSMENT YEARS: 2006-07 ITA NOS.8671 MUM/2011: ASSESSMENT YEARS: 2007-08 SHRI PARAG M SANGHVI, 2203, WINDSOR TOWER, SHASTRI NAGAR, ANDHERI(W), MUMBAI-400 053 PA NO.ATYPS 3041 A DCIT, CENTRAL CIRCLE-38, MUMBAI. (APPELLANT) VS (RESPONDENT) APPELLANT BY : SHRI HARIOM TULSIYAN RESPONDENT BY: SHRI V.KRISHNAMOORTY DATE OF HEARING: 11 .12.2012 DATE OF PRONOUNCEMENT: 11 .12.2012 ORDER PER BENCH: THE ASSESSEE HAS FILED THESE FOUR APPEALS FOR ASSE SSMENT YEARS 2004-05, 2005- 06, 2006-07 AND 2007-08 AGAINST A COMMON ORDER DAT ED 4.10.2011 OF LD CIT(A) ON A COMMON GROUND OF CONFIRMING PENALTY LEVIED U/S.271( 1)(B) OF THE ACT @ RS.10,000/- PER ASSESSMENT YEAR. 2. DURING THE COURSE OF HEARING, LD A.R. SUBMITTED THAT LD CIT(A) PASSED A COMMON PENALTY ORDER DATED 4.10.2011 CONFIRMING LEVY OF PE NALTY U/S.271(1)(B) OF THE ACT FOR ASSESSMENT YEARS 2002-03, 2003-04, 2004-05, 2005-06 ,2006-07, 2007-08 AND 2008-09. HE SUBMITTED THAT ON SIMILAR FACTS PENALTY WAS ALSO LEVIED BY THE AO U/S.271(1)(B) OF ITA NOS.8668 MUM/2011: ASSESSMENT YEARS: 2004-05 ITA NOS.8669 MUM/2011: ASSESSMENT YEARS: 2005-06 ITA NOS.8670 MUM/2011: ASSESSMENT YEARS: 2006-07 ITA NOS.8671 MUM/2011: ASSESSMENT YEARS: 2007-08 2 THE ACT BY PASSING IDENTICAL ORDERS IN THE CASE OF OTHER FAMILY MEMBERS OF THE ASSESSEE, NAMELY SMT ZEENAT P SANGHVI AND SMT. SARALA M SANG HVI. HE SUBMITTED THAT THE TRIBUNAL IN THE CASE OF SMT. ZEENAT P SANGHVI FOR A SSESSMENT YEARS 2002-03, 2004-05, 2006-07 AND 2008-09 AND IN THE CASE OF SMT. SARALA M SANGHVI FOR ASSESSMENT YEARS 2004-05, 2007-08 AND 2008-09 AND ALSO IN THE CASE O F ASSESSEE FOR ASSESSMENT YEAR 2002-03(I.T.A.NO.8666/M/2011), A.Y. 2003-04 (I.T.A. NO.8667/M/2011) AND A.Y.2008- 09 (I.T.A. NO.8672/M/2011) BY A COMMON ORDER DATED 9.5.2012 HAS CANCELLED THE PENALTIES LEVIED BY THE AO U/S.271(1)(B) OF THE ACT . HE FURNISHED A COPY OF THE SAID ORDER OF THE TRIBUNAL TO SUBSTANTIATE HIS SUBMISSIO N. LD A.R. SUBMITTED THAT CASE OF THE ASSESSEE FOR ASSESSMENT YEARS UNDER CONSIDERATION V IS. A.YS. 2004-05, 2005-06,2006-07 AND 2007-08 IS COVERED BY THE ASSESSEES OWN CASE B Y ORDER OF THE TRIBUNAL DT.9.5.2012 (SUPRA) AND, THEREFORE, PENALTY AS CONFIRMED BY LD CIT(A) U/S.271(1)(B) BE CANCELLED. 3. LD D.R. RELIED ON ORDERS OF AUTHORITIES BELOW. 4. WE HAVE CONSIDERED SUBMISSIONS OF LD REPRESENTAT IVES OF PARTIES, ORDERS OF AUTHORITIES BELOW AS WELL AS ORDER OF THE TRIBUNAL DATED 9.5.2012(SUPRA). 5. WE OBSERVE THAT LD CIT(A) PASSED A COMMON ORDER DATED 4.10.2011 FOR ASSESSMENT YEARS 2002-03 TO 2008-09 CONFIRMING LEVY OF PENALTY OF RS.10,000/- EACH OF THE ASSESSMENT YEAR. HOWEVER, THE TRIBUNAL, INTER A LIA, IN THE CASE OF ASSESSEE ITSELF FOR ASSESSMENT YEARS 2002-03, 2003-04 AND 2008-09 HAS A LREADY CANCELLED PENALTY AFTER HOLDING THAT NO WHERE IT IS ALLEGED THAT THE CONDUC T OF THE ASSESSEES OR THEIR CHARTERED ACCOUNT IN THE PROCEEDINGS WAS DELIBERATE DEFIANCE OF LAW ON THEIR PART. THE TRIBUNAL HAS HELD THAT THERE IS NO JUSTIFICATION ON THE PART OF THE AO TO LEVY PENALTY FOR NON- COMPLIANCE BY FILING THE DETAILS ON 20.10.2009. THE TRIBUNAL HAS ACCORDINGLY CANCELLED THE PENALTY LEVIED BY THE AO U/.S.271(1)(B)OF THE A CT. IN VIEW OF ABOVE ORDER OF THE TRIBUNAL(SUPRA), WE CANCEL THE PENALTY FOR ALL THE ASSESSMENT YEARS UNDER CONSIDERATION VIZ; A.YS. 2004-05, 2005-06,2006-07 AND 2007-08 LEV IED U/S.271(1)(B) OF THE ACT BY ALLOWING GROUNDS OF APPEAL TAKEN BY THE ASSESSEE. ITA NOS.8668 MUM/2011: ASSESSMENT YEARS: 2004-05 ITA NOS.8669 MUM/2011: ASSESSMENT YEARS: 2005-06 ITA NOS.8670 MUM/2011: ASSESSMENT YEARS: 2006-07 ITA NOS.8671 MUM/2011: ASSESSMENT YEARS: 2007-08 3 6. IN THE RESULT, APPEALS FOR ASSESSMENT YEARS 2004 -05, 2005-06,2006-07 AND 2007- 08 ARE ALLOWED. PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2012 SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER SD/- (B.R. MITTAL) JUDICIAL MEMBER MUMBAI, DATED 11 TH DECEMBER, 2012 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),37, MUMBAI 4. COMMISSIONER OF INCOME TAX,-1 , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH C MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI